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Sheraton Hotels & Resorts
Sheraton Hotels & Resorts is an international hotel franchise serving both business and leisure travelers. Besides being a major chain itself, Sheraton is one of the biggest hotel franchises within the broader Marriott International portfolio, the world’s largest hospitality and lodging company. From a brand positioning perspective, Sheraton Hotels & Resorts in North America attracts the premium tier of traveler, whereas in Asia the brand is decidedly focused on, and perceived as being within, the luxury tier. Typical amenities offered by the flagship Sheraton-branded hotels include fine-dining options and fitness centers; meanwhile, Four Points by Sheraton, a sister chain of hotels, is the parent company's budget-friendly brand for road warriors, offering fewer amenities and a lower cost for guests (or their companies footing the bill). More about the cost of owning a Sheraton Hotels & Resorts franchise below.
Facts & figures
Sheraton Hotels & Resorts Franchise Formats Offered
Sheraton's primary offering is the standard Sheraton Hotel format. Sheraton Hotels are full-service hotels that target discriminating business and leisure travelers. The hotels range in size from approximately 130 to 1,000 guest rooms. Sheraton Hotels feature a variety of food and beverage options, including one or more restaurants and lounges, unique social spaces, room service, catering and banquet services, and signature guest initiatives. The hotels also offer meeting rooms and ballrooms for business functions and social events. Business centers provide faxing, copying, and printing facilities. There are dedicated recreational and fitness centers, frequently offering a swimming pool, whirlpool, and a separate exercise/equipment area. Though there are many hotels on the market, Sheraton’s recognizable name and reputation help it to stand out and attract regular, loyal customers, regardless of the destination city.
In certain cases, Sheraton has considered allowing franchisees to include a rental residence or condo aspect to supplement the main hotel format. Such proposals are considered on a case-by-case basis and subject to additional rules and agreements. Any Sheraton condo or residential component can only be included as an adjunct to a standard Sheraton-branded hotel format.
Finally, franchisees may opt to add a Shine for Sheraton spa (Shine Spa) to their standard hotel format. Shine Spas can only be opened and operated as part of a Sheraton Hotel franchise.
Despite a naming crossover, Four Points by Sheraton, a sister hotel chain within Sheraton's parent corporation Marriott International, is offered and operated as a separate franchise brand.
Sheraton Hotels & Resorts Franchise Opportunities - History
Sheraton Hotel & Resort’s long-reaching international presence can be traced back to its New England roots, and just a bit of funny happenstance. After being started by two Harvard classmates, Ernest Henderson, and Robert Moore, what would eventually become the Sheraton team bought their first hotel in 1933 in Springfield, Massachusetts. Not long after, Henderson and Moore purchased a hotel in the heart of Boston boasting “The Sheraton Hotel” in large neon letters. After realizing take-down of the sign would be too costly, the two decided to have their hotel chain take on the Sheraton name. Within 10 years, the company grew enough to be the first hotel chain on the New York Stock Exchange. Other firsts for Sheraton include the first automatic electronic reservation system and the adoption of the first toll-free 800-number for direct guest access. In 1998, Sheraton was purchased by Starwood Hotels and Resorts Worldwide, which in turn was acquired by Marriott International in 2016, forming the world’s largest hotel portfolio.
Sheraton Hotels & Resorts Franchise Cost / Initial Investment / Sheraton Hotels & Resorts Franchise Income
Opening a Sheraton Hotels and Resorts franchise costs anywhere from $53,521,090 to $82,627,590 in estimated initial investment, excluding certain costs such as acquiring the underlying real estate, building and other permitting, and related expenditures.
Included in that initial investment is a franchise application fee of:
- $85,000 plus $300 per guest room over 200 guest rooms for a Sheraton Hotel that is entirely new to the system, or
- the greater of $150,000 or $500 per guest room for an application for an existing Sheraton Hotel or to convert a property already managed by Sheraton or one of its affiliates into a franchised location, and
an additional $27,000 for an application that includes rights to run a Shine Spa (which can only be developed in conjunction with a Sheraton Hotel).
If the prospective franchisee's application is rejected, Sheraton will return the application fee (less $10,000 and the franchisor's costs to review the application). If the application includes a Shine Spa $12,000 and the franchisor's costs to review in the case of an application that includes Shine Spa).
Sheraton Hotels & Resorts Franchise System Size and Composition
There are over 500 hotels in operation or development within the Sheraton system, representing nearly 200,000 guest rooms. About half of the brand's locations are franchised and around 60% are located outside of the United States. Systemwide, Sheraton hotels generated some $6 billion in sales.
The Marriott International Portfolio
Sheraton is not just a giant hotel chain in its own right, but one hotel brand within the even larger Marriott International portfolio, which owns the eponymous Marriott Hotels & Resorts franchise, among many others. Sheraton's sister brands franchised by Marriott International, other than Marriott and Four Points by Sheraton, include St. Regis Hotels & Resorts, The Ritz-Carlton, JW Marriott, Edition, The Luxury Collection, W Hotels, Bulgari Hotels & Resorts, Delta Hotels by Marriott, Marriott Executive Apartments, Autograph Collection Hotels, Le Meridien, Tribute Portfolio, Westin Hotels & Resorts, Renaissance Hotels, Gaylord Hotels, Courtyard by Marriott, Springhill Suites by Marriott, Residence Inn by Marriott, AC Hotels by Marriott, Aloft Hotels, element by Westin, Protea Hotels by Marriott, Fairfield by Marriott, Towneplace Suites by Marriott, and Moxy Hotels.
