Interstate said in a Securities and Exchange Commission (SEC) filing that its cost-saving program, kicked off in January 2009, is expected to cut corporate expenses by $17 million for the year.
The company said the cost cutting also included:
- eliminating 45 corporate positions,
- reducing pay up to 10% for senior management,
- placing a freeze on merit increases for all corporate employees,
- restructuring the corporate bonus plan,
- eliminating restricted stock grants during 2009 for the company’s board of directors, and
- reducing all other corporate expenses, including advertising, travel, training, and employee relations expenses.
Interstate said it had also instituted broad expense cutbacks at its hotel properties.
“In order to partially mitigate the decrease in demand and maximize our ability to maintain rates, we have focused our properties’ efforts on adjusting the business mix by shifting efforts toward group sales, managing off-peak periods, and increasing sales efforts at both the local and national levels in order to capture the highest amount of available,” the company said in the SEC document.