Starwood Announces Third Quarter Results

Third Quarter Financial Highlights:
* Pro forma comparable diluted EPS from continuing operations increased 3% to $0.38 (15% excluding a $15 million pro forma adjustment, in 1998, relating to prior quarters)

* REVPAR for 153 Same-Store Owned Hotels increased 4.7% worldwide, including a 6.2% increase in Europe (11.0% excluding foreign exchange) and a 5.4% increase in North America

* EBITDA increased 6.3% for 153 Same-Store Owned Hotels worldwide; 7.1% in Europe and 4.4% in North America

* Total revenues increased 8.1% to $956 million
* 15 hotels with approximately 4,200 rooms added during the quarter

Pro Forma Comparable Results:
Third Quarter Ended September 30, 1999: For the third quarter of 1999, pro forma comparable income from continuing operations was $0.38 per diluted share on revenues of $956 million compared to $0.37 per diluted share on revenues of $884 million in the corresponding period in 1998. Pro forma comparable income from continuing operations decreased to $74 million in the third quarter of 1999 compared to $79 million in the same period of 1998. The decrease was primarily related to a $15 million pro forma adjustment to reduce selling, general and administrative costs in the third quarter of 1998 related to prior quarters. Net income was also negatively impacted by the interest expense incurred as a result of the Company`s stock buy-back program although the impact on EPS was offset by a reduction in the number of shares outstanding. (See the attached unaudited consolidated statements of operations for the three months ended September 30, 1999 and 1998 and the notes thereto for the basis of the pro forma comparable results.)

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Nine Months Ended September 30, 1999: For the nine months ended September 30, 1999, pro forma comparable income from continuing operations increased 34.2% to $1.02 per diluted share on revenues of approximately $2.775 billion compared to pro forma comparable income from continuing operations of $0.76 per diluted share on pro forma comparable revenues of approximately $2.655 billion for the corresponding period in 1998. Pro forma comparable income from continuing operations was approximately $199 million in the nine months ended September 30, 1999 compared to $167 million in the same period of 1998. (See the attached unaudited consolidated statements of operations for the nine months ended September 30, 1999 and 1998 and the notes thereto for the basis of the pro forma comparable results.)

 


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