Starwood Hotels expects debt to decrease to $4.1 billion by year-end

By Sara Rosenberg

New York, July 24 - Starwood Hotels & Resorts Worldwide Inc. expects net debt to decrease by $1.1 billion by year-end as compared to year-end 2002.

"The highlight of our quarter and the first six months of 2003 must be the dramatic strengthening of our balance sheet, as more than $950 million of asset sales have closed," said Barry S. Sternlicht, chairman and chief executive officer, in a news release.

"Through asset sales and disciplined capital spending, we expect our net debt to decrease to $4.1 billion by year end from nearly $5.2 billion at year end 2002.

"Today, we have more than $1.3 billion of capacity on our credit facilities to take advantage of attractive opportunities as they may arise. We are cautiously optimistic that business will improve as we move into the fall and 2004."

Including the $950 million of asset sales that closed, the company anticipates total asset sales of $1.1 billion this year, company officials said in a conference call Thursday. Any further proceeds from asset sales will be used to further reduce debt, officials added.

Starwood Hotels is a White Plains, N.Y. hotel and leisure company.

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