Starwood's 1Q to be pressured by revpar decline

WHITE PLAINS, N.Y. - Starwood Hotels & Resorts Worldwide Inc. said Thursday that it expects first-quarter and full-year earnings from continuing operations will be pressured by a significant drop in worldwide revenue per available room and ongoing struggles at its timeshare business.

Revenue per available room, also known as revpar, is a key gauge of a hotel operator's performance.

The hotel and leisure company anticipates first-quarter earnings from continuing operations between $3 million and $13 million, or about 2 cents to 7 cents per share.

Analysts polled by Thomson Reuters expect profit of 13 cents per share. Analysts' estimates typically exclude one-time items.

For the year, Starwood predicts earnings from continuing operations of about $200 million, or $1.10 per share. Analysts forecast full-year net income of $1.20 per share.

Starwood said its outlooks assume a 12 percent decline in revpar at same-store company operated hotels worldwide and a 15 percent drop in revpar at branded same-store owned hotels.

Starwood also reported that its fourth-quarter profit fell 46 percent, hurt by severance costs and a writedown for two vacation ownership projects.

Starwood's properties — which are concentrated in the luxury and upscale segments — include the W, Westin and Sheraton brands.

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