Starwood CEO cites 'optimistic' customer base

Frits van Paasschen, president and CEO Starwood Hotels & Resorts Worldwide, speaks during the Reuters 2011 Global Fashion and Luxury Summit in New York, May 25, 2011.

(Reuters) - Continued strength in business travel bodes well for the hotel industry despite economic uncertainty, the chief executive of Starwood Hotels and Resorts Worldwide said.

Frits van Paasschen said concerns about the euro zone crisis or slowing growth in China were not holding back business, as American and European companies were still traveling abroad to scout out growth opportunities.

"Even though the headlines continue to be gloomy... the fact of the matter is that the customer base that we continue to address are more optimistic," van Paasschen said in an interview.

A business-led recovery over the past year has helped lift U.S. hotel occupancy rates even as hotel construction remains softer because of financing challenges.

Van Paasschen said demand was rising in North America without a lot of new supply at the same time that emerging markets were expanding their infrastructure and building wealth. "We as an industry and we as a global branded business have cause probably to be more optimistic than maybe the world as a whole," he said.

Starwood (HOT.N) caters to the higher end of the market with brands that include Sheraton, W and Westin. It will report fourth quarter results on Thursday.

Starwood on Wednesday announced enhancements to its loyalty program that include sweetened benefits for most-frequent travelers such as 24-hour check-in.

"For as loyal as our most loyal guests are, we do know there are times when they haven't stayed with us," van Paasschen said. "The real benefit from this program is to make the relationship we have with them so strong that they stay with us wherever they go."

(Reporting By Karen Jacobs; Editing by Tim Dobbyn)