Old Feb 20, 14, 2:46 pm
Join Date: Feb 2004
Location: CLE
Programs: UA GS+LT UC, AA LT PLT, Fairmont LT PLT, SPG PLT, Hilton Diamond, Hyatt Diamond, Avis CHM.
Posts: 4,056
Originally Posted by CLEguy View Post
Thinking through the strategy here, I'd honestly be surprised if properties have much to do with it. Think of it this way. Properties are compensated one of two ways for award stays: marginal cost if not sold out, or at/near ADR if occupancy is 90-95%+.

So the hotel itself doesn't really care what its category is (or shouldn't at least). They're getting paid the same regardless. It's Starwood that cares, since they have to manage the number of points outstanding, the value of those points from a liability perspective, and how much their various partners pay to acquire the points.
It's 95% or better. I'm sure the hotel cares as they're not going to be at 95% most nights.
Anyway SPG uses some unknown formula for predicted ADR which I'm sure the hotels have influence on.
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