Starwood Hotels & Resorts Worldwide Inc.’s fourth-quarter profit dropped 51 percent on impairment charges and other items, but its adjusted results beat analysts’ expectations.

The lodging company, which operates hotels under the St. Regis, Westin, Sheraton and other brands, said this morning that its revenue rose 14 percent, also beating Wall Street estimates. Its first-quarter earnings guidance also topped analysts’ average expectation.

Its shares rose $1.95, or 3.5 percent, to $57 in premarket trading.

The Stamford, Conn.-based company said that economic conditions in developed markets remain uncertain, but that the lodging supply situation is very favorable.

Many hotels operators have pulled back on new hotel openings in the U.S. since the recession, as people started to travel less frequently or take shorter trips in order to save money.

The picture is brighter in emerging markets, where Starwood says economic growth has been strong, which has led to increased demand for hotels and a need for more supply.

Starwood reported net income fell to $167 million, or 85 cents per share, for the period ended Dec. 31. That’s down from $339 million, or $1.78 per share, a year ago.

Analysts surveyed by FactSet forecast adjusted earnings of 57 cents per share.

Revenue increased to $1.53 billion from $1.34 billion, which beat the $1.42 billion that Wall Street expected.  (AP)