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Slump in hotel occupancies due to health concerns.

Global brands, Starwood Hotels & Resorts and Marriott International uncovered the impact of swine flu on sales in their quarter-two reports.

Starwood estimated the H1N1 virus or ‘swine flu’ reduced revenue in the second quarter of 2009 by up to US $10 million.

While swine flu concerns, combined with the “difficult economic climate”, were blamed for international comparable company-operated RevPAR decline of -31.5% (22.1% using constant dollars), for Marriott’s markets outside North America. In addition, average daily rates fell by -22.3% (11.6% using constant dollars).

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However, the Middle East appeared to be little affected by the virus. Starwood’s Africa and Middle East market (including same-store owned, leased, managed and franchised hotels), was the best performing out of its world segments in terms of RevPAR, which decreased -19.9% to $119.21 million and occupancy, which dropped -5.3% to 67.6%. Worldwide, Starwood RevPAR declined -27.7% to $96.92 million and occupancy dropped -8.1% to 62.5%.

RevPAR for Marriott International’s worldwide comparable system-wide properties declined -23.6% (-21.4% using constant dollars). The Middle East and Africa showed a smaller decline of -22.2% in RevPAR to $100.59million and occupancy in this area fell -12.7% to 72.8%