Newsmakers: Starwood Advances Sheraton, Westin Synergies

<B> Newsmakers: Starwood Advances Sheraton, Westin Synergies</B>

By By Maria P. Vallejo

<I>New York</I> - Starwood Hotels & Resorts Worldwide last week announced plans for developing a sales force and frequent guest program as the hotel group's CEO, Juergen Bartels, kicked off a 15-city worldwide employee tour.

Starwood plans to share the best qualities of Westin and Sheraton via regional offices and executives, while still maintaining the individual chain images through brand-specific programs, Bartels said.

A considerable factor in how brand differentiation will take place is how the combined sales and marketing force will handle customer interaction and the negotiations process. While the exact structure and program of the department has not yet been determined, Starwood plans to solicit advice from Sheraton's already existing advisory boards, ranging in focus from corporate transient to meetings business, said the newly announced senior vice president of sales and marketing for Starwood Hotels. David Van Kalsbeek was Sheraton's former senior vice president and director of marketing and strategic planning.

The start of the survey process is pending the naming of Starwood's director of corporate sales worldwide, which is imminent. Starwood already has chosen a candidate. Once someone is signed, the new director will help put together Starwood's corporate sales plan and take it to the boards. Members will help determine whether corporate negotiations will be conducted through one point of contact for all the brands, including Westin, Sheraton, the Luxury Collection (St. Regis), Four Points and "W"; or if they will be handled individually for each brand.

The responses from the corporate individual and group travel buyers on the advisory board also will help Starwood determine the intricacies of how cross-selling will be conducted, while still differentiating between the three upscale hotel brands. "We have a Sheraton culture, and we have a Westin culture," Bartels said. "We will continue to have separate Westin and Sheraton cultures. We will not blur the names into each other."

Along with the convergence of the sales and marketing forces, both Westin and Sheraton will allow mutual frequent guest program point redemption at the other's brand, affecting more than 550 participating hotels in 61 countries. A new combined frequency program, adopting Westin's program name "Premier," will be announced by November. It will share the program among the four brands.

The combined program will use an integrated property management system developed by Sheraton to help identify its members. About 85 percent of Sheraton's properties are already using the $90 million Reservatron IV, while Westin has started to install the system. A complete rollout is expected by year-end. "Sheraton had a head start on us," said Bartels, referring to Westin. "Westin had a dream and we found Westin's dream in Sheraton."

Reservations offices were consolidated with shut downs at Sheraton's Raleigh, Va., and Westin's Omaha sites. Sheraton's Austin and Westin's Salt Lake City offices increased their size to compensate for the closures.

Dan Weadock, Sheraton's former president and CEO, will help integrate the back office systems and otherwise leverage the assets of Westin and Sheraton under the title of special assistant to Barry Sternlicht, Starwood's chairman.

Room revenue attributed to Internet commerce is projected to reach $75 million this year compared with $7 million last year. "The future is here. Electronic commerce is starting now," Bartels said.