The owner of the Sheraton, Westin and W hotel chains, reports that earnings per share was 42 cents as compared to a loss per share of 28 cents a year earlier. Total revenues for the fourth quarter were $983 million or 12% higher than in the fourth quarter of 2001. Revenue for Same Store Owned Hotels worldwide jumped 9.4% in the fourth quarter. REVPAR for hotels in North America shot up 10.6% in the last three months as compared to a year ago, company officials say. Revenues from Starwood's vacation ownership business increased 28.7% in the fourth quarter to $93 million.

Commenting on the company's fourth quarter turnaround, Barry S. Sternlicht, chairman and chief executive officer of Starwood, says, "2002 was a challenging year. The much-anticipated global economic recovery never materialized and business travel remains subdued in the uncertain environment. Booking patterns remain extremely short and forecasting, as well as pricing, in this environment is extremely challenging."

He noted several positive trends that emerged in 2002, despite the troubled hotel environment. For example, REVPAR in its European and Asian operations were strong and will likely remain higher than at its North American properties going into 2003. Despite political unrest in Latin America, the firm's properties there remained profitable.

"Our vacation ownership division had an excellent year with significant momentum that we expect to extend well into 2003 and beyond. The strength in these areas, and a projected flat Latin America performance, will help offset the general weakness in domestic operations and continued pressures of health care costs, real estate taxes and insurance," Sternlicht adds.

The company notes that it expects REVPAR for same store owned hotels worldwide in the first quarter of 2003 to be nearly flat when compared to REVPAR posted in the first quarter of last year. In its report, the company states, "While these expectations do not anticipate an extended war, planning for group meetings and other business travel are already being impacted, to some extent, by the threat of war in the first quarter."

Sternlicht notes, "With the prospects of a war imminent, forecasting is a difficult exercise. Should the world's economies recover earlier than is generally forecasted, our businesses are levered to the upside."