STAMFORD, CT-Starwood Hotels & Resorts Worldwide reports its first quarter earnings soared 66% due in part to strong growth in North America and a tax benefit.
The hotelier's net income was $213 million, or $1.09 a share, from $128 million, or 65 cents, a year earlier. That compares with a 53-cent average estimate of 15 analysts, according to data compiled by Bloomberg.
Vasant Prabhu, chief financial officer of Starwood, says earnings were bolstered by a $70-million tax benefit. He also says that its North American hotel portfolio benefitted from tight supply of hotel rooms that drove hotel room rates higher.
“We had a strong start to the year,” Prabhu says. “The global economy accelerated in the first quarter. But the best news of all was the U.S. The U.S. was our engine of our first quarter performance.” See story at Bloomberg News.
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