During the fourth quarter of 2009, 24 new hotels and resorts (representing approximately
5,000 rooms) entered the system, including the W Barcelona (Spain, 473 rooms), the
Westin Hyderabad Mindspace (India, 252 rooms), the Le Méridien Chongqing (China, 319
rooms), the Sheraton Puerto Rico Convention Center Hotel & Casino (San Juan, 503
rooms), the W Boston (Massachusetts, 235 rooms) and seven Aloft hotels. Fourteen
properties (representing approximately 4,000 rooms) were removed from the system
during the quarter.
Owned, Leased and Consolidated Joint Venture Hotels
Worldwide REVPAR for Starwood branded Same-Store Owned Hotels decreased 7.9%
(10.9% in constant dollars). REVPAR at Starwood branded Same-Store Owned Hotels in
North America decreased 9.6% (10.7% in constant dollars). Internationally, Starwood
branded Same-Store Owned Hotel REVPAR decreased 4.6% (11.3% in constant dollars).
The Company’s continued rigorous cost cutting programs helped mitigate the impact of
sharp revenue declines during the quarter.
Revenues at Starwood branded Same-Store Owned Hotels in North America decreased
11.0% (12.2% in constant dollars) while costs and expenses decreased 5.7% when
compared to 2008.
Revenues at Starwood branded Same-Store Owned Hotels Worldwide decreased 8.8%
(11.9% in constant dollars) while costs and expenses decreased 6.3% when compared to
2008.
Revenues at owned, leased and consolidated joint venture hotels were $430 million when
compared to $493 million in 2008.
Vacation Ownership
Total vacation ownership revenues of $134 million were flat when compared to 2008.
Originated contract sales of vacation ownership intervals decreased 10.9% primarily due to
an overall decline in demand due to the current economic climate. The average price per
vacation ownership unit sold decreased 7.1% to approximately $15,000, driven by a higher
sales mix of lower-priced inventory, including a higher percentage of biennial inventory.
The number of contracts signed decreased 5.5% when compared to 2008. During the
fourth quarter of 2009, the Company sold vacation ownership notes receivable and
recognized gains of $23 million.
As previously announced, during the fourth quarter of 2009, the Company completed a
comprehensive review of its vacation ownership projects. No new projects are being
initiated and the Company has decided not to develop certain vacation ownership sites and
future phases of certain existing projects. As a result, inventories, fixed assets and land
values at certain projects were determined to be impaired and were written down to their
fair value, resulting in a non-cash pre-tax impairment charge of $255 million. Additionally,
in connection with this review of the business, the Company made a decision to reduce the
pricing of certain inventory at existing projects, resulting in a pre-tax charge of $17 million,
recorded in the vacation ownership and residential costs and expenses line.
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