Starwood Hotels & Resorts' Sheraton brand this month officially launched a new lobby lounge that provides wireless Internet and computers for guest use as part of a $4 billion worldwide makeover.
"The objective is to take one of the most iconic brands around the globe and give it new life and energy," Starwood CEO Frits van Paasschen said.
First announced in May, Sheraton's Link @ Sheraton offering is the result of a partnership with Microsoft Corp. and is designed as a social space in Sheraton lobbies where guests can access free wireless Internet service and computer stations to check e-mail, print boarding passes or use such accessories as Webcams, all of which van Paasschen said caters to the increasing mobility needs of the corporate traveler. The lobby lounge also has televisions, newspapers and a café.
The upgraded lobby now stands in about 100 of Sheraton's properties and is expected to be in 300 hotels worldwide by the end of this year, said Sheraton vice president Hoyt Harper II. The initial installations brought extra revenue and positive feedback to the hotels, he said.
"The response has been outstanding," Harper said. "Customers have been spending more time outside of the room. They've also been spending more money on food and beverage service."
The Link @ Sheraton is part of $400 million in brand initiatives, which are part of an almost $4 billion overhaul of the Sheraton brand and its 408 hotels in 75 countries
(BTNonline, April 28). The strategy includes $1.3 billion in renovations and more than $2 billion in new hotel openings, according to Starwood.
Although Sheraton is Starwood's largest brand, it lags in satisfaction levels in such surveys as J.D. Power and Associates' 2008 North America Hotel Guest Satisfaction Index Study and Business Travel News' most recent U.S. Hotel Chain Survey
(BTNonline, March 17). Hotels that have undergone renovation already have shown improved guest satisfaction scores, according to Harper.
As a part of the overhaul, the brand also is removing 38 underperforming properties. Nine already have been removed with more slated before the end of the year, Harper said.
Sheraton is 20 months into the three-year initiative, Harper said. Investments will continue until the end of 2009.
The weakening U.S. economy, which has slowed the overall hotel development pipeline
(BTNonline, Aug. 6), will not impair the Sheraton redevelopment plan, van Paasschen said. Sheraton currently boasts the largest pipeline in absolute numbers among Starwood's brands, and developer interest remains high, he said.
Also, continuing to build during times of declining occupancy has its advantages, said van Paasschen.
"To add and invest now is to put oneself in the position to enjoy the next cycle," van Paasschen said. "In difficult times like we are in now, you have to take the long-term view."