Starwood records good 1st quarter performance despite accounting charge

Starwood, one of the USA’s biggest hotel companies, wrote off $72m (£40m) during the first quarter due to a new accounting rule.

Adoption of the rule change, which relates to time-share transactions, reduced net income in the first quarter to 31 March to $5m (£2.77m), compared with $79m (£43.8m) a year ago.

But despite this, and the sale of 16 hotels during the period as well as properties in New Orleans and Mexico weathering hurricanes, turnover increased to $822m (£461m), compared with $813m (2005: £456m) a year ago.

Operating profit was $155m (£86m), compared with $148m (£82m) a year before.

Chief executive Steven Heyer said it had been an outstanding quarter. “We beat our growth expectations in all business segments,” he said.

Since the start of 2006, the group has returned over $3.5b (£1.96b) in value to shareholders, mainly from the sale of property assets to property company Host.

Company website >>

Starwood sells 35 properties >>

By Emily Manson

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