Starwood Hotels beats by $0.03, reports revs in-line; guides Q4 EPS in-line
- Reports Q3 (Sep) earnings of $0.74 per share, $0.03 better than the Capital IQ Consensus of $0.71; revenues fell 4.0% year/year to $1.43 bln vs the $1.43 bln Capital IQ Consensus. Worldwide Systemwide REVPAR for Same-Store Hotels increased 5.4% in constant dollars (decreased 0.3% in actual dollars) compared to 2014. Systemwide REVPAR for Same-Store Hotels in North America increased 5.3% in constant dollars.
- Co issues in-line guidance for Q4, sees EPS of 0.76-0.82 vs. $0.80 Capital IQ Consensus Estimate. Adjusted EBITDA is expected to be ~$300 mln to $315 mln. REVPAR increases at Same-Store Systemwide Hotels Worldwide of 3% to 5% in constant dollars.
Note: Interval Leisure Group (IILG) announced it will to acquire HOT's vacation ownership business in a ~$1.5 bln deal
--> :details of Deal
Starwood Hotels to sell its vacation ownership business to Interval Leisure Group (IILG) in a ~$1.5 bln deal (20.77)
Interval Leisure Group (IILG) acquires Vistana Signature Experiences Starwood Hotels and Resorts Worldwide.
- The BODs of both companies have unanimously approved a definitive agreement under which a wholly owned subsidiary of ILG will acquire and then merge w/ Vistana.
- The combination, which will follow completion of the planned spin-off of Vistana from Starwood announced on February 10, 2015, has a total value to Starwood of ~$1.5 bln.
- The combination will result in Starwood shareholders owning ~55% of the combined company on a fully diluted basis, with existing shareholders of ILG owning ~45% of the combined company.
- Following completion of the transaction, ILG expects to continue its current dividend policy.
- Vistana will finance w/ new borrowings an estimated $132 mln cash distribution.
- Under the terms of the license agreement, Starwood will receive an annual base royalty fee of $30 mln plus 2% of vacation ownership interest sales.