Marriott International aims to increase 2013 average
negotiated corporate hotel rates by high single-digit percentages not only
through rate increases but also by weeding out "lower-rated" corporate
business and some government travel, president and CEO Arne Sorenson this
week said during the company's third-quarter earnings call.
"We essentially will not play with those accounts, or
will play with fewer hotels with those accounts," Sorenson said.
Sorenson cited the U.S. General Services Administration's
August decision to freeze 2013 lodging and meal per diem rates at current
levels. "Fortunately, at many full-service hotels in the United States,
business is strong enough that we will replace this government business with
other customers paying higher rates," he said.
Despite uncertain economic conditions, Sorenson said
discussions in current negotiations reflect a "modest increase" in
corporate hotel demand into next year. Marriott's group demand also is on the
rise. Group revenue on the books for 2013 for the Marriott brand in North
America is up more than 7 percent year over year, and average rates on that
business are up about 4 percent.
Corporate negotiations still are in their early stages, with
most of Marriott's first proposals out to corporate customers but few yet returned,
Sorenson said.