Sheraton

Overview

Sheraton is a full-service hotel brand within Marriott International, positioned in the group’s premium portfolio. Founded in the United States, it operates across city centres, airport markets, resorts and major business destinations. Properties typically combine guestrooms with restaurants, bars, meeting facilities and other services, although the precise offering varies by location and building.

For prospective franchisees, Sheraton represents a hotel ownership and operating proposition rather than a standardised small-business franchise. Its economics depend heavily on the property, local demand and operating structure. Owners gain access to Marriott’s distribution, reservation and loyalty infrastructure, while accepting brand standards that influence design, service delivery, technology and ongoing capital expenditure.

History and growth

Sheraton traces its origins to 1937, when Ernest Henderson and Robert Moore began building a hotel business in Massachusetts. The Sheraton name came from an early acquired property and became the identity of the wider group. In 1947, Sheraton became the first hotel chain listed on the New York Stock Exchange, reflecting the growing scale of branded hotel operations.

International expansion followed, beginning with hotels in Canada in 1949. The brand subsequently developed a presence across Europe, Latin America, the Middle East and Asia. Its entry into mainland China in 1985, through the Great Wall Sheraton Hotel in Beijing, was an important milestone in its international development.

Sheraton became part of Starwood Hotels & Resorts in 1998. Marriott acquired Starwood in 2016, bringing Sheraton into a much larger portfolio. Since the acquisition, Marriott has pursued a brand transformation centred on refreshed public spaces, contemporary guestrooms and a stronger role for the lobby as a place to meet, work and socialise.

Global footprint

As of 2024, Sheraton had around 430 hotels in more than 70 countries and territories. This places it among the more widely distributed full-service international hotel brands. Its network includes established North American properties, major European city hotels and a substantial presence in Asia-Pacific, alongside hotels in the Middle East, Africa and Latin America.

The estate is not uniform. A large convention hotel, an airport property and a resort may all carry the Sheraton name but face very different demand patterns and operating costs. Regional development opportunities also vary: some markets suit new construction, while others offer conversion opportunities for existing hotels. Headline network size therefore says less about an individual opportunity than its location, condition and competitive position.

How the franchise model works

Sheraton operates within Marriott’s predominantly asset-light business model. Many hotels are owned by third parties and run under either franchise or management agreements. These arrangements are distinct: a franchise allows an approved owner or operator to use the brand and associated systems, whereas a management agreement gives Marriott responsibility for operating the hotel under agreed contractual terms.

Under a franchise arrangement, the owner remains responsible for the property and for ensuring that its operation meets brand requirements. An approved third-party management company may run the hotel. Marriott provides access to brand systems, reservations, distribution, marketing and Marriott Bonvoy, its loyalty programme. Participation also entails contractual obligations and charges beyond the right to display the name.

Prospective owners should establish which structure Marriott is prepared to offer for their market and asset. Brand approval, operator approval and property approval are separate practical considerations. Neither ownership of a suitable building nor experience with another hotel brand automatically guarantees acceptance into the Sheraton network.

Investment and requirements

There is no single publicly disclosed worldwide Sheraton franchise fee or investment range applicable to every project. US franchise disclosure materials provide market-specific information, but a development budget still depends on room count, land and building costs, property condition, facilities and the proposed operating arrangement. Prospective franchisees should request the relevant franchise disclosure documents and current project requirements directly from Marriott.

For a conversion, the required property improvement plan can be a major component of expenditure. Guestrooms, bathrooms, public areas, restaurants, meeting spaces and building systems may all require work. A new-build project adds construction, professional fees, planning processes and the time needed to bring the hotel into operation.

Owners must also account for working capital, recruitment, training, technology and pre-opening activity. Continuing costs can include royalties, marketing and reservation charges, loyalty-related costs and periodic refurbishment. The applicable documents should establish how charges are calculated and what services they cover; figures from a different Marriott brand or another country are not reliable substitutes.

What franchisees should consider

A Sheraton hotel needs a credible demand base for its particular mix of rooms, food and beverage, and meetings space. Corporate travel, conferences, airline-related business and leisure stays may contribute differently throughout the year. Full-service facilities can diversify income, but they also introduce staffing, maintenance and operational complexity that a limited-service hotel may avoid.

The brand’s transformation programme makes the condition of an existing asset especially important. Owners should clarify which design and service requirements apply, the timetable for completing improvements and the potential disruption to trading. Other important questions concern the agreement’s duration, renewal and termination provisions, transfer conditions, territorial arrangements and the responsibilities of any external operator.

Competitive landscape

Sheraton competes with international full-service brands including Hilton’s DoubleTree, Hyatt Regency, Crowne Plaza and Radisson Blu. The closest rival depends on the market: conference capacity, resort facilities, room pricing and location can matter more than broad brand positioning. Within Marriott, brands such as Westin and Renaissance may also compete for similar guests and development opportunities.

Its competitive strengths include international recognition, Marriott Bonvoy participation and access to a large distribution network. These do not remove the need for local sales activity or disciplined operations. A recently renovated competitor with a better location can outperform an older branded property despite differences in global network scale.

Outlook

Sheraton’s direction remains closely tied to upgrading its existing estate and extending the refreshed brand concept. Conversions and new developments provide routes to growth, but maintaining consistency across a geographically diverse portfolio remains important. For prospective owners, the central question is whether Sheraton’s positioning and operating requirements fit the asset and market well enough to justify the associated capital commitment and continuing obligations.