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Starwood Reports Fourth Quarter 2012 Results

For the full year 2012, total vacation ownership revenues increased 3.7% to $587 million when compared to the full year 2011, primarily due to increased revenues from resort operations. The number of contracts signed decreased 0.9% and the average price per vacation ownership unit sold decreased 0.9% to approximately $14,800.

Residential

During the fourth quarter of 2012, the Company’s residential revenues were $103 million compared to $127 million in 2011. The Company realized residential revenues from Bal Harbour of $99 million and generated EBITDA of $32 million, compared to revenues of $121 million and EBITDA of $33 million in the same period of 2011. During the fourth quarter of 2012, the Company closed sales of 27 units at Bal Harbour and realized incremental cash proceeds of $96 million associated with these units. From project inception through December 31, 2012, the Company has closed contracts on approximately 73% of the total residential units available at Bal Harbour, and realized residential revenue of $810 million and EBITDA of $161 million.

Selling, General, Administrative and Other

During the fourth quarter of 2012, selling, general, administrative and other expenses increased 5.2% to $101 million compared to $96 million in 2011 primarily due to severance costs, in 2012, of approximately $9.0 million.

The Company has recently completed certain changes to its organization structures in its Europe, Africa, and Middle East division and its Americas division. Some of those changes were made in the fourth quarter of 2012 and the Company recorded approximately $9.0 million in severance costs which is included in selling, general and administrative costs for the fourth quarter of 2012. Other changes will take place in the first quarter of 2013 and the Company expects to record severance costs of approximately $10.0 million in selling, general and administrative costs in the first quarter of 2013.

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