Hawaiian Telcom's residential and business telephone customers can expect to see a $21.95 credit on their bills in September or October.

The credits, which total $12 million, were among 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.

Meanwhile, Verizon Communications Inc. announced 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.

STARWOOD PROFIT FORECAST RAISED

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, N.Y.-based Starwood said. Sales climbed 14 percent to $1.56 billion on higher room rates and time-share revenue.

Starwood increased rates an average of 7.5 percent, helped by markets including New York and Hawai'i, where demand is rising as some competing hotels have become condominiums.

The company's time-share revenue rose 66 percent, led by gains in Hawai'i and Florida.

KAHALA SALE LIFTS MANDARIN PROFIT

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

A major contributor was the $47.9 million earned from the sale of a 40 percent interest in the Kahala Mandarin Oriental Hawaii. Excluding the gain, profit would have been $19.2 million.