Marriott reveals plans to spend at least $500 million revamping Sheraton brand
The world’s largest luxury retailer, Marriott International, has unveiled plans to revamp its Sheraton Hotels and Resorts brand. The brand makes up 42% of the portfolio that Marriott picked up when it purchased Starwood Hotels and Resorts in 2016, and is Marriott’s largest brand by room count. But it’s struggled to win consumers’ praise over the last few years. Now, Marriott wants that to change – and is looking to inject some life (and money) into the 81 year old brand.
Marriott’s share price has risen by 5% over the last five days
SOURCE: Yahoo Finance
According to Marriott’s CEO, Arne Sorenson “the revitalization of Sheraton has been a top priority for our company,” since the Starwood merger went through. Tina Edmundson, Marriott’s global brand officer, agrees, saying “guest satisfaction, especially in the U.S., was not where it should be.” Julius Robinson, the company’s senior vice president and global brand leader, thinks Starwood was not aggressive enough in de-flagging properties that weren’t living up to the brand promise. “We know the hotels that have to leave the system,” he adds.
But for those that stay, Marriott has some big things in mind. At a recent pop-up in the NYU International Hospitality Industry Investment Conference in New York, the world-leading hotelier showcased some of them.
Lobbies will have a “town square” feel to them, with more comfortable seating, communal tables, and lockable drawers “for guests to store their devices when they have to take bathroom or other breaks.” There will be privacy booths for phone calls. “Collaboration Suites” for meetings. And a “coffee bar bar” that serves coffee by day and alcohol by night. Guestrooms will get adjustable desks.
According to Marriott, 25% of owners of Sheraton Hotels have already committed to the revamp, putting up as much as $500 million.
Dominion holds Marriott International in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.