ExCeL London - 30 Sep - 01 Oct 2021
18 October 2021 - Virtual
28 October - London, UK
Company helped by tax benefit
Starwood Hotels reported in net income for the second quarter of 2009 of $134m, an increase over the £105m for the same period in 2008.
The improved figure came largely through a $120m benefit for a tax incentive programme in Italy.
For the three months, the worldwide hotel group said revenue at its managed and franchise properties fell by 18% compared to 2008 while revPAR (revenue per available room) dropped sharply a cross it portfolio.
Starwood, whose brands include Sheraton, W, Westin and St Regis, revPAR at its owned, leased and consolidated joint venture hotels fell by 27.7% worldwide compared to last year.
Regionally, revPAR fell 34.4% in Europe, 25.4% in North America, 36.6% in Latin America and19.9% in Africa and the Middle East.
Starwood said the fall in revPAR at the various brands was Sheraton (26.7%), Westin (25.6%), Le Méridien (31.3%) and W (30.5%).
Frits van Paasschen, Starwood's ceo, said the group had beaten expectation because of it "continued focus on managing costs and driving revenue."
He added: "Economic times like these afford us the opportunity to realign the organisation around a sustainably lower cost base while continuing to invest
in our brands and global growth opportunities.
"So while the current environment remains extremely challenging, we are committed to our long-term growth strategy and by the end of 2009, 60% of our 1,000 hotels will have been opened or renovated during the past three years."
Starwood said it expected its earning for the third quarter ending September 30 to about $165m-175m, with revPAR at its owned and leased properties down 22% compared with 2008 and revenue from managed and franchised properties down 16%.