Who Owns Sheraton? Ownership & Parent Company Explained
A Look Into The Incredible History of The Sheraton Hotel
Who Owns Sheraton?
Sheraton Hotels & Resorts traces its origins back to 1937 when Ernest Henderson and Robert Moore acquired their first hotel in Springfield, Massachusetts.
Unlike many hotel chains that started as a single property, Sheraton was born out of a strategic acquisition model, where the founders quickly expanded their portfolio by purchasing well-established properties.
By the early 1940s, the Sheraton brand was officially introduced, and it became the first hotel chain to be listed on the New York Stock Exchange.
This move set Sheraton apart, establishing it as a leader in the hospitality industry at a time when few chains operated on a national scale.
Throughout the 1950s and 1960s, the company expanded aggressively, acquiring properties across the United States and later venturing into international markets.
Sheraton’s global reach began in earnest in the 1960s, as it became one of the first U.S.-based hotel brands to establish a presence overseas. The company saw significant growth in Latin America, Europe, and the Middle East, positioning itself as a premium hospitality provider.
As travel and tourism flourished in the post-war era, Sheraton capitalized on the rising demand for high-end accommodations. The brand became synonymous with luxury and comfort, attracting business travelers and tourists alike.
By the late 1980s, Sheraton had built a solid reputation as a globally recognized hotel brand, with properties in key metropolitan cities, resort destinations, and business hubs worldwide.
Change of Ownership (Pre-Marriott Acquisition)
Before its eventual acquisition by Marriott International, Sheraton underwent several changes in ownership that shaped its development as a leading global hotel chain. While the company experienced steady growth throughout the mid-20th century, it faced increasing competition from other hospitality giants, leading to shifts in management and strategy.
During the 1980s, Sheraton introduced new concepts such as Sheraton Towers, designed to appeal to high-end business travelers. This period also saw the rise of corporate takeovers in the hospitality sector, leading to increased consolidation in the industry. Sheraton, though a strong brand, faced challenges in maintaining its competitive edge against newer luxury hotel brands.
As travel habits evolved, Sheraton had to adapt to changing consumer expectations, and its ownership played a crucial role in determining its long-term direction. By the late 1980s and early 1990s, the brand was viewed as an industry leader but lacked a strong modern identity compared to rising competitors.
During this time, Sheraton’s parent companies explored various financial strategies to maintain its market position. This phase marked the beginning of a series of acquisitions and mergers, with Sheraton becoming a key asset for corporations looking to expand their presence in the global hotel market.
The Acquisition of Sheraton By The ITT
In 1968, Sheraton was acquired by ITT Corporation, a global conglomerate with interests in various industries, including telecommunications, defense, and hospitality. ITT’s acquisition of Sheraton marked a major turning point, as the company sought to elevate the brand’s reputation and expand its international reach.
Under ITT’s leadership, Sheraton continued its aggressive expansion strategy, opening new properties in Europe, Asia, and the Middle East. This period saw the introduction of signature Sheraton hotels in major cities, catering to business travelers and high-end clientele.
ITT’s financial backing enabled Sheraton to modernize many of its existing properties, reinforcing its status as a leading hospitality brand.
However, while ITT’s acquisition provided Sheraton with resources for expansion, it also led to challenges in brand differentiation. The conglomerate operated in diverse industries, which sometimes meant that hospitality was not always the central focus of its corporate strategy.
While ITT’s investment helped Sheraton maintain a strong presence in the market, it did not significantly reposition the brand in an evolving hospitality landscape. By the mid-1990s, ITT Sheraton faced increasing competition from hotel chains that focused on innovative guest experiences and modernized property designs.
This led to a pivotal moment in 1997 when ITT Corporation itself became a target for acquisition, bringing Sheraton into yet another era of ownership changes.
The Acquisition of ITT Sheraton By Starwood Hotels and Resorts
In 1998, Starwood Hotels and Resorts acquired ITT Sheraton after a competitive bidding war, marking one of the most significant deals in the hospitality industry.
Starwood, a relatively young company at the time, had ambitions to redefine luxury travel, and the acquisition of ITT Sheraton provided the perfect opportunity to enhance its global footprint.
Under Starwood’s ownership, Sheraton underwent a major transformation. The company introduced extensive renovations to reposition Sheraton as a more upscale brand within its portfolio.
It also leveraged Sheraton’s existing infrastructure to expand its loyalty program, a key factor in maintaining customer engagement in an increasingly competitive market.
Despite Starwood’s efforts to modernize Sheraton, the brand struggled with maintaining a consistent identity across its global properties.
Some hotels thrived under the new ownership, benefiting from updated interiors, improved service quality, and enhanced brand marketing.
However, many Sheraton properties still carried an outdated image, which posed a challenge for Starwood in aligning the brand with its broader luxury portfolio.
While Starwood continued investing in the brand, it faced increasing competition from rising hospitality groups and boutique hotels, making it difficult for Sheraton to maintain its position as a premium global brand.
Marriott International Acquires Sheraton Hotels and Resorts
In 2016, Marriott International completed its historic $13.6 billion acquisition of Starwood Hotels and Resorts, bringing Sheraton under its vast hospitality umbrella.
This merger created the world’s largest hotel company, with over 30 brands and a combined portfolio of more than 7,000 properties.
Marriott’s acquisition of Sheraton signaled a new chapter for the brand, as the company aimed to revitalize its image and improve its operational efficiency.
The integration process was complex, requiring Marriott to consolidate loyalty programs, restructure management strategies, and assess the performance of Sheraton properties worldwide.
Marriott recognized that Sheraton needed significant upgrades to compete with modern luxury and business hotel brands.
One of its first major initiatives was a $500 million investment in renovating Sheraton properties, focusing on improving guest rooms, upgrading common areas, and enhancing the overall customer experience.
Marriott also repositioned Sheraton within its brand portfolio, emphasizing its role as a premium, full-service hotel chain catering to both business and leisure travelers.
This acquisition not only strengthened Marriott’s global presence but also ensured Sheraton’s continued relevance in a highly competitive industry.
Optimizing the Modern Customer Experience
Under Marriott’s leadership, Sheraton has embraced a customer-first approach, focusing on enhancing guest experiences through digital innovation and modern design.
One of the key strategies has been the introduction of “Sheraton 2020,” a five-year plan aimed at revitalizing the brand with modernized interiors, co-working spaces, and cutting-edge technology in guest rooms.
Marriott also integrated Sheraton into its Bonvoy loyalty program, allowing guests to enjoy benefits across Marriott’s extensive portfolio. These changes have helped improve Sheraton’s appeal, particularly among younger travelers and business professionals.
Another important shift has been the emphasis on delivering a consistent experience across all Sheraton properties. Marriott has worked closely with franchise owners to ensure that Sheraton hotels meet the brand’s new quality standards.
The company has also leveraged data analytics to understand customer preferences, optimizing pricing, service offerings, and marketing strategies.
Through these efforts, Sheraton has positioned itself as a competitive brand within the premium hospitality sector, attracting a new generation of travelers while maintaining its legacy of excellence.
A Bright and Flourishing Future
Looking ahead, Sheraton is set to expand its presence in key global markets, with Marriott continuing to invest in new properties and renovations.
The brand is expected to play a central role in Marriott’s international expansion strategy, particularly in Asia and the Middle East, where demand for high-end hospitality is growing rapidly.
New Sheraton properties are being designed with a focus on modern luxury, blending contemporary aesthetics with innovative amenities to appeal to today’s travelers.
Beyond expansion, Sheraton is also evolving to meet the demands of a changing hospitality landscape.
As travel trends shift towards experience-driven stays, Sheraton is focusing on enhancing guest interactions, improving digital engagement, and offering personalized services.
With Marriott’s continued investment, Sheraton is poised to thrive in the coming years, ensuring that it remains a leading name in the global hotel industry.
FAQs about Sheraton ownership
1. Who currently owns Sheraton Hotels & Resorts?
Answer: Sheraton Hotels & Resorts is owned by Marriott International, which acquired the brand in 2016 as part of its $13.6 billion purchase of Starwood Hotels and Resorts. This acquisition made Marriott the world’s largest hotel company, and Sheraton became one of its premier global brands. Since then, Marriott has invested heavily in revamping Sheraton properties to enhance guest experience and brand consistency.
2. When did Sheraton become a part of Marriott International?
Answer: Sheraton officially became part of Marriott International in 2016, when Marriott completed its acquisition of Starwood Hotels and Resorts. The merger included multiple brands such as Westin, W Hotels, St. Regis, and The Luxury Collection. Sheraton, one of the most well-known brands in the portfolio, underwent a major transformation under Marriott’s leadership to improve its offerings and modernize its properties.
3. How has Sheraton changed under Marriott’s ownership?
Answer: Under Marriott’s ownership, Sheraton has undergone significant renovations and branding efforts to align with modern hospitality trends. The company launched the “Sheraton 2020” initiative, a five-year plan focused on property upgrades, improved guest experiences, and new amenities such as modernized lobbies and co-working spaces. Additionally, Sheraton was fully integrated into Marriott Bonvoy, the company’s global loyalty program, allowing guests to earn and redeem points across Marriott’s vast hotel network.
4. What was Sheraton’s ownership history before Marriott?
Answer: Before becoming part of Marriott, Sheraton had multiple ownership changes:
- In 1968, Sheraton was acquired by ITT Corporation, which helped expand the brand internationally.
- In 1998, ITT Sheraton was purchased by Starwood Hotels and Resorts, which sought to modernize the brand.
- In 2016, Marriott International acquired Starwood, bringing Sheraton under its control and initiating major upgrades to the brand.
5. What is the future of Sheraton under Marriott?
Answer: Marriott continues to invest in Sheraton, focusing on modernization and expansion in key global markets. The brand is expected to strengthen its presence in Asia, the Middle East, and Europe, where demand for premium hospitality is growing. Sheraton is also adapting to evolving travel trends by enhancing digital services, redesigning public spaces, and improving luxury offerings. With Marriott’s backing, Sheraton is set to remain a strong player in the hospitality industry for years to come.
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