Sheraton reveals its ambitions

Although the sub-prime crisis has managed to severely handicap numerous economic sectors (real estate, banking, insurance, transport…) throughout the world, there is at least one industry that seems to have slipped through the holes of the net: luxury hotels. With 900 properties spread out over around one hundred countries on four continents, 155,000 employees and a market value estimated at 16 billion dollars (approximately 11.3 million euros), Starwood Hotels & Resorts demonstrates the sound health of the sector. This group, amongst the largest in the world, owns, manages and franchises, in a totally integrated manner, hotels and residences sporting prestigious names such as St. Regis, The Luxury Collection, Westin, Four Points by Sheraton, W, Le Méridien, as well as the brand new hotels Aloft and Element. The group also runs Starwood Vacation Ownership, a significant real-estate de-veloper and operator of high-class holiday condominium residences.The largest and most international name of the group is nevertheless Sheraton, with 406 hotels and residences in 71 countries. There are no signs that this predominance at the heart of the group will wane: Sheraton has undertaken a development programme that comprises the opening of 54 new hotels and 20,000 extra rooms by 2009. In 2008, the rhythm of openings was extremely high: one hotel every twelve days in countries such as the United States (Dallas, Denver, Minneapolis, Phoenix, Washington), Ireland, Argentina, Egypt and China. Sheraton’s growth plan aimed at revitalising its emblematic name, represents a considerable financial investment: the opening of new establishments in North America will cost around 2 billion dollars (roughly 1.4 billion euros).Sheraton will also acquire three new holiday residences (two in China and one in Carlsbad in California), bringing its number of village centres up to 63. In 2009, it will also reinforce its presence in New York with two new Manhattan establishments in Brooklyn and Tribeca. The growth plan will continue until 2010, the year when Sheraton hopes to have opened 70 new establishments including 30 equipped with a spa. These include half a dozen “super hotels” such as the Sheraton Phoenix (1,000 rooms and 7,400m2 in meeting rooms) and the Sheraton Macao (over 4,000 rooms and almost 25,200 m2 in conference space). Sheraton will also spread its presenceto four new countries: the Czech Republic, Russia, Slovakia and Syria.Not content to limiting its global development plan to openings on a massive scale, Sheraton foresees renovating 50,000 rooms and 100 hotels in the United States (practically one half of its North American properties) and restructuring over 100lobbies. In all, the renovations represent investments coming to 1.3 billion dollars (around 900 million euros). “Our objective is clear: to become the world’s number one in high-class hotels,” explains Hoyt H. Harper II, Senior Vice President in Brand Management for Sheraton Hotels & Resorts. “We can do it: Sheraton, a reference name in hotels, is recognised by 92% of luxury travellers and we benefit from the proven expertise of Starwood in fashioning major lifestyle brands.” Concretely, Sheraton is seeking to rejuvenate its image through lobbies conceived as true centres of lifeand considered as destinations in themselves.A communal table placed at the centre of the lobby will allow several groups to work independently in the one space. Games tables, oversized armchairs, islets of greenery, music and soft lighting will reinforce the sensation of wellbeing and allow visitors to relax. D.B. Kim, Vice President of Sheraton for Design, and his team of architects have worked with the New York firm George Wong Design to renovate tens of thousands of rooms on the basis of three distinct models: classic / timeless, simple / rational and relaxed aesthetics / informal. A new palette of colours inspired by nature will make its appearance:  off white, yellow, ochre, blue, brown and green. Each room will be divided into four distinct zones: a welcome area, a “connection” zone, a rest space and another area for recuperating one’s energy.Clients entering their room will firstly penetrate a welcome area that includesa free-standing bench to rest one’s luggage, shelves, a wooden closet complete with coat hangers and a full-length mirror. The connection zone with a movable desk is conceived to facilitate professional activities or entertainment. “Sheraton Sweet Sleeper Beds” offer a luxurious mattress, a soft duvet and high-quality white sheets (300 thread-count). The bathroom is entirely thought through with free-standing dressing table and shelves replete with products from the “Shine by Blisslabs” range, a new line of toiletries created exclusively for Sheraton by Bliss. This line comprises a mandarin and mint shampoo, a conditioner, soap, body lotion, a refreshing shower gel and a sponge.The partnership with Bliss is not the only one to have been initiated by Sheraton in the context of its renewal programme.In order to allow clients to work, relax or simply stay connected with their entourage while travelling, Sheraton now offers the “Link@Sheraton experienced with Microsoft” service in its lobbies.Initiated in conjunction with Microsoft Corporation, this service includes the availability of free computers with Wi-Fi Internet and Webcam. Clients can therefore consult their email, surf on Internet, find local attractions or print out air tickets in a relaxation space in which they can also eat, have a drink, read newspapers or watch television. Link@Sheraton will be available in 300 hotels by the end of the year. Sheraton has furthermore created a partnership with Core Performance to develop a full physical training and diet programme for clients, resting on four pillars: state of mind, nutrition, movement and recuperation. In more concrete terms, this new programme depends on modern fitness rooms, more nutritious diets, in-room training sessions on demand, online access to physical preparation programmes personalised by Core Performance andan original convention and meeting programme for improving performance.Core Performance programmes were launched in summer this year in Sheraton establishments all over the world and will continue throughout 2009. “More than the ideas themselves, what is important is their execution,” underlines Hoyt H. Harper II. “Whether we’re talking about a permanent Internet connection or transforming the lobby into a true living space, the essential is that these ideas can apply to all types of travellers in our hotels.”Finally, the renewal of the Sheraton name is also taking place through the web. The brand has in fact launched a new web site baptised www.sheratonresorts.com. Dedicated to 62 high-class hotel complexes under this name, the web site presents Sheraton services and allows visitors to discover destinations, each more exotic than the last: Arizona, Australia, California, Egypt, Spain, Hawaii, Indonesia, Mexico, Shenzen, Thailand… Sheratonresorts.com gives travellers the means to personalise their holidays depending on their centres of interest: family activities, beach, golf, casinos, excursions, shows and concerts, night life, shopping, spas, tennis, skiing, water sports… Once the destination has been chosen, the web site displays comprehensive information completed by photos and recommendations. Three questions for… Oliver Bonke, Vice President for Sales and Marketing at Starwood Hotels & Resorts
Sheraton has undertaken a very aggressive international development programme. Which are the countries from which you expect the most results?Oliver Bonke: “Numerous regions in the world already show impressive growth rates – all the better. But it’s true that the Middle East stands out in particular for its strong demand that we are seeking to more fully satisfy. I am notably thinking of countries such as Saudi Arabia, the United Arab Emirates, Kuwait, Qatar…”
Competition in the luxury hotel sector is said to be very fierce. What is the key to standing out?O.B.: “The main strength of Starwood is that it owns numerous prestigious brand names that allow us to rely on long-term growth. Moreover, our international stature is due to the fact that we manage to adapt to very different markets. And when we need external expertise, we don’t hesitate to surround ourselves with top specialists in terms of services. What is certain is that the price war is no solution; it is necessary to find a balance between a luxury offer and an appropriate price.”
You have worked for Starwood Hotels & Resorts for almost twenty years. What changes have you noticed in the luxury hotel business?O.B.: “It is above all the clientele itself that has changed: we welcome more and more travellers from China, Vietnam, Eastern Europe… This mixtureof cultures, languages and religions is a fascinating challenge: our teams must constantly adapt to increasingly diverse demands. Client expectations have nevertheless not really changed: everyone wants to feel at home ina hotel. This does not stop us from constantly innovating by offering more services than could be found in hotels twenty years ago, such as computers with Wi-Fi or fitness rooms.”