FAQ: When will we know any 2009 hotel category changes? Answer: before March 2
Feb 3, 2009, 11:46 am
#61
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my gosh.. so exciting.. is it a boy or a girl??
Feb 4, 2009, 3:49 pm
#62
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In general my speculation would be that there will be a small to moderate amount of movement in cat 3 & 4 hotels this year, some up some down. I would expect to see some cat 6 & 7 drop 1 category however. ... I would not expect much if any migraton down to cat 1 or 2 however as this is not really the market segment that Starwood guns for.
I base this upon the fact that Revpar (revenue per available room) fell 12% in 2008 per Starwood's annual report released yesterday. They expect a further decline of 12%during 2009. That's a drop of about 20%+ cumulative. (A drop from 5 to 4 or 4 to 3 is about a 30% drop or so, which may take two years to accumulate) The weakness is expected to be most acute in the luxury segment, spreding to upper upscal as well.
I base this upon the fact that Revpar (revenue per available room) fell 12% in 2008 per Starwood's annual report released yesterday. They expect a further decline of 12%during 2009. That's a drop of about 20%+ cumulative. (A drop from 5 to 4 or 4 to 3 is about a 30% drop or so, which may take two years to accumulate) The weakness is expected to be most acute in the luxury segment, spreding to upper upscal as well.
1) Total up the monthly Revpar averages in local currency, say BHT or GBP, and then convert to USD at the current 2009 exchange rate. or
2) Covert each month of hotel Revpar at the exchange rate that applied during that month. or
3) Use the average exchange rate for the year.
Given the abrupt drop in MXN, GBP, CND, AUD, and to a lesser extent EUR at the end of 2008 this could make a huge difference. Under scenario 1, current exchange rates alone might set many hotels back to 2006 categories, so we could even see the Sheraton Belgravia or the Mexican Haciendas back down to a Cat 4, or the Sheraton Wall Center back to a Cat 3. (Unfortunately the BHT seems to be holding on well, as there's a lot of Cat 3 Thai hotels I'd love to see back in Cat 2 and the disruptions there probably happened too late in the year to really hit 2008 averages).
But as the dollar rallied late in the year, in scenarios 2 and 3 we would have to wait until next year to fully enjoy the dollar's recovery -- if it persists.
Feb 4, 2009, 6:53 pm
#63
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Does closing some floors raise REVPAR ?
Would a hotel be able to raise its REVPAR for the purposes of Starwood category allocation by closing off a few floors when times are hard?
I'm thinking of some properties in Thailand, in particular, The Westin.
With very low occupancy-rates mothballing a few floors reduces the number of rooms available.
I'm thinking of some properties in Thailand, in particular, The Westin.
With very low occupancy-rates mothballing a few floors reduces the number of rooms available.
Feb 4, 2009, 7:00 pm
#64
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Join Date: Jul 2003
Posts: 11,377
In another thread, William stated that ADR (average daily rate) was the key figure for property levels, not RevPAR (as I had thought it was as well).
Reducing rooms would of course increase RevPAR.
Here's the post: http://www.flyertalk.com/forum/10520172-post11.html
Reducing rooms would of course increase RevPAR.
Here's the post: http://www.flyertalk.com/forum/10520172-post11.html
Last edited by soitgoes; Feb 4, 2009 at 7:11 pm
Feb 6, 2009, 7:29 am
#65
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I couldn't decide whether to post this in a thread regarding category changes or in this "city thread." Mods, please reposition, if desired.
I was told this week by someone from Starwood who should know...
The W San Diego and The US Grant will both be changing categories in the upcoming annual recategorization. Moving down from Cat5 to Cat4. This employee believes that these are the only changes among the San Diego properties.
I was told this week by someone from Starwood who should know...
The W San Diego and The US Grant will both be changing categories in the upcoming annual recategorization. Moving down from Cat5 to Cat4. This employee believes that these are the only changes among the San Diego properties.
Last edited by SanDiego1K; Feb 6, 2009 at 9:35 am Reason: Copied from San Diego master thread
Feb 6, 2009, 10:24 am
#66
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I couldn't decide whether to post this in a thread regarding category changes or in this "city thread." Mods, please reposition, if desired.
I was told this week by someone from Starwood who should know...
The W San Diego and The US Grant will both be changing categories in the upcoming annual recategorization. Moving down from Cat5 to Cat4. This employee believes that these are the only changes among the San Diego properties.
I was told this week by someone from Starwood who should know...
The W San Diego and The US Grant will both be changing categories in the upcoming annual recategorization. Moving down from Cat5 to Cat4. This employee believes that these are the only changes among the San Diego properties.
Feb 11, 2009, 2:37 pm
#67
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Are we ever going to find out when the new categories will be out??
I need to know now!
I need to know now!
Feb 11, 2009, 2:39 pm
#68
Company Representative - Starwood
Join Date: Nov 2000
Location: Austin, Texas
Programs: Marriott Employee Level
Posts: 31,593
Yes. Sometime between now and March 2nd. 
LOL. Patience, grasshopper. 
Best regards,
William R. Sanders
Online Guest Feedback Coordinator
Starwood Hotels & Resorts Worldwide
[email protected]
I need to know now!
Best regards,
William R. Sanders
Online Guest Feedback Coordinator
Starwood Hotels & Resorts Worldwide
[email protected]
Feb 11, 2009, 2:47 pm
#69
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Sounds uncannily similar to the timings of the Plat awards being available for use. Is it because SPG don't want us to waste our free weekend night award on a lesser hotel when some soon to be devalued category 6 hotels are on the way down to cat 5?
Well, we can wish at least....
Well, we can wish at least....
Feb 11, 2009, 2:55 pm
#70
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Sounds uncannily similar to the timings of the Plat awards being available for use. Is it because SPG don't want us to waste our free weekend night award on a lesser hotel when some soon to be devalued category 6 hotels are on the way down to cat 5?
Well, we can wish at least....
Well, we can wish at least....
Feb 11, 2009, 3:12 pm
#71
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Thanks for heads up ^
Feb 11, 2009, 4:58 pm
#72
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Feb 11, 2009, 8:00 pm
#73
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Will there be time between the announcement of the new categories so if a hotel we want is going up, we can book it before the change takes place?
Feb 11, 2009, 8:32 pm
#74
Join Date: May 2005
Posts: 2,894
A handful of India hotels' category level must be re-adjusted...
Ex) ITC Kakatiya Hyderabad / LM Ahmedabad (it's crazy that this property is a CAT 4!!!) - it's terrible property.
I hope the economic downturn would mean majority of hotels will be re-categorized to lower categories. But I guess this won't happen... since CAT is mostly based on their average room rate. 
Ex) ITC Kakatiya Hyderabad / LM Ahmedabad (it's crazy that this property is a CAT 4!!!) - it's terrible property.
I hope the economic downturn would mean majority of hotels will be re-categorized to lower categories.
But I guess this won't happen... since CAT is mostly based on their average room rate.
Feb 11, 2009, 8:34 pm
#75
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In the past the notice has been about 10 days in advance but there are no guarantees unless you have points to book it now. If the category stays the same, you can cancel and rebook later (if you don't want to tie up your points) or if the category goes down you can always "reprice" it to the lower point level.