by Michael J. Shapiro | November 03, 2010

Starwood Hotels & Resorts reported a net loss of $5 million in the third quarter, compared with a quarterly gain of $36 million a year ago. The loss is primarily due to a pretax charge of $55 million related to the loss on the sale of a hotel property. Systemwide revenue per available room, however, increased 10 percent over the third quarter in 2009, with noteworthy gains of 28.2 and 20.5 percent, respectively, reported in the Latin America and Asia Pacific regions. The company beat expectations, according to CEO Frits van Paasschen, "thanks to our top-line growth initiatives that powered third-quarter RevPAR results." He added that reductions in new hotel supply would increase overall demand and support the company's ability to recover room rates.