Starwood records good 1st quarter performance despite accounting charge

28 April 2006
Starwood records good 1st quarter performance despite accounting charge

Starwood, one of the USA's biggest hotel companies, wrote off $72m (£40m) during the first quarter due to a new accounting rule.

Adoption of the rule change, which relates to time-share transactions, reduced net income in the first quarter to 31 March to $5m (£2.77m), compared with $79m (£43.8m) a year ago.

But despite this, and the sale of 16 hotels during the period as well as properties in New Orleans and Mexico weathering hurricanes, turnover increased to $822m (£461m), compared with $813m (2005: £456m) a year ago.

Operating profit was $155m (£86m), compared with $148m (£82m) a year before.

Chief executive Steven Heyer said it had been an outstanding quarter. "We beat our growth expectations in all business segments," he said.

Since the start of 2006, the group has returned over $3.5b (£1.96b) in value to shareholders, mainly from the sale of property assets to property company Host.

Company website >>

Starwood sells 35 properties >>

By Emily Manson

Get your copy of Caterer and Hotelkeeper every week -

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking