Marriott focuses on Sheraton makeover in Asia after Covid setback
Sheraton Xi’an Chanba, one of eight Sheraton hotels in Greater China as of end-2022 that exemplifies the brand’s much-needed transformation. Right, Rajeev Menon: “Brand recall in Asia for Sheraton is very positive.”
By Raini Hamdi, 08 July 2023
Of all the brands in Marriott International’s portfolio, the most global is Sheraton, which is present in 75 countries. It’s one of the first international brands to open a hotel in Asia, the Sheraton-Philippines Hotel, Manila in 1967, and the first to enter China by managing the Great Wall Sheraton in 1985. It did what global chains have done only recently, such as launching the hotel-within-hotel concept Sheraton Towers in 1970 and introducing the Luxury Collection in 1992. Starwood acquired the brand in 1998, then Sheraton came under Marriott which bought Starwood in 2016.
As chains consolidate and brands multiply under their larger umbrellas, some flags inevitably go to the wayside. In the company of 30 newfound sisters, it’s hard for Sheraton not suffer an identity crisis, especially when siblings such as Westin have about the same features, others like Ritz-Carlton are more luxurious, and yet others like Edition are younger and trendy. Compounding this, many Sheraton hotels are old, and look it, even in Asia, a region that usually helps chains create the best versions of their brands.
“These hotels used to be iconic in the 70’s and 80’s but over time are in need of tender loving care, capex and repositioning,” Marriott’s president Asia-Pacific excluding Greater China, Rajeev Menon, said.
Marriott acknowledged the makeover necessity by buying the 1,000-room Sheraton Grand Phoenix Hotel in Arizona in 2018 for $255 million, then spending millions more to rewire the property as its showcase of a reimagined Sheraton. Two years later, the chain reportedly sold the hotel to the Blackstone Group for $268 million although it continues to manage the property.
New identity
At least 40 Sheraton hotels globally now reflect the brand’s new identity as “a gathering place for locals and guests.” In Asia, the latest is the first Sheraton in Japan which opened in Kagoshima in May.
Central to the refashioned Sheraton is a “public square,” a lobby that invites people to get together or be alone among others. A custom-designed workspace called the “community table,” which has built-in lighting and charging stations, allows guests to work, eat and drink. They could also retreat to work in Sheraton’s “signature booths” if they wish a quiet space.
To Sheraton, guests today are “productivity-focused.” Hence, another aspect is offering F&B options that are locally-sourced and easy to consume, such as &More by Sheraton at the lobby, which is part bar, part coffee bar and part market.
If all this sounds rather ordinary by now since the social, lifestyle and work from anywhere movement has created many open lobbies and bleisure spaces, it is. The difference however lies in who can execute it best. As there’s still a lack of critical mass with just around 40 out of 435 Sheraton hotels worldwide carrying the new torch, it’s still early days. By the end of this year, another 30 hotels are expected to exemplify the modern Sheraton.
The pace is picking up in Asia-Pacific, including China, according to Menon. APAC is important as nearly a third of Sheraton hotels are found in the region, and pipeline is healthy at 85 properties.
“The brand recall in Asia for Sheraton is very positive. So it is really about getting the product up to where it belongs. We have very clear plans for most of our Sheraton hotels in Asia-Pacific. The pandemic set us back two or three years but over the course of next three years we’ll get the brand fully repositioned,” said Menon.
“Just to give you a few examples, Sheraton Fiji, 35 years old, has just been fully renovated. Likewise, Sheraton in Sydney, another iconic hotel, has just undergone a $50 million renovation. We are in the midst of renovating the Sheraton in the Maldives towards the end of the year. And wherever we have a new [or renewed] Sheraton, the guest satisfaction score and financial performance have been positive,” he said.