BETHESDA, MD Host Marriott Corp. is expecting its 2001 hotel RevPAR to increase at a slower rate than last year due to the nation s slowing economy, and is prepared to make provisions to compensate for the decrease in demand, said Greg Larson, vp/investor relations.
As previously reported in HOTEL BUSINESS., the company plans to cut employee overtime hours, run restaurants for fewer hours, and buy energy in bulk to off-set RevPAR growth of 2-3% in 2001, as opposed to its 6.6% growth last year.
However, Larson noted that company is always looking for cost savings ideas, even during periods of high growth. Our asset management team is constantly looking for ways to decrease expenses and increase revenue, he said.
He noted that one way to decrease costs would be to determine a hotel restaurant s slowest period of the day, and then close the facility during that time.
Larson added that once supply growth begins to decrease, which he expects to occur in 2002 and 2003, the company s (and industry s) RevPAR growth should start to increase again at a higher rate.
In addition, Larson said that the company plans to sell $100 to $200 million in non-core, suburban assets this year. He said the company would use the proceeds to develop more large, urban properties. Currently, 80% of the company s hotels are in urban locations, according to Larson, and the company hopes to increase that figure this year. (3/13/01) Diana M. Rodriguez