Starwood will raise all its hotel rates 5 percent
WHITE PLAINS, N.Y. Starwood Hotels & Resorts Worldwide Inc. said yesterday it will raise retail pricing 5 percent at all owned, managed and participating franchised hotels and resorts, effective May 1.
Starwood noted that its announcement of the price increase follows yesterday's news about the company's unexpectedly strong first-quarter results. Starwood also cited improving demand growth and favorable supply fundamentals over both the short term and long term.
Starwood yesterday said net income fell to $32 million, or 16 cents a share, from $62 million, or 30 cents, a year earlier. Excluding a $23 million gain, primarily for a foreign exchange transaction, profit from operations was $17 million, or 8 cents a share.
Starwood Hotels & Resorts, which is based in White Plains, N.Y., has more than 740 properties in more than 80 countries. There are 110,000 employees at its owned and managed properties.
Starwood is a fully integrated owner, operator and franchiser of hotels and resorts, including the St. Regis, the Luxury Collection, Sheraton, Westin, Four Points by Sheraton, and W brands as well as Starwood Vacation Ownership Inc., a leading developer and operator of vacation interval ownership resorts.
After the terrorist attacks caused global travel to fall for the first time since 1982, Starwood cut costs deeper than rivals did. Starwood ended 2001 with 11 percent fewer workers than in 2000, while Marriott had 8.5 percent fewer and Hilton 3.8 percent.