DOW JONES NEWSWIRES
Starwood Hotels & Resorts (HOT) will cut rates by up to half
at nearly 600 of its global hotels and resorts in an effort to
boost slumping sales as businesses and consumers slash
spending.
While other hoteliers have stepped up discounts and promotions
to boost sagging results at hotels and time-share businesses, they
don't appear to match the size and scope of Starwood's offer.
Cruise lines have had some success with cutting rates and offering
packaged deals to shore up their booking amid the economic
downturn.
Participating locations in North America, Latin America and the
Asia Pacific Region will offer the reduced rates to travelers that
make reservations by Monday for stays between Thursday and Oct. 12.
Starwood operates 960 properties in 97 countries, including hotels
under the W Hotels, Westin, St. Regis and Sheraton brands.
Highly leveraged Starwood has been trying to raise capital and
pay off some of its debt. In April, President and Chief Executive
Frits van Paasschen said the company would be "unrelenting in our
efforts to pull cash out of our business and improve our financial
flexibility" while also getting guests to "return again and again
to our hotels and resorts."
The weak economy has squeezed the hotel industry for some time,
with time-share businesses also under pressure. The outlook for the
rest of the year is grim, despite efforts by hoteliers including
Starwood to cut costs.
Shares closed at $20.44 and didn't trade premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com
