Skift‘s Sean O’Neill audits the Hilton and Marriott 10-Ks and makes some interesting observations. Some key takeaways:
- Hilton and Marriott report similar number of loyalty program members. They do not report active members. Marriott reports a slightly higher number, Hilton higher growth rate.
- Both chains report that 78% of their revenue comes from the U.S. Their international footprints are smaller than you’d think!
- Marriott has more than twice as much booked liability for hotel award night redemptions as Hilton. But that does not mean “Marriott’s loyalty program generated a far higher total volume of rewards for members than Hilton’s did” since Hilton pays hotels less when members redeem than Marriott does.
- Marriott Homes & Villas is immaterial to its financials.
- Hilton touts diversity and inclusion goals and spent 800 words in its 10-K on its climate plan.
- Sheraton is still awful after all these years. It kicked out the worst properties in 2008. Then launched a $100 million marketing effort in 2015.
And after Marriott acquired Starwood, forced the bottom 25% of properties to spend $500 million on renovations. Yet revenue per available room in 2023 was flat with 2017, despite over 20% inflation during that period.
Maybe they just need to bring back the Belong commercials?
- Marriott is moving to 4% royalties on food and beverage revenue, up from 2% – 3%.
In the late 1980s, I served on Sheraton’s Customer Advisory Board, made up of those of us who plan meetings for corporations and associations. It was when John Kapioltas was CEO. (What a nice man. Was saddened to learn he died not that long ago. https://www.legacy.com/us/obituaries/nytimes/name/john-kapioltas-obituary?id=33604967.) What was interesting even then was the unflagging for not meeting standards.
What I’ve learned in my years in our part of the industry is that ownership matters far more than the name on the door. Alas, I imagine that casual travelers and even biz travelers don’t know about owners; I know meeting and event planners do not ask the question much.
It’s probably telling that Marriott is currently hiring for a Brand Director over the Sheraton brand.
I think Sheraton gets a bad rap.
The last Sheraton hotel where I stayed had a Google review average of only 3.6 stars, and the room rate was almost worryingly low for the high cost of living area, but I was only to be there one night.
I booked it and it was totally fine.
I can see why some would be disappointed. Two decades ago, Sheraton represented a sort of entry-luxury cachet to the middle class. Service was polished.
Today, service is satisfactory. The whole brand is just satisfactory. Nothing luxury about it. Some consumers are expecting more than that.
But I find most Sheraton hotels priced appropriately for the cachet and the service level.
Used to stay at the Sheraton Gateway LAX 3x/year around 15+ years ago. They had $99 rates, there was free parking on that road behind the hotel and Shula’s Grill in the lobby had a good happy hour.
Haven’t stayed at a Sheraton since then though.
Simple prices are too high for mediocre experiences and low quality food /dining
I can get a better hard product from other brands
Marriotts point redemptions are way too high compared to. Hyatt & IHg and then insult to. Injury they want resort and destination fees on award or revenue
Worse under Marriott the decent sweet sleeper reasonably plush has become a concrete prison bed
Example Sheraton Times Square
Not sure what DEI goals for a hotel chain would be. Obviously, white men are massively underrepresented in their housekeeping staff. I would suggest removing the ones who authored the DEI goals and retraining them for housekeeping duties.
Sheraton and Westins are almost exclusively middle-aged to old properties that have seen multiple room and lobby facelifts. There probably are some, such as Vacation Club Westin, but when is the last time we’ve seen a new-construction Sheraton or Westin. Any new development is going to be a legacy Marriott brand.
I think Sheraton gets a bad rap. I’ve spent countless nights in the Sheraton Gateway Toronto Airport, and it is a great business hotel with wonderful staff. It was really hit for being the COVID hotel during COVID, but is refurbished and excellent. I find things are really dependent on the property amd recency of renovation (for all brands). I also find that legacy Starwood hotels are better at loyalty benefits than Marriott ones.
For customer experience, the whole point of these portfolio brands is to set a consistent expectations. When you go to a Springhill Suites, you get a large room with sofa bed, free-but-mediocre Marriott breakfast, in room microwave mini fridge. When you go to a JW Marriott, you get stunning interior design, with an emphasis on “modern” luxury, as opposed to the “old-world” luxury of a Ritz-Carlton and it’s over the top service and amenities.
With Sheraton, what do you get exactly? It’s really unclear in the US. There’s no brand identity, stemming from the problem where Starwood never had a budget category (Four Points is a late-comer, and is still more expensive than Fairfields).
So the Sheraton brand languishes in the US, and the longer Marriott does nothing to revive the brand out of indecision, the worse it gets. But kinda like how Buick’s excellent reputation in China saved it from the GM axe in 2008, Sheraton has a stellar reputation and standards in Asia. I suspect if it weren’t for Asia, Marriott would have taken real action with Sheraton. But instead, it does really seem like they simply don’t *know* what to do, and I’m guessing some long-tailed contracts made under Starwood complicate what’s even possible right now.
If it were up to me, Marriott would take North American Sheratons and force a rebrand-or-buyout to either Westin, Delta, or Marriott standards. Then end the brand in North America for at least a decade, and retain and experiment in Asia. After a decade, either revive the brand at the new standard in North America, or start ending the Sheraton brand ex-North America as well (just on a much-longer timeline).
Has much as it pains me as a former Sheraton employee (during college) and working on the SPG program prior to the merger with Marriott, they need to trash the brand and just remodel as Marriotts or Fairfields (maybe Courtyards). They have lost their lustor and are a not the goto business and vacation spot they were back in the day. 🙁
It’s weird, but the Sheraton Sweet Sleeper is my favorite hotel mattress. I am more likely to choose a Sheraton than a hotel from similar brand.
@brteacher
The Sheraton Sweet sleeper is just a name but once had a quality consistent standard
You likely go to a property that hasn’t updated their beds
Yes they were good under SPG.I too chose the brand for reliability with the bed
Marriott is killing the brand off further killing what good was left of it
Beds are horrible now that have refreshed the mattress
Sheraton does suck in the US, but in fairness, so do most hotels. Why is it that service and product can be so much better overseas than here at home?
@ Chopsticks. Excellent idea and with just a few months of training they may adequately meet the staff’s housekeeping standards.
Sheratons have traditionally had Clubs Rooms as I recall, whereas Westin does not. I have always had good experiences at a Sheraton. I try to pick a hotel with a Club. Marriotts now has the MClub in certain properties. I just like the convenience when I travel on business. I have stayed at Sheratons’ in Asia and South America and had great experiences.
Just stayed at a Sheraton in Myrtle Beach (kids sports related trip, dont judge). It really was not that bad for $100 a night. Bed was comfortable, room decent size ( I guess I was upgraded a bit) and they actually had room service. The front desk was super active on the Bonvoy app chat (which I love since I find that to be very helpful instead of calling for basic questions and/or simple requests). Granted I was in Myrtle Beach so a Sheraton is comparatively better than most things there but I was not unhappy staying there.