Marriott reveals plans to spend at least $500 million revamping Sheraton brand
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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

graph 0607 marriott

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.

Disclosure

Dominion holds Marriott International in its Global Trends Luxury Fund.


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