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Business Briefs

Reported by Star-Bulletin staff & wire

Thursday, February 10, 2000

Starwood profits rise 9.5% in quarter

WHITE PLAINS, N.Y. -- Starwood Hotels & Resorts Worldwide Inc., the world's largest hotel owner, said fourth-quarter profit rose 9.5 percent as it raised prices and filled more rooms in its Sheraton and Westin hotel chains.

Profit from operations rose to $104 million, or 51 cents a share, from $95 million, or 48 cents, a year earlier. Revenue rose 17 percent to $1.09 billion from $931 million. Starwood raised the average room price at hotels it owns in North America 3.8 percent to $149.38, it said. Occupancy at those hotels rose 1.1 percentage points to 67.9 percent. In Hawaii, Starwood operates the Sheraton and Westin hotels and some smaller properties, including the Kapalua Bay Hotel and the former Colony Surf, now called the W Honolulu - diamond head.

Mortgage rates hit 8.36%, 3-year high

WASHINGTON -- Mortgage rates soared to a 3-year high this week amid fears that the sizzling economy may trigger inflation down the road. The average interest rate on 30-year mortgages rose to 8.36 percent this week, up from 8.25 percent last week, according to a survey released today by Freddie Mac, the mortgage company. This week's rate was the highest since a 8.42 percent rate for the week ending July 12, 1996. Fifteen-year mortgages rose with an average rate of 7.96 percent, compared with the average rate of 7.85 percent last week. One-year averaged an initial rate of 6.73 percent this week, up from 6.65 percent.

Dell's earnings near diminished estimates

ROUND ROCK, Texas -- Dell Computer Corp. said fiscal fourth-quarter net income was $436 million, up 2.6 percent from $425 million a year ago. Per-share earnings for the quarter ending Jan. 28 were 16 cents a share, up from 15 cents a share a year earlier, the company said after the stock market closed today. Dell warned two weeks ago that parts shortages and a Year 2000 slowdown had cut earnings. On average, analysts had expected per-share earnings of about 15.5 cents after the warning.