Starwood Hotels & Resorts Worldwide Inc, operator of the W, Westin, Sheraton, and St. Regis brands, posted a lower third-quarter profit than expected and cut its forecast for the full year, Reuters reports. The hotel operator cited a weakened demand for travel and lodging caused by the U.S. economy and announced that it will cut jobs and costs, as well as reduce its capital spending.
Starwood's third-quarter net income fell from $129 million to $113 million compared to last year, a decrease of 12.4 percent. During the third quarter, revenue per available room increased 3.5 percent internationally, but fell 0.5 percent in North America.The company also announced that its quarterly revenues at its vacation ownership business fell 27.4 percent to $183 million.
"While we can't control the economic environment, we can right-size our
organization to offset the effects of slowing travel demand," said
Chief Executive Frits van Paasschen.