Starwood Hotels & Resorts Worldwide reported third quarter results, which included rising net income and occupancy rates. Income from continuing operations was $147 million in the third quarter of 2012, compared to $165 million in the third quarter of 2011. Excluding special items, income from continuing operations was $114 million in the third quarter of 2012. Excluding special items, income from continuing operations was $118 million in the third quarter of 2011 and included a $35 million benefit associated with the favorable settlement of an IRS audit.

Net income was $170 million in the third quarter of 2012, compared to $163 million in the third quarter of 2011. Net income in the third quarter of 2012 benefited from a $23 million (net of tax) reversal of reserves, following the favorable settlement, in the quarter, of certain liabilities associated with a former ITT subsidiary.

“We delivered another solid quarter of EBITDA and EPS growth led by continued gains in both room rates and occupancy. Global revPAR grew nearly 5 percent in constant currency, despite a deceleration in the global economy,” said Starwood CEO Frits van Paasschen. “In fact, occupancy rose in all regions and is now reaching or exceeding peak levels in many markets around the world.”

Going forward, van Paasschen said results will be driven by two considerations: “The trajectory of the global recovery and whether it regains its momentum in 2013; and second, our ability to use our high-end, global brands, to get more than our fair share of the long-term growth in global travel.”

Income from continuing operations was $405 million in the nine months ended September 30compared to $344 million in the same period in 2011. Excluding special items, income from continuing operations was $376 million in the nine months ended September 30, 2012, compared to $273 million in the same period in 2011. Net income was $420 million and $2.14 per share in the nine months ended September 30, 2012 compared to $322 million and $1.66 per share in the same period in 2011.

Adjusted EBITDA was $895 million in the nine months ended September 30, 2012, which includes $125 million of EBITDA from the St. Regis Bal Harbour Resort residential project, compared to $711 million in the same period in 2011. Worldwide system wide revPAR for same-store hotels increased 4.7 percent in constant dollars (1.3 percent in actual dollars) compared to the third quarter of 2011. International system wide revPAR for same-store hotels increased 3.9 percent in constant dollars (decreased 3.0 percent in actual dollars).

During the third quarter, Starwood signed 25 hotel management and franchise contracts, representing approximately 4,800 rooms, of which 18 are new builds and seven are conversions from other brands. At Sept. 30, the company had approximately 370 hotels in the active pipeline representing approximately 95,000 rooms. During the third quarter, 20 new hotels and resorts (representing approximately 6,500 rooms) entered the system, including Sheraton Macao Hotel (China, 1,796 rooms), ITC Grand Chola-a Luxury Collection Hotel (India, 600 rooms), W Singapore-Sentosa Cove (Singapore, 240 rooms), Sheraton Vitoria Hotel (Brazil, 234 rooms) and Sheraton Tampa East Hotel (Florida, 265 rooms). In addition, the company reopened its owned Aloft San Francisco Airport, which was converted from an unbranded hotel during the quarter. Four properties (representing approximately 800 rooms) were removed from the system during the quarter.