Average
daily rates at Starwood properties increased year over year by 4.5 percent in
North America and by 7.1 percent outside North America during the first
quarter, Starwood Hotels & Resorts reported.
Starwood's
rates rose in all regions, led by Asia-Pacific (11.3 percent) and Latin America
(7.5 percent). Occupancy increased across all regions except in Africa and the
Middle East. Revenue per available room increased by 10.4 percent worldwide,
and by 11.1 percent in North America.
Starwood president and CEO Frits van Paasschen said that for
the first time since the downturn, rate played as big as a role as occupancy in
RevPAR growth. Van Paasschen also said that midweek occupancy levels in gateway
cities are approaching 2007 levels, indicating strong corporate transient
demand, and that group business growth accelerated in March. During the
quarter, corporate group business increased 35 percent year over year, he said.
Net
income for the quarter decreased 7.1 percent year over year to $28 million.