An August 25 www.bloomberg.com article by Nadja Brant reports that some luxury hotel chains are giving up some of their stars to save money. The report indicates that Hilton Hotels, InterContinental Hotels Group, and Starwood Hotels & Resorts Worldwide, the U.S. owner of the St. Regis and W Hotels, are among those chains that are letting some of their properties reduce their level of service and number of stars until the industry begins to recover.
According to the article, luxury hotel operators have struggled to attract customers as the recession deters vacationers and forces companies to slash their travel budgets. That should mean lower rates for high-end business and vacation travelers. It may also mean the loss of some amenities, but the hotels quoted in the article said they were trying to reduce costs without making too many obvious cuts to services.
Occupancy rates for luxury hotels worldwide fell to 57 percent in the year through July from 71 percent in the same period a year earlier, a bigger drop than for other types of accommodation, according to Smith Travel Research. The average daily room rates at the most luxurious hotels around the world dropped 16 percent to $245.13, the Tennessee-based hotel-data company estimates, and reported by Bloomberg. Prices for mid-range hotels fell about 13 percent to $87.12.
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