Marriott International has announced its transformation vision for Sheraton Hotels and Resorts, receiving around $500 million worth of owner investments in the US.
Big things seem to be ahead for Marriott’s Sheraton brand as it shared its vision to the world, highlighting the company’s focus on guest experience, hotel operations, and design philosophy. The announcement came at the NYU International Hospitality Industry Investment Conference, held at the New York Marriott Marquis this week.
“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.
“We knew that the way to restore this incredible brand was focus and collaboration with our hotel owners. 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,” he added.
The new vision has already stirred a positive response, with owners and investors from the US already committing an estimated $500 million. Around the world, 25% of Sheraton hotels are already undergoing renovations.
“We are ready, our vision is clear and the energy is robust”
“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,” continued Sorenson.
Since the Sheraton brand joined Marriott as part of the Starwood acquisition in September 2016, around 5,000 rooms have been signed to its portfolio and market share has grown for the first time in years. Today, Sheraton generates $9.2 billion in property revenue globally. Its 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.
“The brand has been above competitive benchmark in both rate and occupancy”
“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.”