Starwood Hotels & Resorts should achieve
high-single-digit percentage increases year over year for negotiated 2013
corporate transient rates, its executives said Thursday during the company's
third-quarter earnings call.
"Occupancies are about at peak levels, so it's time for
rate to go up, even more than it has," Starwood CFO Vasant Prabhu said. "We
feel good about how corporate rate negotiations are turning out."
Starwood president and CEO Frits van Paasschen added that
corporate transient demand is "robust" and looks to remain so through
2013. Some group bookings, however, have been put on hold as businesses wait to
see the results of such events as the U.S. presidential election and China's
government transition.
Although overall demand growth is decelerating around the
world, it will continue to rise in the near term, he said.
While Starwood's systemwide third-quarter average daily rate
was down 0.4 percent year over year, rates were up across most brands, offset
by a 4.8 percent ADR decrease at St. Regis/Luxury Collection and a 5.8 percent
decrease at Le Meridien. ADR was up at all brands in North America. Occupancy rose
at all brands, both within North America and globally.
Van Paasschen also noted that he was seeing a significant
increase in interest from hotel owners in developing new properties.