Marriott announced its $500 million transformation vision for Sheraton Hotels yesterday. Third time’s a charm?
There have been two previous Sheraton brand transformation projects launched in the past decade.
Since December 2006, Sheraton, part of Starwood Hotels & Resorts Worldwide, has invested $2.3 billion in opening new hotels, $1.5 billion in property renovations and an $400 million on brand initiatives. The brand also invested $2 billion in improving international hotels.
Sheraton 2020, a 10-point plan to revive the brand, will begin immediately and include a new $100 million marketing campaign, the company announced this morning at the New York University International Hospitality Industry Investment Conference.
Perhaps this new Marriott 2018 transformation is a reboot of Sheraton 2020.
Company estimates $500 million dollars of owner investment already committed in the U.S.
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.
Sheraton Hotels and Resorts transformation vision as shown in Marriott News release –June 4, 2018.