NEW YORK— Starwood Hotel & Resorts Worldwide, Inc. is taking its branding efforts to a new level as the company embarks on a repositioning program for its stable of brands designed to further heighten customer loyalty and drive profits for its owners as well as its shareholders. The new strategy, announced at Starwood’s media event at the Sheraton New York last month, comes on the heels of the disposition of more than $5 billion in non-strategic assets over the last 18 months enabling the firm to fully shift its focus from owners of real estate to a more efficient hotel distribution company. That branding focus comes directly from the company’s CEO Steve Heyer— the former Coca-Cola executive who is no stranger to the impact of branding— who maintains that the lodging industry as a whole has fallen short in this respect. “There are very few truly differentiated brands; a brand is an experience. Brand loyalty is not near the level it should be…[This is what the industry has done] Starwood intends to undo it,” he said, adding, “it’s not the box, it’s what we put in it.” Starwood detailed a host of plans ranging from new ad campaigns to new room designs for all of its brands, which include Sheraton; Four Points By Sheraton; Le Meridien; Luxury Collection; St. Regis; W; Aloft; and Westin, as well as project ESW, the company’s planned entry into the extended-stay segment. Heyer reported the company sees the select-service, extended stay segments as “high margin, high profit businesses.” He noted when he joined Starwood 18 months ago as CEO that all of its brands, with the exception of W, lacked sharpness and that helped establish the company’s current direction. “We’ve dramatically reshaped our company. I love the new Starwood, I believe we are today the most balanced hotel company in the industry,” he said. Despite the fact that the balance may have shifted in the direction of franchising, Heyer said, “we think and act like an owner.” He explained Starwood’s decision to sell real estate holdings— although the company will retain many of its more attractive assets— was not a function of current market values but rather in line with its long-term strategy. “We’re not market timers. We believe real estate pricing was good and the time was right to sell…We will be buyers in booms and busts,” he said, adding, “we’ve created enormous financial flexibility.” Starwood’s brands are in high demand, according to Heyer, with 200 full-service hotels in the global pipeline. In addition, the company expects to sign 150 new contracts in 2006, which is now is essential to Starwood’s growth. “We have robust pipeline development as we are more dependant on growing our fee business,” he said, adding, “we’ve created prototypes to make it easier for hotels to be built.” As with any initiatives for a public company, the new plan is designed to not only produce for franchisees, but also for shareholders. Heyer discussed the investment on the company’s part. “It was a 90-day intensive period, it galvanized the company. There was no unit untouched by this work. It was probably a third of the payroll day in and day out, and probably [cost]a few-hundred million dollars,” he said. Starwood’s largest brand with 389 hotels in 64 countries, Sheraton is going through its own reassessment under new senior vp of marketing Chad Waetzig. “As Sheraton celebrates its 70th anniversary this year, the development pipeline is in particularly strong shape with 43 new properties scheduled to open by the end of 2007 and another nine in earlier stages of development,” Waetzig said. The brand focuses on what he called the purpose-driven traveler, including the business traveler “who seeks connection.” The prototypical Sheraton guest is looking for a warm, comforting environment. “This is a guest who very much wants to belong,” Waetzig elaborated. “Consequently, this guest doesn’t consider being out of town to necessarily mean being out of touch with family and fri
