Sheraton has designs on fresh look
— -- Sheraton, one of the largest hotel chains with more than 400 properties worldwide, is getting an extensive makeover after years of losing customers to competitors.
The $1.7 billion project is aimed at renovating nearly half the hotels in North America by next year with fresher decor, brighter colors and lobbies that beckon guests with new restaurants and cafes.
Starwood Hotels, which owns the Sheraton brand, began the project in early 2007 and hopes to complete renovating 86 hotels — out of 204 in North America — in 2009. It's also removing 38 underperforming properties from the chain.
The project is about "halfway done," says Hoyt Harper II, a Starwood executive in charge of the brand-reinvigoration project.
"In North America, we lacked consistency and quality. When we decided to elevate (Sheraton), we wanted a brand that can compete with Hilton or Marriott," he says.
"There was a time when Sheraton was one of the leading brands," says Bjorn Hanson, a hospitality industry professor at New York University. "But it lagged in introducing new design and service concepts, and developed a level of inconsistency."
In 1998, Starwood bought the chain from conglomerate ITT to target business travelers who seek upscale, full-service comfort. Starwood has always wanted to reinvigorate Sheraton, but it had other investment priorities — especially the launching of W, the chic chain that opened in 1998 and ushered in a new era of hotels that also aspire to be see-and-be-seen hot spots.
Size matters
Sheraton's sheer size also posed challenges, as it took time to negotiate with owners and franchisees. Starwood owns the brand, but other investors mostly own the real estate. "It took time to come up with a comprehensive plan to apply to so many properties," Harper says.
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