Starwood Q1 results defy expectations

Starwood Hotels & Resorts Worldwide posted positive Q1 results as revenue streams were fuelled by an increase in RevPAR.

Revenue rose 5% to US $1.19 billion as worldwide RevPAR rose 6.3%, with Starwood noting increased demand for its luxury brands.

The company posted a profit of $30 million for the three months ended March 31. That compared with earnings of $6 million a year ago, revenue climbed 5% to $1.19 billion from $1.13 billion.

"Lodging demand for our nine global brands accelerated as we moved through the first quarter, allowing us to beat expectations on robust top-line growth," said chief executive Frits van Paasschen.

"We continued to hold the line on costs. Most encouraging for us was that occupancy gains were led by the luxury market."

The company said it expected full year 2010 RevPAR could be up 5% to 8% assuming consistent currency rates.

Shares in the company rose about 2% to $54.36 with a year-to-date rise of nearly 50%.