Starwood Brands Take Gold And Silver

W hotels catapulted into first place in the upper upscale category of this year's Top U.S. Hotel Chain Survey from the number-five spot in a field of 10 last year. This is a significant achievement for W Hotels' parent Starwood Hotels & Resorts Worldwide, considering it only created the W brand in 1998. Yet, the achievement also is bittersweet for Starwood because in capturing the topmost spot, W Hotels knocked another of Starwood's brands—Westin Hotels & Resorts—out of a position it occupied for the past two years. Consequently, Starwood can pat itself on the back for capturing the two top spots in the category. Rarely has a multi-brand company enjoyed this distinction. Meanwhile, Loews Hotels finished third.

Survey respondents were asked to rank chains in the category on the basis of 13 criteria. W scored highest in six areas, including the ease in arranging individual travel. Westin scored highest in three, including the effectiveness of its corporate rate programs; Loews beat the competition on two counts, including for its helpful and courteous staff. Ironically, Le Meridien Hotels & Resorts, the fourth-place winner, also scored highest in two criteria, including the overall price-value relationship of its hotels.

"Design matters," said Barry Sternlicht, Starwood chairman and CEO, in addressing the reasons for W Hotels' success. "Given the choice, travelers will opt to stay at a hotel where there's a strong design consciousness. The comfort and amenities they expect are there and the high level of design makes the property an exciting place to be."

Sternlicht was speaking at a December preview of the latest W Hotel—the fifth in New York and 16th chainwide—to open, the 509-room W Hotel New York Times Square. Sternlicht said the launch of each new W allowed the team of designers and operations people to further refine the concept. "Each one we do is different, yet they all share the same overall contemporary sensibility," he said.

As part of their appeal, W Hotels have become known for their trendy restaurants and bars, which, according to Sternlicht, can have a downside if not properly managed. "You want your bars and restaurants to be successful, of course, because that brings attention and visibility to the property. But we've been in a position where they've drawn such crowds that you're controlling chaos in a sense," he said. While the restaurants and bars are open to the public, they're intended for hotel guests, so balancing the needs of each group becomes critical. "We're always taking steps to improve the situation as best we can," he said.

During 2001, a pair of W Hotels also opened in Chicago and additional properties are scheduled to come online in San Diego, Washington, D.C., and Mexico City this year. Mexico City is the brand's second international location after Sydney.

While W Hotels, Westin and Loews suffered in occupancy and room revenues in 2001 along with the rest of the deluxe, upper upscale and upscale chains, those declines can be minimized, comparatively speaking, if a guest amenity or service catches the public's attention and helps to separate the brand from the competition.

In 1999, Westin accomplished this goal with the launch of the Heavenly Bed promotion. In 2001, the brand tried to build on that momentum by launching a companion Heavenly Bath program.

"The original concept behind the Heavenly strategy was to go back to the basics of what customers—frequent business travelers chief among them—look for and value in a hotel room," said Starwood vice president of brand operations in North America Sue Brush, whose responsibilities include Westin. "When you compile a list of those basics, a good night's sleep and a well-working shower are at the top of the list."

The highlights of the Heavenly Bath program included dual shower heads and a curved shower rod, which provided for additional elbow room and, according to Brush, "no shower curtain cling." Oversize spa towels and upgraded velour bathrobes were added as well. "As a result of these efforts, Westin has become known as the upper upscale chain that caters to your creature comforts," she said.

The bath program now is available in 40 percent of the chain's properties and is being built into new properties from the start. In 2001, Westin opened five properties, having opened a record 23 properties the previous year.

Similarly at Loews, the challenge in a difficult year—in which many hotels cut back on the degree of services and amenities—was to keep guest satisfaction high. "We've been building the brand for well over 10 years and see the 16 hotels that make up the portfolio as a collection of unique one-of-a-kind properties, each with a distinct personality," said Jack Adler, who became president and COO in late 2000. "So we're looking to create an experience that, when guests leave, they really know the personality of the hotel."

In 2001, Loews opened the Hard Rock Hotel in Orlando, the second of three properties it will operate in a joint venture with Universal Studios. The chain also assumed management of the Jefferson Hotel in Washington, D.C.