Announcing SPG’s 2015 Category Changes

Discussion in 'Starwood | Preferred Guest' started by SPG Champion 2, Feb 23, 2015.  |  Print Topic

  1. SPG Champion 2

    SPG Champion 2 Official Representative

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    Our annual category changes will go into effect on March 10, 2015.

    Just over 22% of hotels are changing category; of these, 10.49% are moving up and 11.78% are moving down including some favorites such as The St. Regis Rome, The Westin Kaanapali Ocean Resort Villas, Maui, W Paris – Opera, and others. We’re not adding new categories or changing category pricing at this time. Here’s a look at the preliminary list of changes to help you maximize your Starpoints. Please review the changes to decide if you’d like to redeem your Starpoints prior to - or after - the changes take place on March 10, 2015.

    Please note that Category adjustments are always subject to change. While we make every attempt to provide you the latest, most accurate information, adjustments may be made before or after the category change date, March 10, 2015.

    Click here to view the list of changes.

    Click here to view existing hotel categories.

    When you’re ready to book, visit spg.com or contact one of our Customer Contact Centers.

    Best regards,

    Alexandra (Sandi) Baker
    Specialist, Social Media
    Starwood Hotels and Resorts

    spgchampion@starwoodhotels.com
     
  2. ContinentalFan

    ContinentalFan Gold Member

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    Thanks for his new information.
     
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  3. pointshogger

    pointshogger Silver Member

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    Very interesting. Lots of Canadian hotels going down in Category. Not that I'm complaining, is there a reason for this?
     
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  4. uggboy
    Original Member

    uggboy Gold Member

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    Falling demand and falling overnight rates, I guess.
     
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  5. MSPeconomist
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    MSPeconomist Gold Member

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    SPG categories supposedly reflect anticipated room rates (converted to USA dollars???).
     
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  6. uggboy
    Original Member

    uggboy Gold Member

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    I would think so, it's all about room rates and demand.
     
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  7. pointshogger

    pointshogger Silver Member

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    Maybe it was just too high to begin with. Glad to see that they consistently make adjustments to meet demands (or lack of).
     
  8. mattsteg
    Original Member

    mattsteg Gold Member

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    Us dollars are worth 10%+ more canadian dollars vs a year ago. Steady demand and rates paid in canadian currency would also tend to make any rates pegged to USD cheaper.
     
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  9. East_Yorker
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    East_Yorker Gold Member

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    This is great help in planning some upcoming trips. Thanks!
     
  10. newbluesea
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    newbluesea Gold Member

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    Ok so how would the "currency theory" experts explain that there are an equal number of properties in China going up or down. :)

    I recall William saying... intimating (since he obviously cant say precisely ) elsewhere that the changes are determined by more complicated factors than those outlined here so far..
     
    Last edited: Feb 24, 2015
  11. mattsteg
    Original Member

    mattsteg Gold Member

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    Currency fluctuations (and forecast currency fluctuations) are only one item that is likely considered. The US-China exchange rate seems to have stayed in the similar range for the past year, although I would not make the claim that this is the main explanation.

    Reasonable assumptions:
    • Starpoints are in some way tied to USD, as starwood is a US company. They could well be hedged or otherwise managed in some more elaborate way, but at some point they come back to dollars.
    • SPG sells points to the hotels and Amex, who pass them on to the us as incentives.
    • Rooms are redeemed with a transaction involving the hotel, the guest, and SPG. Typically I have seen this represented as "hotel gets nominal compensation from SPG if not nearly full, if full receives an amount related to their average room rate"
    • From available data, starpoint "average" values (cents per point compared to public rate) from categories 3-7 are pretty constant, so the defining criteria are likely closely linked to average room rate in dollars.
    • I would imagine the average cost to redeem to SPG for properties is tracked and taken into consideration, so a property that was consistently redeemed at when full might be moved up.
    While there are likely various special cases, exclclusions, etc. at the end of the day based on available evidence there is strong evidence that the average rate in USD is strongly linked to the category, and "following the money" suggests that this would be a sensible approach as well.
     

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