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The new look of one of Marriott’s full-service hotel brands has finally come to life, almost three years after it was first announced.
Marriott on Thursday unveiled six Sheratons – two in the United States, two in China, one in Dubai and one in Israel – with the flagship brand’s new look, in the works since 2018. The new branding emphasizes productivity in bedrooms and living rooms. A town square in the lobby offers various places to work, dine or have a drink – which ideally generate additional income for the owners.
A hotel remodel doesn’t come cheap: Sheraton owners in North America alone could collectively spend nearly $ 1 billion on the new look if they all decide to go ahead with renovations. This does not take into account investments seen abroad.
Sheraton’s makeover comes at a time when brand distinction is essential both in the hospitality industry and in a company like Marriott, which has several full-service brands directly competing. To get the results they want, Marriott executives say they can’t use their typical playbook.
“We tend to stack and test a lot of stuff in North America because that’s where most of our portfolio is. But with a brand like Sheraton, which is such a global brand and has a pretty big international presence, we knew we weren’t going to do it that way, ”said Amanda Nichols, Senior Director and Global Head of Sheraton Hotels division of Marriott. . “It was important to work with our continental teams to design and guide strategies as well as with our owners globally.”
Sheraton, with locations in 72 countries, is Marriott’s most global brand, added Nichols. It is also Marriott’s second-largest full-service brand (after the company name) and the third-largest fee generator, behind Courtyard by Marriott and Marriott Hotels.
But it’s also been the source of plenty of industry criticism, even before Marriott bought it during its 2016 takeover of Starwood Hotels & Resorts.
Analysts say it lost its luxury appeal in the United States decades ago when the company, then owned by ITT, added roadside motels to its portfolio. This led to a disjointed brand where in Asia it was luxurious and in the US it was hit and miss. Starwood eventually beat Hilton by acquiring ITT Sheraton in the late 1990s for nearly $ 10 billion.
“I think the one thing Starwood hasn’t done enough is that it hasn’t had the courage to say to hotels that don’t meet the standard, ‘You’re away,’ said the Marriott CEO Arne Sorenson at Skift in 2018.
It may seem like a bad time to move forward with a brand overhaul, given that the pandemic has decimated hotel occupancy rates and revenues and, as a result, cash available for expensive renovations. While this has slowed the completion of some projects, Marriott executives point out that the new look also comes with savings and cost benefits.
A renovated room at the Sheraton Tel Aviv (Courtesy Marriott).
A brand new standard for the lobby, called the Coffee Bar Bar, could increase food and drink income throughout a day. Owners also have the option of including the Veiled Bar, a high end bar experience that is not necessary at all. New construction of rooms offers savings of over 20% compared to previous designs.
“We wanted to make sure it was a brand that could resonate with global appeal and local relevance,” Nichols said.
The Sheraton in downtown Denver was the first to get the brand’s refresh and was eventually joined by properties in Phoenix, Tel Aviv, Dubai, and the Chinese cities of Guangzhou and Mianyang. The goal is to complete more than 40 renovations by the end of 2022.
But with over 400 hotels in the Sheraton system, it may seem like a very slow rollout for a plan first announced almost three years ago.
“If you look at Sheraton’s transformation, it’s pretty much comparable to previous brand refreshes within our portfolio,” Nichols said.
Updates are proceeding at roughly the same pace as renovations seen in the Marriott Hotels brand refresh, which was announced in 2012. Sheraton hotel updates will take place based on existing renovation cycles in order to give owners time to plan for upgrades and enable design teams across the world to better manage ongoing projects.
There is no set deadline for the entire portfolio to meet new brand standards, but some well-capitalized owners are using the lull in business during the pandemic to speed up renovation timelines.
“We find a lot of our convention hotels, while we have the schedule and the owners have capital, some are moving forward with renovations because they want to take that time where they are not crowded … and be really ready when the going. convention and group activities will return, ”Nichols said.
Industry analysts predicted Marriott had a big job to do when it first announced the Sheraton brand redesign. Some thought Sheraton was a concept that had lost its way and was not clearly focused on the type of customer it wanted to pursue.
Marriott executives have also indicated that they expect to remove the flag from some properties following the new look. Some of those owners have since moved to Four Points or Delta Hotels, Nichols said.
But that doesn’t mean Sheraton is focused or only looking for a more exclusive group of travelers. Marriott executives say it will continue to be a leading brand with a presence in a variety of markets for the leisure, business, and meeting and events industries.
“Sheraton is a powerful brand within our portfolio, and it meets such a diverse need and always has been,” said Nichols. “While it might be exciting and elegant to say, ‘We just want to be in these places’, that’s not Sheraton’s role, and it’s not the future that we see.”
[UPDATE: Since publication, Marriott provided details on cost savings associated with the design. This story has been updated.]
Photo credit: Marriott launched six revamped Sheratons (Photo: Sheraton Grand Dubai) this week, nearly three years after launching the brand’s revitalization. Marriott International
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