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Starwood Hotels sees profits slip despite revenue rise

Profits at Starwood Hotels & Resorts slid slightly over the first quarter, despite a rise in revenue, as the organisation was hit by one time costs including the Japan earthquake.

For the period that ended March 31st, Starwood reported net income of $28 million, or 14 cents per share, down from $30 million, or 16 cents per share, a year earlier.

Excluding $33 million in one-time items, including costs at a Tokyo hotel after the March 11th earthquake, Starwood said it earned 30 cents per share.

Starwood operates the Sheraton, Westin, St Regis, W and other hotel brands.

Worldwide Starwood did improve revenue, however.

Starwood saw revenue per available room – a key industry metric - climb 10.4 per cent over the period when compared to the previous year.

This increased to 11.1 per cent in North America.

Demand has been steadily increasing over the quarter, Starwood confirmed, allowing modest price rises for the first time during the recovery.

As a result of the positive result, the chain raised expectations for full year earnings.

Starwood now expects to generate $1.60 to $1.70 per share, up from the $1.55 to $1.65 per share forecast earlier.