Starwood Hotels witnessed net income more than quadruple during Q1, with CEO Frits van Paasschen saying the company was "very bullish" about long-term prospects.
Excluding special items, income from continuing operations was US $124 million, including income from the St. Regis Bal Harbour residential project. Including special items, income from continuing operations was $129 million.
Worldwide System-wide REVPAR for Same-Store Hotels increased 5.8% (6.4% in constant dollars) compared to 2011, while management fees, franchise fees and other income increased 13.6% compared to 2011.
Van Paasschen said the company’s momentum had “picked up in the first quarter”.
“Worldwide RevPAR grew 6.4%, adjusting for exchange rates, and fees were up a healthy 13.6%. We are proud to report that our brand portfolio again outperformed the market, posting our 11th straight quarterly gain in RevPAR index,” he asserted.
"Going into the year, we said that 2012 was more likely to surprise on the upside. So far, that is playing out. More importantly, we remain very bullish on the long-term. Seemingly unstoppable demographic and economic trends are fueling global growth in demand for high end travel. Rising wealth around the world and globally interconnected businesses will lead to ever more travel."
During the quarter, the Company signed 32 hotel management and franchise contracts, representing approximately 9,000 rooms, and opened 18 hotels and resorts with approximately 4,500 rooms.
Net income was $128 million and $0.65 per share in the first quarter of 2012, compared to $28 million and $0.14 per share in the first quarter of 2011.