WHITE PLAINS, N.Y. (TheStreet) -- Starwood Hotels & Resorts Worldwide (HOT) beat profit and sales expectations on strong room revenue growth in the second quarter as demand for both business and leisure travel picked up.
Starwoood also forecast third-quarter and full-year earnings in line with analysts" expectations. The hotel operator, which franchises hotels under the Westin, W and Sheraton brands, among others, expects third-quarter earnings to come in between 36 cents and 40 cents a share, with 2011 profit of between $1.67 and $1.77 a share.
Analysts were expecting Starwood to earn 46 cents in the third quarter and $1.71 a share for the year.
In the second quarter, Starwood earned $97 million, or 50 cents a share, up 44.8% from year-earlier earnings of $67 million, or 35 cents a share. Revenue rose 11% to $1.43 billion. RevPAR -- or revenue per available room, a key metric in the hotel industry that multiplies a property's room rate by its occupancy rate -- grew 11.8% year over year. Shares of Starwood were unchanged in premarket trading after closing lower at $55.71 in Wednesday's session. On Wednesday , Wyndham Worldwide (WYN) beat profit expectations thanks to strong room revenue and raised its full-year outlook as leisure travel picks up steam.
RevPAR jumped 9.7%. Wyndham franchises lower-priced hotel chains like Days Inn, Ramada and Super 8, which cater more to leisure travelers. Marriott International (MAR), which caters more to corporate clients and business travelers, grew revPAR by 6.8% on a worldwide basis in its recent quarter, including 7.3% in international markets and 6.6% in North America. Host Hotels & Resorts (HST) said revPAR at its hotels increased 6.7% in the quarter. >>For upcoming earnings and estimates, see our Earnings Calendar. --Written by Miriam Marcus Reimer in New York.
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