The travel slump sparked by the recession pushed profit down 64 per cent at Starwood Hotels & Resorts Worldwide Inc, which has been cutting room rates, especially at its high-end hotels, to try to recoup business. The owner of Sheraton and W brands, like other hotel operators, has been trimming its own costs and slashing room rates to respond to the sharp downturn in business and leisure travel as companies and consumers try to rein in costs.
According to a report in hotelnewsresource, Frits van Paasschen, CEO, Starwood Hotels & Resorts Worldwide Inc conceded that Starwood’s most expensive hotels have been squeezed, but he remained upbeat that business would pick up when the economy recovers. He noted half the company’s hotels are outside the US and will benefit sooner if other areas of the world see economic recovery more quickly.
He said, “Our owned hotels are skewed toward the high end and have been particularly hard-hit over the past twelve months, implying they are poised for a strong rebound as the world economy recovers.” |