September 29 2022, Kimpton Fitzroy London
Friday 30 September 2022, JW Marriott Grosvenor
21 November 2022, Hilton London Metropole
RevPAR drops 20.3% over year
Starwood Hotels reported a slump in net income for the third quarter to $40m, compared to $113m in the same period in 2008.
The chain whose brands include Sheraton, Westin and W, said income from continuing operations, excluding special items, was $26m in the third quarter of 2009 compared to $129m in 2008.
Starwood reported an across the board fall in revPAR (revenue per available room) during the three months to the end of September compared with a year ago.
It fell 19.7% in North America, 22.1% in Europe, 31.3% in Latin America and 17.9% in Africa and the Middle.
The hotel brands also reported decreases: Westin 17.9%, Sheraton 19.9%, Four Points by Sheraton 22.3%, Le Méridien 22.8%, W Hotels 22.9%, and St. Regis/Luxury Collection 23.2%.
Frits van Paasschen, Starwood's ceo, said: "Over the past twelve months we have focused on cost containment and debt reduction, which positions us well to ‘Own the Upswing'.
Our increasingly fee-based, capital-efficient business model will grow as revPAR recovers and as our pipeline translates into unit additions.
"Our owned hotels are skewed towards 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.
"And with half of our hotels outside of the United States, we will benefit from secular growth in international markets."
Starwood said it expected revPAR to fall by between 9%-12% in the three months to December 31 and management and franchise revenues by 8%-10%.
For 2010, the chain said: "It is very difficult at this time to provide any definitive point of view on 2010.
"While business conditions have clearly stabilised, it is very hard to forecast the pace of recovery, especially rate.
"While group bookings have picked up for 2011 and beyond, booking pace for 2010
has continued to lag below 2009.
"And booking windows for both transient and group business have shortened considerably."