dhammer53
Jan 30, 09, 7:41 pm
Profits fell 46 percent at Starwood Hotels & Resorts Worldwide Inc. during the fourth quarter as business and leisure travelers booked fewer hotel stays in a softening economy.
The White Plains-based company, which operates 940 hotels in more than 100 countries under brands such as Sheraton and Westin, has taken steps to cut costs in response to the slowdown. Starwood said those actions have included "significant reductions" at several corporate departments and divisional headquarters, resulting in savings of $100 million.
Starwood added that it anticipates further cost reductions by the end of the first quarter. The company has declined to release the number of job cuts affecting the White Plains headquarters.
"We also scaled back our capital spending in all areas for 2009," Chief Executive Officer Frits van Paasschen said in a written statement. "While the outlook for 2009 remains challenging, we are prepared for the worst and confident that we will emerge from this downturn stronger than ever."
During the fourth quarter, net income dropped to $79 million, or 43 cents a share, from $146 million, or 74 cents a share, a year earlier. Revenues fell 17 percent to $1.3 billion.
Looking ahead to 2009, Starwood said that is hard to make forecasts because of the economic uncertainties.
"In the hotel business, the company is planning on a significant decline in worldwide (revenue per available room)," read a statement from Starwood. "The company also anticipates another difficult year in the vacation ownership business with declines in originated sales."
Starwood added that a cut of its annual dividend of 90 cents a share is likely in the uncertain ecnomic environment.
In past quarters, growth in international markets helped Starwood cushion softer business in North America. But during the fourth quarter, Starwood experienced weakness in nearly every part of the world.
More here... http://www.lohud.com/apps/pbcs.dll/article?AID=2009901300330
Can there be a silver lining for folks booking hotel rooms in SPG's dark cloud?
The White Plains-based company, which operates 940 hotels in more than 100 countries under brands such as Sheraton and Westin, has taken steps to cut costs in response to the slowdown. Starwood said those actions have included "significant reductions" at several corporate departments and divisional headquarters, resulting in savings of $100 million.
Starwood added that it anticipates further cost reductions by the end of the first quarter. The company has declined to release the number of job cuts affecting the White Plains headquarters.
"We also scaled back our capital spending in all areas for 2009," Chief Executive Officer Frits van Paasschen said in a written statement. "While the outlook for 2009 remains challenging, we are prepared for the worst and confident that we will emerge from this downturn stronger than ever."
During the fourth quarter, net income dropped to $79 million, or 43 cents a share, from $146 million, or 74 cents a share, a year earlier. Revenues fell 17 percent to $1.3 billion.
Looking ahead to 2009, Starwood said that is hard to make forecasts because of the economic uncertainties.
"In the hotel business, the company is planning on a significant decline in worldwide (revenue per available room)," read a statement from Starwood. "The company also anticipates another difficult year in the vacation ownership business with declines in originated sales."
Starwood added that a cut of its annual dividend of 90 cents a share is likely in the uncertain ecnomic environment.
In past quarters, growth in international markets helped Starwood cushion softer business in North America. But during the fourth quarter, Starwood experienced weakness in nearly every part of the world.
More here... http://www.lohud.com/apps/pbcs.dll/article?AID=2009901300330
Can there be a silver lining for folks booking hotel rooms in SPG's dark cloud?