Despite a long list of highlights for Q4 and 2012 as a whole, Starwood’s report generally reflects the zero growth state of Europe hospitality overall. Below are some of the company’s listed positives:
- During the quarter, the Company signed 40 hotel management and franchise contracts,representing approximately 8,400 rooms, and opened 17 hotels and resorts with approximately 3,900 rooms.
- During the quarter, the Company completed sales of hotels for gross cash proceeds ofapproximately $275 million, retired $725 million of debt, issued $350 million of 3.125% SeniorNotes due 2023, paid an annual dividend of $1.25 per share, and repurchased 3.5 million shares ata total cost of $180 million and an average price of $52.07 per share.
- Earnings from Starwood’s vacation ownership and residential business increased approximately$144 million compared to 2011, including a $130 million increase in earnings from the St. Regis BalHarbour residential project for 2012.
- During the year, the Company completed sales of hotels for gross cash proceeds of approximately$542 million, retired $1.272 billion of debt, issued $350 million of 3.125% Senior Notes due 2023,paid an annual dividend of $1.25 per share, and repurchased 6.3 million shares at a total cost of $320 million and an average price of $50.83 per share.
Starwood CEO Frits van Paasschen told Bloomberg News in a statement:
“The year looks to be somewhat stronger than 2012, as the uncertainty we saw in major world economies is showing signs of giving way to strong demand growth. We are bullish about the long-term outlook on the global high-end lodging industry.”
Also on Thursday, Starwood and Delta Airlines announced their so-called Crossover Rewards™ program, a incentive that allows Delta SkyMiles Medallion members and SPG elite members to share benefits. The company operates both the St. Regis and W brands of hotels worldwide.
The video from Starwood Hotels & Resorts below, tells of the company’s brands and philosophy.