Luxury hotel chains give up stars to save money

08/25/2009 | Bloomberg

K.C. Kavanagh, a spokeswoman for Starwood Hotels & Resorts Worldwide, said the hotel chain is allowing some of its properties to lose some of their stars as they reduce service levels to weather a drop in demand. InterContinental Hotels Group and Hilton Hotels have made similar moves. "Maintaining stars requires enormous capital investment," said Stephen Bollenbach, former CEO at Hilton. "Ratings aren't based on making good returns on your investment."

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