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Luxury Hotels Reduce Stars Ratings

In an attempt to save money during the global recession, many hotels have decided to decrease the amount of awarded stars whilst also downgrading their accommodation as fewer people are able to afford luxury holidays

Luxury Hotels Reduce Stars Ratings

Many luxury hotels have decided to decrease their amount of awarded stars and downgrade their accommodation in an attempt to save money during the global recession.

Luxury hotels and resorts have been the worst affected in the accommodation industry throughout the economic crisis as fewer people have been able to take luxury holidays, and measures will need be taken to save some of their properties.

So far, Starwood Hotels and Resorts, InterContinental, and Hilton Corp have reduced their amount of stars and levels of services of some of their 5 star hotels and resorts in destinations all over the world.

Former Chief Executive Officer of Hilton, Stephen Bollenbach, said:

"Maintaining stars requires enormous capital investment. Ratings aren't based on making good returns on your investment."
Many of the services which are being reduced at luxury hotels include welcome gifts for guests,, good quality ice buckets with tongs in rooms, treats on the pillow, 24 hour room service, complimentary newspapers, and fresh flowers in the rooms. Despite the reduction in star-ratings, many guests at luxury hotels will not notice much difference from a 5 star hotel to 4 star hotel but the discount in price will be appreciated with lower rates for high end business guests and travellers on 5 star holidays."

Vice president of Smith travel Research, Jeff Higley, said:

"Consumers want the best deals that they can get. Most luxury hotels are facing occupancy shortfalls; they are lowering rates to entice consumers to come in. There rarely has been a better time to stay at a luxury hotel than right now."

Many luxury hotels are reducing some of their services in a subtle way to avoid the reduction of the hotel's star rating. This may include reducing the amount of food available in the buffets, or decreasing the swimming pool temperature just by a degree or two.

For many of the hotels it is hoped that the reductions in star ratings will only be temporary and once the economy has picked up and services have been reinstated, AAA Inspectors can increase the amount of stars awarded to the hotel.

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