BANGKOK: Starwood Hotels & Resorts Worldwide Inc. forecast first-quarter revenue below analysts' estimates, mainly due to a slow Asian economy and a strong US dollar.
Starwood's shares fell as much as 5 percent after the owner of the Sheraton and Westin hotel chains also reported a drop in fourth-quarter revenue and did not say if it had bought back shares in January.
An austerity drive by China's government and slow economic activity in the rest of Asia are weighing on US hoteliers' results. Chief Financial Officer Vasant Prabhu said on a conference call That anti-government protests in Thailand "significantly" hurt Starwood's business in January, while the company's performance in India was weak and will likely stay that way until after the general elections later this year.
A severe winter in the United States that delayed travel and a slight dip in consumer sentiment in January are also expected to hit hotel operators in the current quarter.
Hotel occupancy rates have dropped sharply in central Bangkok, where street protests began in November aimed at removing the government led by Prime Minister Yingluck Shinawatra. Starwood runs a Westin hotel and a Sheraton hotel close to one of the main protest sites at Asoke, making access for cars and tourist buses difficult.
Starwood ranks fourth among leading hotel brands in Thailand — behind Accor SA, Centara and Marriott International Inc — with just over 2 percent market share in 2012, according to Euromonitor.
The Thai Hotel Association said earlier this month that occupancy rates in the capital were hovering at around 50 percent, well below the usual 80 percent at this time of year — particularly as 2013 was a record year for tourists with more than 26 million visitors. Tourist arrivals last month were about 1 million, half the number in December.
Growth in tourism, which accounts for about a tenth of Thailand's GDP, more than halved to 10.7 percent in the fourth quarter year-on-year from a 26.1 percent jump in July-September.
Online travel agency Orbitz Worldwide Inc. forecast current-quarter revenue below analysts' estimates on Thursday.
Starwood said its revenue per available room (RevPAR) — a metric of hotel health, calculated by multiplying a hotel's average daily room rate by its occupancy rate — rose almost 8 percent at company-operated hotels in North America in January.
Hyatt Hotels Corp. is scheduled to report results on Friday, while Marriott and Hilton Worldwide Holdings Inc are expected to report over the next few weeks.
JP Morgan analyst Joseph Greff said Starwood was slowing the pace of its share buybacks. The company bought back $78.6 million in shares in the fourth quarter, and Greff estimated that $2.7 million of that was repurchased between Oct. 24 and end-December.
"The real disappointment is in the lack of buybacks in the (fourth quarter)," he said.
Starwood returned more than $500 million to shareholders in 2013 through stock buybacks and dividends, roughly similar to 2012. In contrast, Marriott returned over $1.3 billion to shareholders in 2012.
Starwood forecast first-quarter profit of 53-56 cents per share, well below the average analyst estimate of 63 cents per share, according to Thomson Reuters I/B/E/S.
"There's limited visibility across the lodging business and as such, we believe conservative guidance at this point is prudent," MLV & Co. analyst Ryan Meliker wrote in a note.
Starwood's RevPAR from hotels open at least one year in Asia, excluding China, dipped 3 percent in the fourth quarter. Excluding currency changes, RevPAR rose 8 percent in Asia, excluding China, CEO Frits van Paasschen said.
Total revenue fell 1.8 percent to $1.51 billion in the quarter, just shy of the average analyst estimate of $1.53 billion. Net income fell to $128 million, or 67 cents per share, from $142 million, or 72 cents per share, a year earlier.
Excluding items, Starwood earned 73 cents per share, above the 70 cents per share analysts had expected.
Starwood shares last traded down 2.24 percent at $75.36 on Thursday on the New York Stock Exchange. The stock has gained more than a fifth in the past 12 months, in line with the Dow Jones US Hotels index.
Starwood Hotels forecast exposes slow Asia economy
Starwood Hotels forecast exposes slow Asia economy
Major airlines suspend, reroute flights amid US-Israel strikes on Iran
- Saudia says decision taken in line with aviation safety and security standards
- Emirates said it temporarily suspended it's operations out of Dubai
RIYADH: Major international airlines across the Middle East and South Asia have suspended, canceled or rerouted flights following ongoing US-Israel attacks on Iran and the resulting airspace closures, according to official statements issued via X.
Saudia said in an official statement that it had canceled a number of flights due to developments in the region and the closure of airspace.
The airline said the decision was taken in line with aviation safety and security standards, noting that its Emergency Coordination Center is closely monitoring developments with relevant authorities.
Saudia urged passengers to verify the status of their flights before heading to the airport and said guests would be notified of updates through the contact details associated with their bookings.
The carrier added that further information would be announced in a subsequent statement if available.
بيان رسمي من #الخطوط_السعودية pic.twitter.com/CHfjKj9yLX
— Saudia Group | مجموعة السعودية (@SaudiaGroup) February 28, 2026
Air Arabia said its flights were experiencing cancellations, delays or rerouting as a result of the evolving situation and airspace closures.
The airline advised passengers to check the status of their flights before traveling to the airport by visiting its website or contacting its call center.
Customers booked on affected flights will be notified directly, the airline said, adding that further updates would be provided as the situation develops.
Air India announced a broader suspension, stating that “in view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended.”
The airline said it remains committed to maintaining the highest standards of safety for passengers and crew and will continue to assess the safety and security environment for flight operations, adjusting services proactively as required.
Air India said its teams would extend necessary support to passengers and advised customers to check flight status online or contact its 24/7 call center for assistance.
#TravelAdvisory
— Air India (@airindia) February 28, 2026
In view of the developing situation in parts of the Middle East, all Air India flights to all destinations in the Middle East have been suspended. We remain committed to maintaining the highest standards of safety for our passengers and crew. We will continue to…
All flight operations at Dubai International and Dubai World Central – Al Maktoum International are suspended until further notice, according to a post by Dubai Media Office on X.
Dubai-based Emirates reported that regional airspace closures had caused disruption to several of its flights and that the airline had temporarily suspended its operations from its hub Dubai.
The airline said it is actively monitoring the situation, engaging with relevant authorities and adjusting operations in line with the latest developments.
The carrier apologized to affected customers and said it is assisting them with rebooking, refunds or alternative travel arrangements, reiterating that the safety and security of passengers and crew remain its highest priority.
Due to multiple regional airspace closures, Emirates has temporarily suspended operations to and from Dubai.
— Emirates Support (@EmiratesSupport) February 28, 2026
Emirates urges customers to check https://t.co/Ucm3UswfVh and https://t.co/yehFUeWZQq for the latest updates before proceeding to the airport.
We are actively monitoring… pic.twitter.com/SLDC7iNaUN
Qatar Airways confirmed a temporary suspension of flights to and from Doha due to the closure of Qatari airspace.
The airline said it is working closely with government stakeholders and relevant authorities to support impacted passengers and will resume operations once the airspace reopens.
It warned that delays are anticipated when usual operations resume and said additional ground staff have been deployed at Hamad International Airport and other key airports to assist passengers.
Temporary Suspension of Qatar Airways Flights due to Qatari Airspace Closure
— Qatar Airways (@qatarairways) February 28, 2026
Qatar Airways Group confirms the temporary suspension of its flights to, and from, Doha due to the closure of Qatari airspace.
The airline is working closely with government stakeholders and the…
Meanwhile, Al Jazeera reported that British Airways had canceled flights to Tel Aviv and Bahrain, adding to the list of carriers adjusting operations.
Across their statements, airlines consistently cited airspace closures and safety considerations as the primary reasons for suspensions and disruptions, while urging passengers to monitor official channels for updates as the situation continues to evolve.
