Starwood Hotels Announces Losses of $107 Million
Tiffany PhillipsReports now show that Starwood Hotels has announce a net loss of more than $100 million between September and December of 2009. This is, of course, being compared to the net profit of $79 million the company made during the fourth quarter of 2008.
The revenue per available room for Starwood Hotels’ portfolio decreased by 7.2 percent compared to the fourth quarter of 2008. The revenue per available room of hotels in northern American fell by more than 10 percent.
The CEO of Starwood Hotels, Frits van Paasschen, said that despite these heavy losses, the results represented the best revenue per available room results seen by the company since the third quarter of 2008. Group and business transient bookings picked up in the last quarter of 2008, but booking windows remain short.
Management and franchise revenues also increase by 0.6 percent when compared to 2008. In the fourth quarter of last year, Starwood Hotels signed 20 hotel management and franchise contacts that represented some 4,200 rooms. The company also opened 24 new hotels with approximately 5,000 rooms.
Paasschen said that more growth is set for 2010. After being buffeted by headwinds throughout all of 2009, the portfolio for Starwood Hotels is set to begin a rebound this year. The hotel group did not make any predictions for 2010 – only saying that business conditions continue to improve from depressed levels. However, right now it is very hard to forecast the pace of recovery.
The company also said that late breaking business is a large component of what will drive their performance forward. Thus, looking for predictions for quarters in 2010 is particularly challenging.
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Filed under Business & Finance, Hotel Chains, Travel News, World News