STARWOOD HOTELS AND RESORTS

Starwood Hotels and Resorts

Starwood Hotels and Resorts

History

Starwood Hotels and Resorts Worldwide, Inc. is an American hotel and leisure companies operating in nearly 100 countries. The main business of the company consists of a worldwide network of hospitality, hotels, vacation ownership resorts and residential complexes serving luxury and upscale market. It consists of two operating segments: hotels and vacation ownership and residential. Hotel segment is a worldwide network of owned, leased and consolidated joint venture hotels and resorts operates mainly under the brand names By including St. Regis ®, The Luxury Collection ®, Sheraton ®, Westin ®, W ® Hotel Le Meridien ®, Four Points ®, Sheraton, Aloft ® and the element ®, as well as hotels and resorts, which are managed or franchised in exchange for a fee. The company recorded revenues of $ 4,712 million during the fiscal year ending December, 2009 (2009), a decrease of 18.1% over 2008. The decline in the industry worldwide housing is a major cause of declining revenues of the company. Operating profit was $ 26 million in fiscal 2009, decreased 95.7% compared with 2008.The net profit was $ 73 million in fiscal 2009, decreased 77.8% compared with 2008(Starwood Hotels & Resorts Worldwide, Inc, 2009).

Statistical data

Starwood is a global and prominent name in the lodging industry. Through its work covers 100 countries, the company has developed a property database in prestigious locations around the world. Scale of its operations recorded a huge number of its hotels and rooms. As of December 2009, the company operates, owned, lease, manage and franchise nearly 979 hotels and 292,000 rooms. In addition, the company also owns 22 Vacation Ownership resorts and residential properties. To strengthen its geographic presence further 85,000 rooms in the pipeline for fiscal year 2010, of which 87% will be in emerging markets. Large database of property throughout the world, therefore, enables the company to attract more customers. In addition, it also helps in stabilizing revenue sources, because the company derives income from various countries due to the local economy(Starwood Hotels & Resorts Worldwide, Inc, 2009).

Starwood has initiated a drive for cost containment in fiscal year 2009 to overcome the slump in housing industry. To maintain profitability, the company has three areas: savings in selling, general and administrative expenses (SG & A) more than $ 100 million, or approximately 25% of SG & expenses, selling non-strategic assets, as well as strengthening the balance due debt reduction. Company after analyzing the activity value, a rigorous process to identify the cost structure, implemented some cost-saving measures will save more than $ 100 million. SG & expenses reduced to $ 314 million in fiscal 2009 compared with $ 377 million in the previous year, indicating a decrease of 16,7%. In addition, the company continues to sell its non-strategic assets. Starwood sold Bliss spas Steiner for $ 100 million, the St. Regis in New York trading areas in the GFC Fifth Avenue for $ 117 million and the W San Francisco, Keck Seng ...