Starwood Hotels & Resorts on Thursday reported that
rates in the second quarter increased slightly across most brands compared with
the same period in 2009 as occupancy crept nearer to pre-recession levels.
For the quarter, worldwide occupancy increased by 7
percentage points to 68.8 percent, and North America occupancy increased by 6.7
percentage points to 64.6 percent. At the same time, average daily rate
increased by 1.6 percent worldwide and by 1.5 percent in North America, leading
to double-digit revenue per available room for Starwood.
Occupancy worldwide was up across all Starwood’s upscale and
luxury brands, and rates were up at every brand except St. Regis and the Luxury
Collection. Rates increased across all brands in North America with the
exception of Westin, where they declined by 0.3 percent. Le Meridien showed the
sharpest rate increase in North America, up 18.6 percent.
“Average daily rates are back into positive territory as
occupancy levels continue their steady ascent towards pre-crisis levels,”
according to Starwood CEO Frits van Paasschen. “We remain cautiously confident
in our near-term outlook and are bullish over the long-term given our growth
prospects.”
Van Paasschen noted that the company’s relaunch of the
Sheraton brand in North America was beginning to show results. For the brand in
the region, rates were up 1 percent and occupancy was up 6.8 percentage points.
Starwood opened 18 hotels, about
4,100 rooms, during the quarter, according to the company.