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Starwood renovations
Bloomberg News
help profits grow 33%WHITE PLAINS, N.Y. Starwood Hotels & Resorts Worldwide Inc., the world's largest hotel owner, said first-quarter profits rose 33 percent as it renovated aging hotels and wooed its most-frequent hotel guests.
Profit from operations rose to $53 million, or 26 cents a share, from profit from continuing operations of $40 million, or 20 cents, in the year-earlier quarter. Sales rose 18 percent to $1.01 billion from $853 million.
In March, Starwood said it expected first-quarter profit to be at least 20 percent higher than the 21 cents a share analysts projected then. The company is renovating its Sheraton chain to attract more guests. White Plains, N.Y.-based Starwood, whose other brands include Westin hotels, is also offering perks such as discounted rooms to regular customers. The profit was in line with analysts' new average estimate of 25 cents.
In Hawaii, Starwood manages the Sheraton and Westin hotels and smaller properties, including the Kapalua Bay Hotel and the former Colony Surf, now called the W Honolulu diamond head.
Starwood had a charge in the quarter of $3 million, or 1 cent a share, for the early payment of a mortgage. That made net income $50 million, or 25 cents. The year-ago results excluded Starwood's Caesars World casino business. The company sold the casinos to Park Place Entertainment Corp. for $3 billion in December.
