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Analysis

What does the future hold for Sheraton?

While the upscale brand is seeing its hotel supply erode, Marriott has just unveiled new actions to boost its attractiveness.

A declining supply

Former flagship brand of Starwood Hotel and Resorts, it joins Marriott's portfolio following the group's acquisition. As of January 1, 2018, it is the brand with the largest hotel supply in the group's upscale / luxury segments, with more than 155,000 rooms in operation, followed by JW Marriott (more than 35,000 rooms) and Le Méridien (nearly 30,000 rooms).

Recording positive growth in its global supply since 2013, it lost 1.9% between 2017 and 2018. While this decline may seem anecdotal, it is not on the European market. The chain's supply has been declining since 2013 - except in 2016 - to an average of -2.1% annually.

 

 

Among the symbolic closures, that of the Sheraton Brussels (503 rooms) in the centre of the capital had caused concern about its dynamism. The property finally became independent and opened after renovation work: "The dynamism is regaining at the place Rogier. With the arrival of new brands, this hotel will bring a beautiful stone to the building. The worst thing was to have a canker for years, as sometimes happens in Brussels," said the mayor of Saint-Josse-ten-Noode.

Discover the Top Hotel Chains in Europe in 2019

 

Upgrading of the supply

Faced with this decline in attractiveness for the brand, Arne Sorenson - CEO of Marriott- announced several measures to relaunch it.


Starting with removing substandard assets : “Over the next few years, you’ll see that the worst Sheratons are either dramatically reinvented or they’re gone. That will move the average experience up materially” he said.

Then by increasing the quality of accommodation in properties: “Sheraton is a big brand that suffered from standards that weren’t aggressively developed or implemented”

Projet du potentiel futur Sheraton Nice
Sheraton Nice (France) Future Potential Project

And by asking hotel owners to invest: "We made it very clear to the owners that if they don’t meet those standards then they’re not going to stay in the system.”

Following these declarations in 2018, 25% of properties in the United States will receive $500 million to be renovated.

Brand revitalization

Marriott International has just unveiled the new logo of the upscale brand.

Nouveau logo Sheraton
New Sheraton logo

This new logo offers a modernized look and feel to match the reimagined space while maintaining the powerful equity and recognition of the original logo.” said Mara Hannula, Vice President, Global Brand Marketing, Classic Premium Brands.

A new identity and more demanding standards that could boost the brand's attractiveness. In France, the American could again expand in the coming years and does not hide its ambitions to open a 230-room hotel near Nice airport.

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