Starwood's Q2 results show softness for luxury brands

|

Starwood's second-quarter financial report showed that demand fell for rooms at its luxury hotels (St. Regis, Luxury Collection and W).

At constant dollars, W's revenue per available room (RevPAR) fell 2.2% from a year earlier, while RevPAR for the St. Regis and Luxury Collection hotels declined 0.5%.

Starwood's other brands performed better, enabling the company to increase overall RevPAR by 1.4%. Aloft (3.6%) and Westin (3.2%) led the way, followed by Four Points (2.3%) and Sheraton (1.6%). Le Meridien's RevPAR was essentially flat, falling 0.3%.

North America was Starwood's strongest region with a 3.4% RevPAR increase. Europe was up 1.1%, and Asia was up 2.9% when factoring out China.

RevPAR plunged 9.7% in Africa and the Middle East and 5.1% in Latin America. China was down 1.8%

Starwood reported that its second-quarter revenue was little-changed at $1.25 billion. The company had a net loss of $263 million, compared with net income of $136 million a year earlier. Starwood took a $241 million loss on dispositions and $114 million in impairment charges in this year's second quarter.
 

Starwood won’t host an earnings conference call with analysts, citing its pending acquisition by Marriott International. Starwood said that transaction is expected to close in the coming weeks.

The company forecasted that third-quarter RevPAR growth would accelerate to about 5%.

Comments

From Our Partners


From Our Partners

2021 Ireland Luxury Marketplace
Ireland Luxury Marketplace: New Webinar Series
Watch Now
Los Cabos dining district
Los Cabos' 23400 District
Read More
2021 WOL Webinar
The World of Luxury for 2022
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI