Starwood Hotels Reports Better-Than-Expected Q4 Earnings, Drop In Net Income

Shares of Starwood Hotels & Resorts Worldwide Inc HOT were trading lower by more than 1 percent after the company reported its fourth quarter results.

Starwood Hotels said it earned $0.89 per share in the fourth quarter on revenue of $1.433 billion. Wall Street analysts were expecting the company to earn $0.79 per share on revenue of $1.44 billion.

Net income from continuing operations fell to $166 million from $245 million in the same quarter a year ago. The company noted the decline primarily reflects the impact of hotel sales in 2014 and 2015.

Worldwide System-wide revenue per available room (REVPAR) for same-store hotels rose 2.8 percent in constant dollars but were lower by 1.1 percent in actual dollars compared to 2014's level. The company noted that system-wide REVPAR for same-store hotels in North America rose 4.7 percent in constant dollars, or 3.3 percent in actual dollars.

Thomas Mangas, Chief Executive Officer of the Company, said, "We had good momentum in our business through the year, with REVPAR index gains in each of our six global regions and a record-breaking year of growth where we signed more new deals and opened more hotels than in any single year in Starwood's entire history, increasing our net rooms growth to 4.4%. As we prepare for the merger with Marriott, our priorities in 2016 will build on this success – accelerating our growth, developing our talent, innovating across our brands, and delighting our guests to grow our REVPAR faster than the competition and deliver superior returns to our owners. While 2015 was clearly a year of change for Starwood given our announced merger with Marriott, our strategy remains very much intact and on track."