Starwood Hotels are one of the bigger hotel companies in the world; include resorts, spas, and residences. As almost every hotel, Starwood Hotels faced a huge recession during the crisis. Their profits decreased dramatically and clients stopped traveling. Stock prices fell and as profits decreased costs seemed to be even higher. In general hotel industries had to deal with “the most dramatic declines in history”.
Recently, Starwood hotels after their effort not to shut down started facing a recovery. From last year, demand for hotel rooms stated increasing again and more and more clients were willing and able to travel. Even these are good news; hotels need a lot of time to overcome all the loss they had. Manager’s next step is to push up prices again as during the recession prices were cut. As read in the WSJ, Starwood Hotels now had earnings of $339 million compared to the $107 million loss they had a year earlier.
Posted by: Katerina Argyros
From: Wall Street Journal, Marketplace, p. B12, Friday February 4, 2011
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