million and EPS was $0.41 in 2009, compared to $329 million and $1.77, respectively, in
2008. Total Company Adjusted EBITDA, which was impacted by the sale or closure of 15
hotels since the beginning of 2008, was $793 million in 2009, compared to $1.157 billion in
2008.
Outlook
For the Full Year 2010:
It is very difficult at this time to provide any definitive point of view on 2010. While business
conditions continue to improve from depressed levels, it is very hard to forecast the pace of
recovery, especially rate. While group bookings have picked up, booking pace for 2010
has continued to lag behind 2009. Booking windows for both transient and group business
have remained short. As such, late breaking business is a larger component of what will
drive our performance in 2010 making forward looking predictions four quarters out
particularly challenging. What we can provide are broad guidelines that we are using for
internal planning purposes:
Based on our fourth quarter results and our expectations for the first quarter, full year 2010
REVPAR at Same-Store Company Operated Hotels Worldwide could be flat to +5% in
local currency and approximately 100 bps higher in dollars at current exchange rates.
REVPAR at Branded Same-Store Owned Hotels Worldwide could be -2% to +2% in local
currency and approximately 100 bps higher in dollars at current exchange rates.
At the midpoint of these REVPAR ranges, adjusted EBITDA would be approximately $750
million (+/– one point of REVPAR drives +/- $15 million of EBITDA).
EPS before special items would be approximately $0.63.
Management and franchise revenues will increase approximately 0% to 5%.
Selling, General and Administrative expenses will increase 3% to 5%.
Operating income from our vacation ownership and residential business will be
approximately $115 million to $125 million, including the impact of adopting SFAS
167, Amendments to FASB Interpretation No. 46(R).
Full year depreciation and amortization will be approximately $335 million.
Full year interest expense will be approximately $262 million (including $20 million
to $23 million from the impact of adopting SFAS 167) and cash taxes will be
approximately $75 million.
Full year effective tax rate will be approximately 22%.
Full year capital expenditures (excluding vacation ownership and residential
inventory) would be approximately $150 million for maintenance, renovation and
technology. In addition, in-flight investment projects and prior commitments for joint
ventures and other investments will total approximately $100 million. Vacation
ownership is expected to generate approximately $150 million in positive cash flow,
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