The credits, which total $12 million, were one of the conditions agreed to by Hawaiian Telcom when its parent company, the Carlyle Group, acquired Hawaiian Telcom's predecessor, Verizon Hawaii.

The credit applies to qualified residents and business retail access lines, as well as key and PBX lines and trunks that were in service at the time of the sale's closing in May and remain active until the processing of the credit in the September or October bills.

Verizon Hawaii sale boosts parent company's profit

Verizon Communications Inc.'s second-quarter profit rose 19 percent, but the big telephone company's results were slightly shy of Wall Street forecasts and signs of price competition clouded an otherwise powerful showing by Verizon Wireless.

Verizon said today it earned $2.11 billion, or 75 cents per share, in the three months ended June 30, including $336 million from the sale of the company's telephone operations in Hawai'i, as well as some tax benefits and expenses that roughly offset each other. Verizon earned $1.80 billion, or 64 cents per share, a year ago.

Mandarin Oriental earnings lifted by sale of Kahala hotel

Luxury hotel chain Mandarin Oriental says its first-half earnings were nearly 17 times higher than a year ago at $54 million due to a large one-time gain from its Hawai'i property and a rebound in tourist and business travel in core markets.

A major contributor was the $47.9 million earned from the sale of a 40 percent interest in the Kahala Mandarin Oriental, the company said. Excluding the gain, profit would have been $19.2 million. Revenue rose to $192.7 million in the half from $151.2 million a year earlier.

Mandarin Oriental International Ltd. runs the hotel by the same name in Hong Kong. It also runs hotels in Bangkok, Kuala Lumpur, New York City, Singapore, Paris and London.

Starwood raises 2005 profit forecast

Starwood Hotels & Resorts Worldwide Inc., owner of the Sheraton and Westin chains, raised its 2005 profit forecast after a surge in demand for lodging in Hawai'i and elsewhere lifted second- quarter sales.

Earnings from continuing operations will rise to $2.18 a share this year, more than its April forecast of $2.09, White Plains, New York-based Starwood said today in reporting second-quarter results. It didn't provide a prediction for net income. Sales climbed 14 percent to $1.56 billion on higher room rates and timeshare revenue.

Starwood increased rates an average of 7.5 percent, helped by markets including New York, where demand is rising as some competing hotels have become condominiums. The company's timeshare revenue rose 66 percent, led by gains in Hawai'i and Florida.