Starwood Rolls Out Sheraton Revamp

NEW YORK CITY—Starwood Hotels & Resorts Worldwide Inc. on Monday introduced a multi-pronged program designed to revive its Sheraton Hotels and Resorts brand over the next five years. Known as Sheraton 2020, the 10-point plan was announced in conjunction with the 37th Annual NYU International Hospitality Industry Investment Conference here. Separately, Parsippany, NJ-based Wyndham Hotel Group announced at the NYU conference that it had struck a deal with Corinthian Development Co. to build more than 15 Wingate by Wyndham properties across the US and Canada.

“Sheraton is Starwood's largest, and most global brand, with a nearly 80-year history as a pioneer and true beacon of hospitality around the world,” says Adam Aron, HOT's interim CEO. With the Sheraton 2020 plan, he adds, “we will act boldly to put Sheraton back on its rightful pedestal as a global hotel brand of choice, everywhere.” The brand accounts for more than 40% of HOT's global footprint.

Aron's comment echoes a discussion of Sheraton's standing during the hotelier's first-quarter earnings call in April. “Sheraton needs to be significantly reinvigorated with a boost that can only come from top-notch marketing,” Aron said on that call. “We have some terrific Sheraton properties around the world, and we have some hotels that need more focus on the fundamentals of delivering service quality to our guests.”

In line with reinvigorating the brand, Stamford, CT-based HOT plans among other things to roll out a $100-million, Sheraton-focused marketing campaign; launch a new premier tier, Sheraton Grand, with plans to upgrade 100-plus existing properties to the new tier; bolster customer service with a “maniacal—and consistent—focus on excellence in service delivery; and to open 150 new Sheraton hotels worldwide by 2020. The latter will be accomplished trough conversions, adaptive re-use and new-build projects, according to HOT.

At Monday's NYU conference, Geoff Ballotti, Wyndham Hotel Group's president and CEO, said the new partnership with Corinthian was driven by returns in the limited-service segment. Corinthian and a capital partner plan to deploy up to $250 million of total capital to develop the multiple properties under the midscale Wingate brand. The franchised hotels will be managed by Dallas-based Aimbridge Hospitality, which currently operates more than 30 Wyndham properties under various brands.

“Demand for hotel rooms is at historic highs, and there has been limited new supply since the economic crisis of 2008, making now an ideal time to expand the Wingate by Wyndham franchise,” says James Wolford, CEO of Morgan Hill, CA-based Corinthian. The company plans to develop Wingate hotels in markets including Boston, Chicago, Los Angeles, New York City, Toronto and Vancouver, with the first projects slated for Denver, Seattle and Nashville.