Marriott unveils its transformation plan for the Sheraton brand
“From the moment we closed the Starwood merger in late 2016, the revitalisation of Sheraton has been a top priority for our company,” said Arne Sorenson, president and CEO of Marriott International. “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.”
Owners are already responding to the new vision with optimism and energy, committing an estimated half-a-billion dollars in renovations of hotels across the US. Globally, 25% of Sheraton hotels have committed to renovations with some already underway.
The Sheraton experience
Sheraton has built out a 4,200-square-foot vignette at the NYU International Hospitality Industry Investment Conference that brings its vision to life, allowing investors to understand and experience Sheraton’s transformation plans firsthand, particularly the concepts for the hotel’s public spaces.
Reverting to its roots as the gathering place for locals and guests, Sheraton today amplifies that legacy by leaning into services and design that enable socialisation, productivity, and personalisation. Its strategy features collaborative venues, technology-enabled designs, and a host who helps deliver a unique experience that is exclusive to Sheraton.
“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,” said Tina Edmundson, global brand officer, Marriott International. “We have improved brand standards, increased group bookings, and have ramped up our business engine over the last year as the first step in a multi-phase, multi-year plan, leveraging our experience in revitalising lodging brands.”
The company undertook a repositioning of the Marriott Hotels brand beginning in 2013, redesigning the guest room and MClub Lounge working in close cooperation with Marriott Hotel owners. The work has resonated with guests and owners alike. Renovated Marriott Hotels have seen market share gains of, on average, 9% and “intent to recommend” scores from customers that are eight points on average higher than non-renovated hotels."
Sheraton by the numbers
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 two points year-over-year and market share has grown for the first time in years.
System-wide, Sheraton generates $9.2bn 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.
