Starwood warns on world economy

Starwood Hotels and Resorts warned today that the slowdown in the world economy will dent its full-year profits. It issued the warning as it announced its financial results for the first three months of 2001. Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed by 6% to $355m (247m), while net profits increased by 17% to $62m (£43m). Turnover increased by 2% to $1b (£700m). Despite unfavourable currency conversion rates, the strength of Starwood's European business was reflected in a 24% increase in EBITDA to $22m (£15m), against an 8.7% rise in North America to $214m (£149m). Revenue per available room increased by 10.9% in Europe, 4.3% in North America and 3.1% worldwide. Starwood owns, operates and franchises hotels, resorts, and timeshare properties under the St Regis, Luxury Collection, Sheraton, Westin, Four Points, W and Starwood brand names. It has more than 725 properties in 80 countries.