Starwood, Enron ink $1 billion energy management contract

Starwood Hotels and Resorts Worldwide Inc. has contracted with Enron Energy Services, a unit of Enron Corp., Houston, to manage the energy for its hotels in a 10-year deal worth more than $1 billion, the companies reported Wednesday. Under the agreement Enron will supply or procure electricity and natural gas; manage energy use through the implementation of energy-saving projects; and provide energy price stability for the upscale hotel chain.

Sep 7th, 2000


Starwood Hotels and Resorts Worldwide Inc. has contracted with Enron Energy Services, a unit of Enron Corp., Houston, to manage the energy for its hotels in a 10-year deal worth more than $1 billion, the companies reported Wednesday.

Under the agreement Enron will supply or procure electricity and natural gas; manage energy use through the implementation of energy-saving projects; and provide energy price stability for the upscale hotel chain.

"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,'' Robert F. Cotter, Starwood's chief operating officer, said in statement.

Cotter said Starwood expects the Enron contract will reduce energy costs by about $200 million over the life of the contract. The agreement covers Westin, Sheraton, St. Regis, Luxury Collection, Four Points and W hotels in North America.

Starwood is the first hospitality company to outsource energy management, said Enron Energy Services CEO Lou Pai. At a time energy prices are skyrocketing, Pai said Enron will ensure predictable and lower prices by providing Starwood a full range of energy management services, including commodity management, energy asset management, and project management.

In addition to its energy management program with Enron, Starwood also said it will begin a major incentive program to encourage hotel employees to conserve energy. With more than 135 million sq ft of real estate throughout North America and about 2 million occupied guest rooms each month, even small efforts can make a difference, Starwood executives said.

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