Marriott International is putting its money where its mouth is for the re-launch of the Sheraton brand as on Thursday it became the majority capital partner in the US$255 million acquisition of the 1,000-room Sheraton Grand Phoenix, which it will renovate to showcase the new vision for the brand. The seller was an affiliate of the City of Phoenix.
Fort Lauderdale-based investor TLG Investment Partners, headed by Leland Pillsbury and Christopher Nieberding, and Concord Wilshire Capital, led by Nate Sirang, also have taken an equity position in the property.
Marriott has plans for a significant renovation of the 33-story, downtown Phoenix hotel to be completed next year covering guest rooms and public space. “The hotel will provide a living and breathing showcase of our new vision for the Sheraton brand, underscoring our commitment to restore the brand to its leadership position,” said Arne Sorenson, president and CEO, Marriott International. “Going back to Sheraton’s roots as being the heart of the community, the renovated hotel will showcase the brand’s new focus on services and design that enable socialization, productivity and personalization, featuring collaborative venues and technology that enable unique experiences. The Sheraton Grand Phoenix will become a wonderful destination for locals and out-of-towners.”
Earlier this month, the company revealed its comprehensive brand transformation strategy, creating a pop-up model lobby in New York City for owners, franchisees and other stakeholders to experience and evaluate first-hand.
Marriott International estimates that owners of Sheraton properties in the U.S. have already committed to invest more than US$500 million to remodel Sheraton properties under the new standards.
While Marriott International remains committed to its asset-light business strategy, the company took a similar approach as it worked to reposition the Marriott Hotels brand five years ago. The company purchased and renovated the Charlotte Marriott City Center, which then served as a living innovation hotel to further develop the brand.
Like the Charlotte property, Marriott said it expects to sell the 10-year-old Sheraton Grand Phoenix, subject to a long-term management agreement.