NEW YORK CITY—The continued growth of Tribute Portfolio, Starwood Hotels & Resorts Worldwide’s collection of independent hotel properties, will not be slowed by the pending acquisition of Starwood by Marriott International, according to Dave Marr, global brand leader.
“Marriott will keep all its brands once the acquisition is complete,” Marr said. “When you have 30 brands you have to have clear delineation among them. Both Marriott and Starwood recognize the upside potential of the independent luxury space with more than 20,000 hotels in that category, including a majority outside of the U.S.
“To have both Tribute and Autograph as part of Marriott gives you more opportunities just as is the case of Starwood having multiple upscale brands like Westin, Le Meridien and Sheraton.”
Marr said that the process of differentiation can’t really get underway until the Marriott/Starwood transaction is complete. At that point, he said, “we will move on to creating different swim lanes for the brands.” Shareholders from both hotel companies approved the deal on 8 April, and it is expected to close in July.
Despite all the distractions involved with the pending merger, Marr said Tribute has “continued in our growth. We have been told frequently, ‘You had a lot of excuses to shut down, but you didn’t.’”
The soft brand celebrated its first anniversary by signing three new hotels (in Tampa and Sarasota, Florida; and Shanghai, China) for a total of 20. Marr said the collection will have 35 hotels by the end of this year with its first new-build members coming on stream in 2017.
Tribute’s growth as far as location and approach has been based on input from members of Starwood Preferred Guest, the company’s loyalty program, Marr said. What will that mean should Starwood merge with Marriott?
The integration of Starwood Preferred Guest with Marriott Rewards “is incredibly complex, and we want members to get the best of both worlds,” Marr said. “That will probably take all of 2017 to complete, and at that point Tribute’s growth will continue to be determined by loyalty members.”
Meanwhile, Marr said Tribute will continue its mission of appealing to “independent-minded” owners, including owners of other Starwood brands or owners who have relationships with Starwood’s development team based on contacts over the years.
Tribute has three new builds underway, including one in Denver. (Rendering: Tribute Portfolio)
“Finding the right independent hotel in the right location depends on where SPG members want us to be,” Marr said. “If we get a lot of requests for ski resorts, we will look at Switzerland but not just any place or hotel in Switzerland. I have so far been to all of our hotels and have gotten to know their owners because we need the right hotels.
“And we have to be careful in who we choose, because the first thing an owner has to consider is: What are the other hotels in the collection?” he said.
Marr said that in some cases Tribute reaches out to an owner, and in others it is the owner who initiates the relationship. In either case, Marr said owners are told two main things.
“One is that we have a very affluent loyalty membership, travelers who are used to staying at brands like Luxury Collection and St. Regis. And second, we tell them that we can make their hotels even better using our own resources,” he said.
“We are open to collaboration with the hotel,” Marr continued. “We tell them that we recognize that they have a vision but that we might be able to work with them to make it better. Whether we have a historic building or a new build, we have to have a narrative for it, and we might be able to help them tell their stories.”
Tribute has three new builds underway—in Fort Lauderdale, Florida; Denver and Savannah, Georgia.
Marr said there will be extensive international and domestic growth in the near future. So far, about 70% of properties are urban and the rest resorts, but Marr said that could change depending on opportunities. He said there is a lot of activity in Latin America and Mexico but also in Asia and elsewhere.
“In a year from now what would make me most proud is that we are a truly global group,” Marr said.