Starwood Reports 4Q Loss Due To Travel Slump

NEW YORK— Starwood Hotels & Resorts Worldwide reported a fourth-quarter loss in 2001 attributed to the economic downturn and travel crisis resulting from the Sept. 11 terror attacks, but the hotel company expects to benefit as the economy rebounds later this year. Starwood’s loss from continuing operations, excluding special items, totaled $2 million, or $0.01 per share, compared with a profit of $130 million, or $0.64 a share, last year. Including special items, its loss was $54 million, or $0.28 a share, compared with a profit of $131 million, or $0.64 cents in last year’s fourth quarter. The consensus estimate among 18 analysts polled by Thomson Financial/First Call was for a fourth-quarter loss of $0.03 a share. Starwood Chief Executive and Chairman Barry Sternlicht said the hotel chain is optimistic that the global economies will firm this year and that a rebound will occur in the second half of 2002. Assuming an economic recovery, Starwood expects to report first-quarter earnings of $0.05 a share, $0.40 a share for its second quarter, $0.42 a share for the third quarter and $0.43 a share for its fourth quarter. For the full year, it expects to report a profit of $1.30 a share. Analysts forecast a first-quarter profit of $0.06 cents per share, and a full year profit of $1.08 a share. Starwood quarterly revenues totaled $878 million, down about 21% from $1.1 billion the year before. SOURCE: Reuters