Adjusted 22 cents EPS vs. 17 cents consensus
* Cuts 2009 full-year outlook
* In discussions to sell non-core assets
* Shares jump over 9 percent (Adds CEO, CFO comment from earnings call, information on supply pipeline, updates shares)
By Deepa Seetharaman
NEW YORK, July 23 (Reuters) - Starwood Hotels & Resorts Inc (HOT.N) posted a better-than-expected profit on Thursday, buoyed by cost cuts, and its shares rose over 9 percent.
Costs and expenses for the second quarter fell by about one-fifth, driven by a more than 30 percent drop in general and administrative costs.
"We continue to beat expectations on cost containment," said Chief Executive Frits van Paasschen during a conference call with analysts.
The majority of those savings are sustainable, with the exception of one-time items and a reduction in bonuses to hotel managers this year, van Paasschen noted.
Shares rose $2.00, or 9.4 percent, to $22.28 in afternoon trading. Rival Marriott International Inc's (MAR.N) stock gained 6 percent, while Host Hotels & Resorts Inc (HST.N), which owns several Starwood properties, saw its stock gain 9 percent.
Starwood reported net income of $134 million, or 74 cents per share, compared with the year-earlier $105 million, or 56 cents per share.
The 28 percent jump in net profit was fueled a gain from a tax incentive program in Italy. Excluding that gain and $26 million in other charges, Starwood earned 22 cents a share.
The results surpassed analyst expectations of 17 cents per share, according to Reuters Estimates.
Revenue fell 23.4 percent to $1.2 billion, slightly lower than analysts' forecast.
But the hotelier, which operates the St. Regis, W and Sheraton chains, also cut its full-year outlook and offered third-quarter estimates that fell far short of analyst expectations.
Chief Financial Officer Vasant Prabhu during the call noted that business was stabilizing, but recovery remains slow.
* Cuts 2009 full-year outlook
* In discussions to sell non-core assets
* Shares jump over 9 percent (Adds CEO, CFO comment from earnings call, information on supply pipeline, updates shares)
By Deepa Seetharaman
NEW YORK, July 23 (Reuters) - Starwood Hotels & Resorts Inc (HOT.N) posted a better-than-expected profit on Thursday, buoyed by cost cuts, and its shares rose over 9 percent.
Costs and expenses for the second quarter fell by about one-fifth, driven by a more than 30 percent drop in general and administrative costs.
"We continue to beat expectations on cost containment," said Chief Executive Frits van Paasschen during a conference call with analysts.
The majority of those savings are sustainable, with the exception of one-time items and a reduction in bonuses to hotel managers this year, van Paasschen noted.
Shares rose $2.00, or 9.4 percent, to $22.28 in afternoon trading. Rival Marriott International Inc's (MAR.N) stock gained 6 percent, while Host Hotels & Resorts Inc (HST.N), which owns several Starwood properties, saw its stock gain 9 percent.
Starwood reported net income of $134 million, or 74 cents per share, compared with the year-earlier $105 million, or 56 cents per share.
The 28 percent jump in net profit was fueled a gain from a tax incentive program in Italy. Excluding that gain and $26 million in other charges, Starwood earned 22 cents a share.
The results surpassed analyst expectations of 17 cents per share, according to Reuters Estimates.
Revenue fell 23.4 percent to $1.2 billion, slightly lower than analysts' forecast.
But the hotelier, which operates the St. Regis, W and Sheraton chains, also cut its full-year outlook and offered third-quarter estimates that fell far short of analyst expectations.
Chief Financial Officer Vasant Prabhu during the call noted that business was stabilizing, but recovery remains slow.
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