STAMFORD, Conn. — Starwood Hotels & Resorts Worldwide, Inc. (Starwood) reported a loss per share of $0.20 from continuing operations, compared to last year’s Q2 EPS of $0.69, in its recently released Q2 earnings summary.
Excluding special items, which in Q2 consisted mainly of losses on asset dispositions and impairments of $114 million and restructuring and other special charges of $16 million, EPS from continuing operations was $0.71. Special items.
The continuing operations loss for Q2 equaled $35 million — including the $114 million loss on asset dispositions and impairments — compared to $118 million in the same quarter last year. Excluding special items, the 2016 Q2 income from continuing operations was $121 million compared to last year’s $117 million.
Starwood’s net loss for Q2 2016 was $263 million and $1.56 per share, compared to a 2015 Q2 income of $136 million and $0.79 per share.
“Across virtually every measure that matters to our business, we delivered on or exceeded our goals,” says Thomas Mangas, CEO at Starwood. “Our hotel openings year-to-date are 15 per cent ahead of last year, and our net rooms’ growth remains in our target range of four to five per cent. Developer demand for our brands is strong and with the record 120 contracts representing 21,400 rooms we signed this quarter, our pipeline increased nearly 12 per cent.”
“Global lodging fundamentals remain strong,” adds Alan Schnaid, CFO at Starwood. “However, growth rates in 2016 have been lower than expected at the beginning of the year. Despite the lower rate of growth, our company continues to perform very well. We continue to outperform the competition, with gains in RevPAR Index in each of our three divisions. Looking ahead to the next two quarters, we expect current trends in global lodging to continue. This slower rate of RevPAR growth will contribute to lower fee growth in the second half of 2016 than previously expected. However, we expect that the strong performance of our owned hotels in the first half of the year and our lower SG&A will offset the impact of lower fee growth and partially offset both the loss of earnings from the hotels we sold this year and the impact of foreign exchange.”
The complete Q2 earnings report is available here.