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Strategic Hotels & Resorts (Strategic Hotels & Resorts) ROE % : 5.74% (As of Sep. 2015)


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What is Strategic Hotels & Resorts ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Strategic Hotels & Resorts's annualized net income for the quarter that ended in Sep. 2015 was $93 Mil. Strategic Hotels & Resorts's average Total Stockholders Equity over the quarter that ended in Sep. 2015 was $1,620 Mil. Therefore, Strategic Hotels & Resorts's annualized ROE % for the quarter that ended in Sep. 2015 was 5.74%.

The historical rank and industry rank for Strategic Hotels & Resorts's ROE % or its related term are showing as below:

BEE's ROE % is not ranked *
in the REITs industry.
Industry Median: 4.33
* Ranked among companies with meaningful ROE % only.

Strategic Hotels & Resorts ROE % Historical Data

The historical data trend for Strategic Hotels & Resorts's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Strategic Hotels & Resorts ROE % Chart

Strategic Hotels & Resorts Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -38.86 -0.82 -8.12 1.55 31.93

Strategic Hotels & Resorts Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.18 1.96 4.20 1.70 5.74

Competitive Comparison of Strategic Hotels & Resorts's ROE %

For the REIT - Hotel & Motel subindustry, Strategic Hotels & Resorts's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Strategic Hotels & Resorts's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Strategic Hotels & Resorts's ROE % distribution charts can be found below:

* The bar in red indicates where Strategic Hotels & Resorts's ROE % falls into.



Strategic Hotels & Resorts ROE % Calculation

Strategic Hotels & Resorts's annualized ROE % for the fiscal year that ended in Dec. 2014 is calculated as

ROE %=Net Income (A: Dec. 2014 )/( (Total Stockholders Equity (A: Dec. 2013 )+Total Stockholders Equity (A: Dec. 2014 ))/ count )
=344.483/( (710.513+1447.457)/ 2 )
=344.483/1078.985
=31.93 %

Strategic Hotels & Resorts's annualized ROE % for the quarter that ended in Sep. 2015 is calculated as

ROE %=Net Income (Q: Sep. 2015 )/( (Total Stockholders Equity (Q: Jun. 2015 )+Total Stockholders Equity (Q: Sep. 2015 ))/ count )
=93.044/( (1578.418+1661.747)/ 2 )
=93.044/1620.0825
=5.74 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2015) net income data. ROE % is displayed in the 30-year financial page.


Strategic Hotels & Resorts  (NYSE:BEE) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2015 )
=Net Income/Total Stockholders Equity
=93.044/1620.0825
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(93.044 / 1417.736)*(1417.736 / 3740.168)*(3740.168 / 1620.0825)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.56 %*0.3791*2.3086
=ROA %*Equity Multiplier
=2.49 %*2.3086
=5.74 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2015 )
=Net Income/Total Stockholders Equity
=93.044/1620.0825
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (93.044 / 106.196) * (106.196 / 169.484) * (169.484 / 1417.736) * (1417.736 / 3740.168) * (3740.168 / 1620.0825)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8762 * 0.6266 * 11.95 % * 0.3791 * 2.3086
=5.74 %

Note: The net income data used here is four times the quarterly (Sep. 2015) net income data. The Revenue data used here is four times the quarterly (Sep. 2015) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Strategic Hotels & Resorts ROE % Related Terms

Thank you for viewing the detailed overview of Strategic Hotels & Resorts's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Strategic Hotels & Resorts (Strategic Hotels & Resorts) Business Description

Traded in Other Exchanges
N/A
Address
Strategic Hotels & Resorts Inc was incorporated in Maryland in January 2004 to acquire and asset-manage upper upscale and luxury hotels that are subject to long-term management contracts. The Company operates as a self-administered and self-managed real estate investment trust (REIT) managed by its board of directors and executive officers and conduct its operations through the Company's direct and indirect subsidiaries including SH Funding. It does not operate any of its hotels directly; instead it employs internationally known hotel management companies to operate them for the Company under management contracts or operating leases. As of February 26, 2014, the Company wholly owns or leases 14 hotels. The Company's existing hotels are operated under the widely-recognized upper upscale and luxury brands of Fairmont, Four Seasons, Hyatt, InterContinental, JW Marriott, Loews, Marriott, Ritz-Carlton and Westin, The Hotel del Coronado is operated by a specialty management company, KSL Resorts. The customers include individual or group business and leisure travelers.
Executives
Gellein Raymond L Jr director, officer: President and CEO STARWOOD HOTELS & RESORTS WORLDWIDE, INC, 1111 WESTCHESTER AVENUE, WHITE PLAINS NY 10604
Robert P Bowen director
Sheli Z Rosenberg director C/O EQUITY GROUP INVESTMENTS, L.L.C., TWO NORTH RIVERSIDE PLAZA, SUITE 600, CHICAGO IL 60606
Eugene F Reilly director C/O AMB PROPERTY CORP, PIER I BAY 1, SAN FRANCISCO CA 94111
David William Johnson director 4100 MIDWAY ROAD, SUITE 2115, CARROLLTON TX 75007
Diane M Morefield officer: EVP & CFO 200 W. MADISON STREET, SUITE 1700, CHICAGO IL 60606
Richard D Kincaid director EQUITY OFFICE PROPERTIES, CHICAGO IL 60606
Laurence S Geller director, officer: President and CEO 77 WEST WACKER DRIVE, CHICAGO IL 60601
Thomas H Patrick other: Member of 10% Owner Group C/O BALDWIN & LYONS INC, 1099 NORTH MERIDIAN STREET, INDIANAPOLIS IN 46204
James E Mead officer: Ex. VP & CFO C/O STRATEGIC HOTEL CAPITAL, INC., 77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Security Capital Research & Management Inc other: Previously was 10% owner 10 SOUTH DEARBORN STREET, SUITE 1400, CHICAGO IL 60603
Edward C Coppola director THE MACERICH COMPANY, 401 WILSHIRE BVLD., STE. 700, SANTA MONICA CA 90401
Michael W Brennan director C/O FIRST INDUSTRIAL REALTY TRUST, 311 SOUTH WACKER DR, STE. 4000, CHICAGO IL 60606
Jonathan A Langer other: Former Director C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Prudential Financial Inc director 751 BROAD ST, NEWARK NJ 07102

Strategic Hotels & Resorts (Strategic Hotels & Resorts) Headlines