Management fees, franchise fees and other income were $219 million, up $17 million, or 8.4% (10.1% in constant dollars) compared to the third quarter of 2011. Management fees increased 7.0% to $122 million and franchise fees increased 10.4% to $53 million.


During the third quarter of 2012, the Company signed 25 hotel management and franchise contracts, representing approximately 4,800 rooms, of which 18 are new builds and seven are conversions from other brands. At September 30, 2012, the Company had approximately 370 hotels in the active pipeline representing approximately 95,000 rooms.

During the third quarter of 2012, 20 new hotels and resorts (representing approximately 6,500 rooms) entered the system, including Sheraton Macao Hotel (China, 1,796 rooms), ITC Grand Chola – a Luxury Collection Hotel (India, 600 rooms), W Singapore – Sentosa Cove (Singapore, 240 rooms), Sheraton Vitoria Hotel (Brazil, 234 rooms), and Sheraton Tampa East Hotel (Florida, 265 rooms). Additionally, during the quarter, the Company reopened its owned Aloft San Francisco Airport which was converted from an unbranded hotel. Four properties (representing approximately 800 rooms) were removed from the system during the quarter.

Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR at Starwood branded Same-Store Owned Hotels increased 2.3% in constant dollars (decreased 2.2% in actual dollars) when compared to 2011. REVPAR at Starwood branded Same-Store Owned Hotels in North America increased 0.6% in constant dollars (decreased 0.5% actual dollars). Internationally, Starwood branded Same-Store Owned Hotel REVPAR increased 3.8% in constant dollars (decreased 3.7% in actual dollars).

Revenues at Starwood branded Same-Store Owned Hotels Worldwide increased 1.5% in constant dollars (decreased 2.9% in actual dollars) while costs and expenses increased 1.0% in constant dollars (decreased 3.1% in actual dollars) when compared to 2011. Margins at these hotels increased approximately 10 basis points.

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