Looking forward to the next three years, our outlook assumes a cyclical recovery continues in mature markets and rapid growth continues in growth markets. Assuming annual Worldwide REVPAR growth of 5% to 7% through 2015, 4% to 5% net rooms growth and stable net cash flow from our vacation ownership business, Starwood would generate:
- Annual EBITDA growth of 10% to 12%
- Annual EPS growth of 16% to 20%
- Operating Cash Flow of approximately $2 billion over this time period (inclusive of cash proceeds from Bal Harbour units, exclusive of any sales of owned assets)
- Based on these assumptions and our ability to increase borrowing while maintaining our current investment grade rating, our capacity to invest in growth and return capital to shareholders would be approximately $3.0 billion to $3.3 billion not including cash generated from hotel sales over the three-year timeframe.
- Executing our Asset-Light strategy and achieving our goal of generating 80% of our earnings before SG&A from Management and Franchise fees by 2016 could generate an additional approximately $3 billion of cash proceeds from owned hotel sales.
A live webcast of the Investor & Analyst Day will begin on March 13, at 12:30 a.m. Eastern Daylight Time, or 8:30 a.m. local time in Dubai. The webcast will be available on Starwood's investor relations website at http://www.starwoodhotels.com/corporate/investor_relations.html; a replay of the webcast will be available beginning at 10 a.m. EDT on March 13 and run for 30 days.
About Starwood Hotels & Resorts Worldwide, Inc.Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,134 properties in nearly 100 countries and 171,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, Aloft®, and Element SM. The Company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, please visit www.starwoodhotels.com.