Starwood Signs 10-Year Energy Deal with Enron

Starwood officials said the agreement calls for Enron to provide energy management services at its North American hotel properties, which include Westin, Sheraton, St. Regis, Luxury Collection, Four Points and W facilities in North America. Estimated to save $200 million over the next 10 years, the program covers 135 million sf and approximately two million occupied guest rooms each month.

“Energy is a significant expense, and we have chosen Enron to help us properly invest in equipment and programs that will ultimately reduce our energy costs,” says Robert F. Cotter, the company’s chief operating officer. “Starwood recently spent $1.8 billion to improve the front of our house with extensive renovations, new guestroom designs and stunning public areas. Today, as part of our agreement with Enron, we’re investing $50 million to reduce energy consumption in our hotels, resulting in a huge cost savings and more environmentally friendly operations.”

The agreement calls for Enron to supply or procure electricity and natural gas, manage energy infrastructure through the implementation of energy-related projects and provide energy price stability at the hotels. Enron, a producer of electricity and natural gas, posted revenues of $40 billion in 1999 and $30 billion during the first six months of this year.