WASHINGTON, D.C. and WHITE PLAINS, NY— HOTEL BUSINESS® has learned that Starwood Hotels & Resorts plans to eliminate its energy surcharges by November 15, according to a spokesperson for the company. The decision comes in the wake of recent energy surcharge eliminations at many of the other major North American hotel chains, namely Marriott International who announced plans on August 20, to remove the surcharges at all of its owned, managed, and franchised properties by August 31. Hyatt Hotels Corp. removed its surcharges last month, while Hilton said it would remove its charges on September 1. To date, Starwood has the latest proposed date for removal of the added energy fees, which are being dropped by hotel chains in response to declining power costs. According to a spokesperson for Starwood, “Energy charges are still in effect. We are not planning any modifications to the current program and no additional hotels will be added. The plans are to have the charges lifted by November 15th.” However, other hotel chains are dropping their surcharges much earlier claiming that there has been a noticeable decline in power costs, since they began soaring earlier this year. “Energy prices have begun to come down in every market…in varying amounts,” said Roger Conner, spokesperson/Marriott. He noted that all of Marriott’s 350 North American properties, which implemented the surcharge, are being asked to drop the charge and the company “is encouraging 100% compliance.” Marriott becomes the nations third major hotel company to eliminate the surcharge, which was adopted earlier this year in response to soaring energy prices. Marriotts action follows similar moves by Hilton Hotels Corp. and Hyatt Hotels Corp. As previously reported by HOTEL BUSINESS®, class action lawsuits were filed in San Francisco and Los Angeles against Marriott, Hilton, Hyatt, and Starwood Hotels and Resorts in May claiming that guests were unaware of the energy surcharge when they agreed to, and initialed, designated room rates. However, Conner was quick to note that the removal of the energy surcharge was “not at all” affected by the lawsuits. “We are aware of the suits and they are being handled as a legal matter. But we had the surcharges in place, and expanded the surcharges, after the suits were filed. We’re removing them now because costs have come down,” he said. Marriott initially implemented the surcharges in California in March, and in June expanded to 15 to 20 additional markets, including New York City, Baltimore, Washington D.C., Philadelphia, Chicago, Boston, St. Louis, Denver, Seattle, Miami, and Tampa. The surcharges ranged from $1.50 to $5, with New York City having the highest charge. “We didn’t like having to add the charges. We never want our guests to feel like we’re nickel and diming them,” Conner said. –Diana M. Rodriguez
