Highlights – North America
Hotel occupancy levels surpassed 70% for all Starwood brands in 2013, with Four Points by Sheraton moving above this threshold, from 69.6% in 2012 to 71.0% occupancy last year. Sheraton was slightly lower at 70.6% occupancy in 2013, but also held the largest share of the group with 205 hotels and 77,548 rooms (45% of the total). Le Méridien registered the highest average occupancy level, which in contrast, held the smallest share of rooms, with 14 hotels and 3,225 rooms (2% of the total).
Average rate growth spanned 2.6% to 7.9% in 2013, with St. Regis & The Luxury Collection taking the top spot for growth. At 7.9%, this brand category surpassed the $340 rate threshold, and RevPAR was just under $250. Le Méridien also experienced formidable rate growth, at 5.5%. Le Méridien and Aloft held the number two and three spots for RevPAR growth in 2013, at 7.9% and 6.1%, respectively.
All Brands Surpass The 70% Occupancy Mark
All Starwood brands were able to obtain average occupancy levels above the 70% mark in 2013, a formidable feat given the depth and variety of hotels, markets, and price points that are held within the group. While maintaining these levels may be challenging in light of the planned new additions, these marks correctly point to opportunities for continued development given their popularity among individual travelers and meeting planners alike.
In the company’s February stock filing, Frits van Paasschen, CEO, remarked, “Starwood had a strong year in 2013. We exceeded our profit expectations, despite a tepid global business environment, exchange rate headwinds and the effect of having sold six hotels. Occupancies in North America reached record levels for the third straight quarter, and in a weak economic environment, occupancies in Europe remained high. In Latin America, Asia Pacific, Africa, and the Middle East, we delivered strong footprint and fee growth.”
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