Starwood unveils Tribute brand for independent hotels

In a move that will allow its most-valued customers to gain access to some of the world's best independently owned hotels, Starwood Hotels & Resorts Worldwide, Inc, introduced its Tribute Portfolio on Thursday.

The new brand will enable members of the company's Starwood Preferred Guest loyalty program to stay at unique hotels such as the iconic Royal Palm South Beach in Miami Beach, Florida, that aren't part of the Starwood chain while still earning reward points and other benefits.

Starwood operates more than 1,200 hotels globally and its brands include the Westin, Sheraton and W Hotels.

"About half of the world's hotels are independent and the other half are branded. In a recent survey, 89 percent of our SPG members wanted to stay in independent hotels, particularly for leisure travel and special occasion trips to unique destinations. They can do that confidently now with our Tribute Portfolio," Starwood CEO Adam Aron said at an introductory press conference in New York.

Aron said Tribute hopes to sign up about 100 unique independently owned and operated hotels over a five-year period.

In addition to the Royal Palm, Tribute will debut at hotels in Asheville, North Carolina; Savannah, Georgia; Charleston, South Carolina; and Nashville, Tennessee.

"Eventually we will include hotels in Europe, Asia and Latin America," Aron said.

Tribute will benefit three groups according to Aron. "Independent hotels will be able to benefit from the Starwood system and yet still maintain their most important quality - independence," he said.

The independents will be able to tap into Starwood's extensive marketing apparatus and gain access to its customer list.

The other groups that will gain from the new initiative include Starwood customers who will have more choices when they travel and the company's shareholders, Aron said.

"We expect Tribute to generate additional revenue and profit."

Tribute and the hotels that become a part of the brand will appeal to the high-income traveler.

"Nearly 50 percent of upper upscale hotels in the US are independent, and 60 percent of four-star hotels globally are not affiliated with a brand," said Dave Marr, senior vice-president and North America and Global Brand Leader for Tribute. He added this leaves a vast marketing opportunity for Tribute.

"In speaking with many owners, it is clear that they welcome the opportunity to partner with Starwood to enhance the performance of their independent hotels. They are attracted to the benefits that will come from the power of SPG and our high-end Starwood sales customers coupled with the flexibility of minimal brand specific standards," he added.

Marr said Tribute would target a large audience that will include millenials and baby boomers.

When asked if Starwood might take an interest in some of the independent hotels under the Tribute brand, Aron did not rule out the possibility.

"In the beginning we will just be providing a marketing opportunity for the hotels. However, we would not be opposed to extending the relationship and taking an ownership stake if that suits both parties in the future."

Marr said the addition of the Tribute portfolio means another way to provide service to valued customers if Starwood hotels fill up at certain times of the year.

paulwelitzkin@chinadailyusa.com

(China Daily 04/18/2015 page10)