Jonathan Yap, Singapore (2009-10-23)

STARWOOD Hotels and Resorts aims to keep corporate rates flat in 2010 as companies hesitate to commit group bookings.

CFO Vasant Prabhu said 2010 group bookings were below 2009's low level, indicating corporate customers were only comfortable committing for 2011..." />
 
Monday . June 17 . 2019
         
 
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Starwood eyes flat corporate rates in 2010
 
Jonathan Yap, Singapore (2009-10-23)

STARWOOD Hotels and Resorts aims to keep corporate rates flat in 2010 as companies hesitate to commit group bookings.

CFO Vasant Prabhu said 2010 group bookings were below 2009's low level, indicating corporate customers were only comfortable committing for 2011 and 2012.

"Customers in some cases are seeking rate reductions for 2010. We (intend) to keep rates flat year-over-year, but we will not know how this all ends up for a few more weeks."

Prabhu said Q3 results indicated the group had seen the "worst of the recession".

"Rate is now the primary driver of the year-over-year decline. The rate of recovery was strongest in Asia ex-India after swine flu abated. We saw a sharp recovery in most Asian gateway cities. Business in secondary Chinese cities was particularly strong."

Asia-Pacific systemwide properties (including franchised hotels) registered an 18.6 per cent decline in RevPAR to US$87.7, an 18.2 per cent drop in average daily rate to US$140.46 and a 0.3 per cent fall in occupancy to 62.4 per cent.

China RevPAR improved from negative 30 per cent in Q2 to negative 20 per cent in Q3. However, India RevPAR was down 37 per cent, with the decline "unlikely to abate near term", said CEO Fritz Van Paasschen.

 
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