Starwood Hotels & Resorts Worldwide Inc. said earnings and revenue slid in its latest quarter, thanks in part to losses on assets and impairments, and continued foreign-exchange headwinds.
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Still, adjusted earnings per share topped expectations. The company, based in Stamford, Connecticut, operates brands including Westin, W and St. Regis.
Carrie Bloom, a spokeswoman for Starwood Hotels, declined to comment. This was higher than $121 million, or $0.66 per share, in last year’s third quarter.
The combination will result in Starwood shareholders owning approximately 55% of the combined company on a fully diluted basis, with existing shareholders of ILG owning approximately 45% of the combined company.
-Earnings Growth (Y-o-Y): 3.3%.
Analysts had expected the company to earn $0.72 per share, according figures compiled by Thomson Reuters.
The U.S. government was unlikely to step in and stop the proposed transaction, although it might shift sensitive meetings out of Starwood properties or ask for particular hotels to be sold if they were near sensitive military institutions, said Paul Marquardt, a Cleary Gottlieb lawyer who is an expert on foreign investment in the United States.
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But as USA hotel companies go, Starwood is the least American. And Starwood has struggled to make its mark in the midmarket realm.
