STAMFORD, CT—With a new brand launched and its global brand leadership reorganized, the focus for Starwood Hotels & Resorts Worldwide, Inc. has now come to rest on one of its core brands: Sheraton Hotels and Resorts.
Like any 80-year-old with a contemporary psychographic, the full-service brand is ready for rejuvenation, and the powers that be at the global chain are ready to deliver.
The company has come up with a five-year, 10-point plan dubbed Sheraton 2020 that will include a two-year, $100-million, brand-centric marketing campaign; creation of a Sheraton Grand tier for more than 100 of the brand’s top hotels; initiatives around profit enhancement and revenues for owners/developers; and a push to grow the brand in excess of 150 hotels.
As early as this month, Sheraton will undergo a new positioning that will see a changed visual identity, albeit one that incorporates its existing logo, all geared toward better defining the brand. A color scheme of navy blue, white and silver will define Sheraton; gold will supplant silver to define the Grand tier. In July, the company will implement a Sheraton-focused Starwood Preferred Guest promotion, touted as “the single richest” in SPG history.
The broad-brush endeavor is designed to uplift the brand across the board, whether a particular property is a top performer or one that needs re-examining to be better on par with its comp set.
“Sheraton’s position today is really dependent on what market you’re talking about. Sheraton is the…king of the hotel industry in China, with more than 60 hotels, and that portfolio is probably going to double,” said Adam Aron, Starwood’s CEO, noting the two-year-old Sheraton Huzhou Hot Springs in Zhejiang is an example of a vision-forward hotel. “If you go to other markets, Sheraton is not as strong a brand as we might want it to be. So, when we took a look at Sheraton, we wanted a diagnosis of where Sheraton is in the world today.”
Assessing the brand would appear key for the publicly traded company, as Sheraton, with 430 hotels, represents approximately 43% of its global footprint within the 10-brand portfolio. It’s also the company’s fastest-growing brand in absolute terms, said Aron, noting of 20 hotels opened overall in Q1, Sheraton represented five of those.
“But,” he said, “If we want to look forward five years, then the question is: How can we make sure that Sheraton is or stays on the pedestal it deserves and stays the global brand of choice? We decided there were 10 things we needed to do to make sure that the CEO of Starwood Hotels in 2020 is thrilled with the Sheraton brand.”
Additional initiatives within the plan include better engaging general managers and associates to understand and promote the brand’s ethos, particularly in guest-facing situations and service delivery; recapturing group and meetings business to become the top-of-mind brand for planners; becoming more design forward within guestrooms and public spaces, especially in lobby/lounge areas, to meet guest expectations; and create opportunities that drive revenue.
For example, Dave Marr, global brand leader for Sheraton and Tribute Portfolio, cited a new F&B revenue-generator dubbed Pair that will couple local craft beers or signature wines with small plates of tapas-style foods. “We’re going to roll this out in all of our lobbies and give a reason for our food and beverage teams to bring their culinary expertise to life in our public areas,” he said.
Industry veterans will recall a similar push by Starwood in 2007, when it set plans to revamp the legacy brand on a global basis. That execution brought in the now-signature The Link@Sheraton; upgraded its fitness offerings; and launched partnerships with entertainment companies, among other initiatives and changes.
Distinct to the current plan is the Sheraton Grand tier, which will not only bring an aspirational platform to existing Sheraton hoteliers, but will offer an enhanced experience for guests.
“That one act allows us to showcase our best properties, which we, in turn, think will create a halo effect for the whole brand,” said Aron, noting the Sheraton Huzhou Hot Springs is a prime example of a Sheraton Grand candidate. “We expect somewhere between a fifth and a third of the Sheraton hotels will be rebranded with the designation.”
Not every Sheraton considered for the tier will have to meet an absolute set of qualifiers, e.g., stunning architecture, extraordinary F&B, lavish design, etc., according to Aron. It could be one or more of such aspects, he noted. “You could even envision a hotel that gets its way into a Sheraton Grand designation, not because the physical plant is so stunning but because the hotel does such an extraordinary job in service—not for a month, but for a sustained period over time—and has a great reputation for service excellence and highly satisfied guests. There are a lot of ways you can get to become a Grand but, clearly, it’s our expectation that these are going to be the best hotels in our system,” he said.
The CEO said the tier also would embrace conversions and new-builds.