Sheraton Rebrand Aims to Bring the Hotel Chain 'Up to Date'

Once considered a bit of a black sheep in the Marriott portfolio, Sheraton Hotels and Resorts will be getting a new look coming out of the pandemic. This morning, the brand unveiled a redesign effort Marriott hopes will bring Sheraton “up to date” for “the next generation of travelers,” aiming to transform more than 40 hotels by the end of 2022, with more than six already complete in Denver, Phoenix, Israel and other locations globally. While it isn’t a great time to be in the hospitality business, the environment might be ideal for a rebrand. This one's been in the works since Marriott purchased the Sheraton brand from Starwood in 2016. Sheraton is Marriott’s third largest and most global brand. As of 2018, it was still able to pull in $9.2 billion in revenue across more than 450 hotels in 70 countries. 'The Buick of the hotel business' Still, the brand had become something of a redheaded stepchild for the company, even before the pandemic crippled the travel industry. Starwood had reportedly debated dropping Sheraton—then-CEO Adam Aron had called the brand “tired”—before Marriott snatched up Starwood’s entire portfolio in 2016. “It has become the Buick of the hotel business: still well known but not well regarded,” said Chekitan Dev, a hospitality branding professor at Cornell University. “Despite its lackluster market position, it is still one of the most recognized hotel brand names and has a lot of rooms affiliated with the brand.” As of the end of 2019, the company said roughly half of Sheraton hotels have either “undergone, are undergoing, or have committed to undergo renovation.” 'A ton of work' Marriott CEO Arne Sorenson called the brand “a ton of work.” And that work is underway. The first step was taken in 2018, when Sheraton's iconic logo was given a bit of a facelift, its first in nearly 40 years. Underneath the wreath, Sheraton’s founding year is stamped, a reminder to travelers that the hotel chain has a history it is proud of. “All of these little ways give nods to the fact that we don't think we're this new slick, beautiful thing that is now unattainable for people who have actually given decades to this brand,” said Amanda Nichols, senior brand director for Sheraton Hotels and Resorts at Marriott International. But part of the problem has been that Sheraton doesn’t have a defined audience in mind. “When you look at needing to meet guests where leisure happens, where business travel happens, and a big portion of where meetings and events happen, that means we are actually a much broader audience segment than some of our more niche and lifestyle brands,” Nichols said. About 30% of the brand’s revenue comes from meetings and events globally, ticking a bit higher in North America. That segment is predicted to be the last to return when the travel industry does recover. The new digs But, presumably it will return, and Sheraton will be ready. The new look is inspired by a "public square," with both public and private meeting spaces galore. The renovation goes beyond new furniture. The hotel's lobby is supposed to inspire the look of a "town center," an open space where everything is "within arm's reach," which is anchored by a "community table," essentially a giant co-working space that can double as a dinning room. The food sold will mostly be portable and won’t be messy. The cocktail menu highlights concoctions with low alcohol content, so business folk can keep meetings going over drinks without fear of losing composure. A craving to be together While any discussion of a "community table" might be poorly timed in the midst of a pandemic, Nichols and Marriott don't expect travelers to be hesitant to adjust. "When we talk with customers today, there's a craving to be together," Nichols said. Highlighted this morning, Marriott was actually one of the owners of Sheraton Phoenix Downtown when the first renovations were made. That’s a rarity in the industry, where owners license each brand from companies. The brand sold the hotel earlier this month for a cool $268 million, about $13 million more than it paid for it—and in the middle of the pandemic. The flip saw Marriott turn that specific hotel into a "showcase" for the "new Sheraton brand vision." “That signals to owners that Marriott is willing to put their money where their mouth is,” said Chuck Kelley, a hospitality consultant. For now, the rebrand won’t yet impact any of Marriott’s marketing strategy in 2021. “I would feel silly if I was spending money on a commercial right now, given the state of our industry,” Nichols said. “We're focused on making sure that we're supporting the hotels in their recovery, capturing any demand that exists when it exists.”

Hotel Marketing

Sheraton Rebrand Aims to Bring Hotel Chain 'Up to Date' With a Focus on Communal Spaces

One problem: The brand doesn't seem to have a defined audience in mind

Ryan Barwick

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Ryan Barwick