Marriott International has unveiled a plan to revamp the Sheraton Hotels and Resorts brand, which has been struggling for years. 25% of the owners have committed to spending about $500 million on Sheraton renovations, the third largest brand in Marriott’s portfolio.
Marriott acquired Sheraton when it purchased Starwood Hotels and Resorts in 2016. The brand makes up 42 percent of the portfolio of hotels that Marriott acquired from Starwood. Sheraton has 444 hotels in 72 countries and is the largest brand outside of the USA by room count.
“From the moment we closed the Starwood merger in late 2016, the revitalization of Sheraton has been a top priority for our company,” said Arne Sorenson, President and CEO of Marriott International.
Marriott showcased its plans for changes to Sheraton’s common areas at a pop-up at the NYU International Hospitality Industry Investment Conference in New York.
Lobbies will now have a town square feel to them, with more comfortable seating and communal tables. The tables will have lockable drawers for guests to store their devices when they have to take bathroom or other breaks.
Privacy booths will be available for guests to make phone calls. Guests will also be able to rent “collaboration suites,” small partially-enclosed meeting areas. And they will be able to reserve them through Marriott’s mobile app.
A “coffee bar bar” will serve coffee by day and alcoholic beverages and more by night.
Guestrooms will also be revamped with desks that can be lowered or raised for sitting or standing.
Sheraton hotel owners who do not want to make the required changes ill likely rebrand to another Marriott brand or completely leave the company.
Sheraton by the Numbers
Since joining Marriott International as part of the acquisition of Starwood Hotels and Resorts in September 2016, Sheraton has exited 6,000 rooms with another 2,000 expected to depart by the end of the year. During the same period, 5,000 rooms have been signed to the portfolio. Intent to recommend for the brand has already increased 2 points year-over-year and market share has grown for the first time in years.
Systemwide, Sheraton generates $9.2 billion in property revenue globally. Sheraton’s 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.
Read more in Marriott’s press release.