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Industry: Lodging Company: Starwood Hotels and Resorts

Industry: Lodging Company: Starwood Hotels and Resorts. Sarah Weatherburn. About Starwood. 1,134 Properties Nearly 100 countries Aproximately 328,000 hotel rooms 13 Stand-alone Vacation ownership resorts and residential properties. Top 5 International Markets – % of Total Owned Revenues.

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Industry: Lodging Company: Starwood Hotels and Resorts

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  1. Industry: Lodging Company: Starwood Hotels and Resorts Sarah Weatherburn

  2. About Starwood • 1,134 Properties • Nearly 100 countries • Aproximately 328,000 hotel rooms • 13 Stand-alone Vacation ownership resorts and residential properties.

  3. Top 5 International Markets – % of Total Owned Revenues

  4. Valuation Using Market Multiples 1.) Select a set of relevant summary measures of performance 2.) Identify companies that are “comparable” to the target company 3.) For each comparable company, compute the ratio of the market value to the selected summary performance. 4.) Multiply the summary measure of performance for the target company by the market multiple.

  5. Comparable Companies

  6. Estimating Value Using NEA Multiple Enterprise Value = NEA / NEA market Multiple For Reference – Shares were trading at $79.47

  7. Estimating Value Using an EPAT Multiple Equity Value = Enterprise value – Value owed to debt holders (NFL) For Reference – Shares were trading at $79.47

  8. Estimating Value using a NI Multiple Equity Value = Net Income / NI market Multiple For Reference – Shares were trading at $79.47

  9. Valuation Using Industry-Based Multiple • RevPAR - Revenue per Available Room • Calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy percentage. • It may also be calculated by dividing a hotel's total guestroom revenue by the room count and the number of days in the period being measured.

  10. Valuation Using an Industry-Based Multiple For Reference – Shares were trading at $79.47

  11. My Recommendation

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