Fourth Quarter 2009 Operating Results
Management and Franchise Revenues
Worldwide System-wide REVPAR for Same-Store Hotels decreased 7.2% (9.6% in
constant dollars) compared to the fourth quarter of 2008. International System-wide
REVPAR for Same-Store Hotels decreased 3.9% (8.4% in constant dollars).
Worldwide System-wide REVPAR for Same-Store changes by region:
4Q09 REVPAR
Region Reported Constant dollars
North America -10.1% -10.7%
Europe -1.8% -9.1%
Asia Pacific +1.1% -5.4%
Africa and the Middle East -11.9% -10.6%
Latin America -11.7% -11.7%
Worldwide System-wide REVPAR for Same-Store changes by brand:
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4Q09 REVPAR
Brand Reported Constant dollars
St. Regis/Luxury Collection -4.4% -8.5%
W Hotels -2.3% -2.9%
Westin -7.2% -10.0%
Sheraton -7.6% -9.3%
Le Méridien -8.9% -12.7%
Four Points by Sheraton -8.8% -11.9%
Worldwide Same-Store company-operated gross operating profit margins declined
approximately 240 basis points in the fourth quarter driven by REVPAR declines, partially
offset by continued cost-cutting efforts at the property level. International gross operating
profit margins for Same-Store company-operated properties declined approximately 160
basis points, and North American Same-Store company-operated gross operating profit
margins declined approximately 380 basis points.
Management fees, franchise fees and other income were $185 million, down $6 million, or
3.1%, from the fourth quarter of 2008. Management fees decreased 11.9% to $104 million
and franchise fees decreased 2.8% to $35 million. Other income excludes revenues from
the Company’s former Bliss spa business which have been reclassified to discontinued
operations for both 2009 and 2008 as a result of the sale of Bliss at the end of 2009.
During the fourth quarter of 2009, the Company signed 20 hotel management and
franchise contracts, representing approximately 4,200 rooms, of which 16 are new builds
and four are conversions from other brands. At December 31, 2009, the Company had
approximately 350 hotels in the active pipeline representing approximately 85,000 rooms.
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