Starwood to Start Think Tank

Starwood Hotels & Resorts Worldwide announced today it would move its luxury brands to Soho and create a “design, branding and retail think tank.” That means teams from W Hotels, Le Méridien, St. Regis and The Luxury Collection will join forces with Starwood’s Bliss and Remède Spa to come up with ways to wrench money from consumers during a recession.

It’s not a bad idea, especially since the luxury segment is doing probably the poorest of all hotel tiers, and some hotels are downgrading their luxury status to mid-range hotels. However, I’m not sure a think tank will come up with any success stories that don’t involve a free additional night or deep discounts. Budget hotels are doing better because of company downgrades, but even they don’t have an easy time of it. To illustrate the change in thinking, here’s a Crain’s piece on how small businesses are saving money on travel:

12:30 p.m. The travelers check into their four-star hotel in Salt Lake City—rather than more costly Park City nearby—procured for just $50 on Priceline.com. Thanks to the array of complimentary food and drink at Sundance, they pay for only one meal during their stay.

(A discounted $50 room and paying for only one meal? That is a nightmare for anyone in the hospitality or tourism industry.)

Starwood’s new office space and think tank will be located at 75 Varick Street in New York and is slated to open in September.