BETHESDA, MD – Ever since the Starwood merger in 2016, the revitalization of the Sheraton brand has been a “top priority” for Marriott International. Now, the brand is one step closer to a full transformation following a special presentation to owners and investors earlier this week.
While at the NYU International Hospitality Industry Investment Conference in New York, Marriott presented the its brand strategy as well as its signature focus on guest experience, hotel operations and design philosophy. A 4,200 square-foot vignette at the Conference has brought Marriott’s vision to life, allowing investors to experience the transformation plans firsthand.
The results have already created big buzz in the industry, with owners committing an estimated half a billion dollars in renovations of hotels across the U.S. As of now, 25% of Sheraton hotels globally have committed to renovations, with some already underway.
“We knew that the way to restore this incredible brand was focus and collaboration with our hotel owners,” said Arne Sorenson, President and CEO of Marriott International. “We wanted to build on Sheraton’s rich legacy of sitting at the heart of communities across the globe, but also to create a differentiated positioning and compelling proposition for our owners. With our Sheraton transformation plan, we’ve put together all of the pieces of the equation to work cooperatively with our owners to set this iconic brand on a new, disciplined and successful path. We are ready, our vision is clear and the energy is robust for Sheraton.”
Tina Edmundson, Global Brand Officer, Marriott International added: “Marriott International is well positioned to deliver a comprehensive strategy for Sheraton’s brand transformation and we already have great momentum. This is the first time in years that the brand has been above competitive benchmark in both rate and occupancy. We have improved brand standards, increased group bookings, and have ramped up our business engine over the last year as a first step in a multi-phase, multi-year plan, leveraging our experience in revitalizing lodging brands.”
Since joining Marriott International as part of the acquisition of Starwood Hotels and Resorts in September 2016, Sheraton has exited 6,000 rooms with another 2,000 expected to depart by the end of the year. During the same period, 5,000 rooms have been signed to the portfolio. Intent to recommend for the brand has already increased 2 points year-over-year and market share has grown for the first time in years.
System-wide, Sheraton generates US$9.2 billion in property revenue globally. Sheraton’s portfolio currently consists of nearly 450 open hotels with 80 additional projects in the pipeline in 72 countries and territories. By 2020, the brand’s footprint is expected to expand to 90 countries.