Asia travel spurs hotel expansion

By Jean Chua  |   2008-6-26  |     NEWSPAPER EDITION

STARWOOD Hotels & Resorts Worldwide Inc, the world's third-largest hotel company, said plans to open 90 more properties in Asia haven't been derailed by a slowing United States economy because travel to the region is rising.

Starwood, which owns and manages hotels under brands including Le Meridien, St Regis, W and Westin, has about 500 properties in development, of which about 20 percent are in Asia, Matthew Fry, vice president of acquisitions and development in Asia, told Bloomberg News yesterday.

"There's a lot of doom and gloom on the horizon, but we haven't seen anything fall off a cliff yet," Fry said. "In Vietnam for one, despite inflation rates, interest is still high. We have key partners there who are still keen to expand aggressively."

Starwood's first-quarter profit fell less than analysts estimated on gains in Asia and Europe, where the New-York based company derives 55 percent of its management and franchise-fee income. Revenue per available room, a measure of rates and occupancy known as Revpar, climbed 15 percent in Europe and 16 percent in Asia.

Starwood owns, manages and franchises 900 properties in more than 100 countries.

In Asia, it's planning hotels such as a St Regis in Kuala Lumpur and Le Meridien properties in Xiamen and Taipei.