July 30, 2015 / 12:50 PM / 4 years ago

UPDATE 1-Starwood Hotels profit falls, trims 2015 forecast

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July 30 (Reuters) - Starwood Hotels & Resorts Worldwide Inc , the owner of the Sheraton and Westin hotel chains, reported an 11 percent fall in quarterly profit, hurt by a charge and the strong dollar, and trimmed its 2015 profit forecast.

The company, which gets more than half of its revenue from outside the United States, said it cut its forecast to account for the planned spinoff of its vacation ownership business and the impact of a strong dollar.

In contrast, Marriott International Inc and Hilton Worldwide Holdings Inc, which get most of their revenue from the United States, have raised their full-year forecasts.

The U.S. dollar index, which measures the value of the dollar against a basket of currencies made up of the United States’ major trading partners, rose about 5.8 percent in the first half of the year.

Net profit attributable to Starwood fell to $136 million, or 79 cents per share, in the second quarter ended June 30, from $153 million, or 80 cents per share, a year earlier.

The Stamford, Connecticut-based hotel operator recorded restructuring and other special charges of $23 million in the quarter, compared with a benefit of $3 million a year earlier.

Excluding items, Starwood earned 84 cents per share, handily beating the average analyst estimate of 74 cents, according to Thomson Reuters I/B/E/S.

Revenue fell 3.8 percent to $1.48 billion.

Excluding the impact of foreign exchange, Starwood reported a 4.1 percent rise in revenue per available room (RevPAR) at global hotels open at least one year.

RevPAR is calculated by multiplying a hotel’s average daily room rate by its occupancy rate.

The company said it now expected a full-year profit of $2.93-$3.03 per share, down from $2.94-$3.04 per share.

Starwood, which said in April that it was exploring strategic and financial alternatives, did not provide an update on its progress in its quarterly report.

“We expect the market to be disappointed by the lack of progress,” Jefferies analyst Ian Rennardson wrote in a note to clients.

Up to Wednesday’s close, Starwood’s stock had risen 1.94 percent this year. The Dow Jones U.S. Hotels Index had risen 1.2 percent in the same period. (Reporting by Radhika Rukmangadhan in Bengaluru; Editing by Kirti Pandey and Simon Jennings)

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