Congratulations on the launch of Starwood’s 10th brand and second collection of independent hotels. The ad campaign suggests that the Tribute Portfolio is targeted at discerning guests who want to try something different but still stay in the Starwood family. Could you elaborate on the thought process behind it?
Thanks so much. We created Tribute Portfolio to allow both our Starwood Preferred Guest (SPG) members and owners/developers to “Stay Independent”. Our guests want access to more independent hotels in great places where they can feel the benefits of our award-winning SPG programme. Also, the owner/developer community would love access to Starwood’s powerful distribution, loyalty and sales platforms, while still maintaining their independent spirit.
According to a survey of SPG members conducted by Communispace in the SPG Advisory Community, 89% said they are interested in staying in independent hotels. Nearly 70% said they have already stayed at an unbranded hotel property. Looking back, when did Starwood realise there was a gap in the market?
We’ve known for some years that our members sometimes want a non-branded experience.That is why we created The Luxury Collection 20 years ago. Starwood has meticulously handpicked five-star hotels to feature in this brand. We will just as carefully select independent upper upscale properties for Tribute Portfolio.
We have a pulse on where our members would like to see our footprint expand, and we know they want to “Stay Independent”, as is evident from the survey results you mention. Online review websites and online travel agents have helped independent hotels gain recognition and have given travellers the confidence to try something new.
What was your personal contribution in the creation of this brand?
Launching this brand has been a really exciting time. I’ve had conversations with many owners and members to discuss the potential of Tribute Portfolio. I’ve also led the charge in creating this brand with Starwood’s internal stakeholders. Tribute Portfolio represents a real opportunity to make a statement impact for our members, guests and owners, and I will lead the brand’s vision as we continue to grow.
Given Starwood’s history of brand innovation, what can SPG guests expect from the new brand?
We are building a brand that is driven by storytelling around our individual properties, and that makes our strategy a bit different than that of our other nine brands. Tribute Portfolio will be an outstanding group of independent hotels whose commonality is that they will deliver uncommon experiences, while providing the Starwood seal of approval our guests and owners expect. We launched with a digital initiative, #OurLikes, which highlights the extraordinary independent moments that can be found at Tribute Portfolio hotels.
Marriott International launched Autograph Collection five years ago with 56 hotels open and Hilton Worldwide rolled out Curio last year with nine properties. How does the Tribute Portfolio compare with these two brands in particular?
Our owners are the heroes within Tribute Portfolio. They tell us that they see great value in partnering with Starwood as they get access to our high-end base of SPG members, as well as our Starwood Sales customers and distribution channels. Having worked with our other brands, they know our guests and customers love to experience high quality hotels in sought after destinations. Many of our competitors claim their brands are dedicated to the upper upscale category, but there’s a sliding scale on the quality of those properties. We are committed to including only four-star upper upscale hotels in Tribute Portfolio, and not blurring lines across categories.
Tribute Portfolio will also help owners deliver better returns. We offer a highly competitive bundled programme fee that covers certain expenses for marketing, reservations, sales revenue management and technology. Our brand standards are minimal, and our operational standards will be focused on ensuring quality, safety/security, connectivity to Starwood systems and delivering on our promise to SPG members.
With the new brand, how much say will the owners have over key decision-making processes regarding the running of their property? Does the launch of a “soft” brand like The Tribute Portfolio signify a shift in direction?
We are brand leaders. We know that brands still matter to SPG members, but we also know that sometimes, particularly for leisure travel and special occasion trips, our guests are looking for a different experience. The purpose of having a brand like Tribute Portfolio is that you really shouldn’t feel a Starwood presence within these hotels. When you walk through Royal Palm South Beach Miami, you will know you are in an independent hotel. The other piece here is our due diligence around which hotels we will bring into the brand. We make sure that these properties have the right setup in place to deliver great service that our guests and members have come to expect from Starwood.
What you will feel from Starwood is our standards of quality and safety, and our SPG presence. As with Starwood’s other nine brands, guests will be able to earn and redeem points at Tribute Portfolio hotels, and enjoy in-hotel tier benefits such as upgrades, welcome amenities, late check-out and more.
Do you foresee owning some of these “great hotels in great destinations” in the future or would Starwood simply stick to managing them?
Starwood always looks at opportunities in the hotel space. We created Tribute Portfolio to expand our footprint and to work with owners who are already creating and delivering experiences that our guests crave in places where they love to go.
The Tribute Portfolio has made its debut with the iconic Royal Palm South Beach Miami and, moving forward, Starwood expects 100 Tribute Portfolio hotels by 2020. Where does India feature as far as this new brand is concerned?
For Starwood, the region is a huge growth opportunity, and we want to bring our SPG members and guests properties in desirable destinations. For that reason, we will work to bring Tribute Portfolio to India and the rest of the region.
Do you see opportunity to grow the Tribute Portfolio in India and tie up with independent Indian hotels?
We are having conversations with a number of owners across the globe about expansion of Tribute Portfolio.
Focusing on upper upscale hotels, Tribute Portfolio aims to complement Starwood’s The Luxury Collection brand. How will the 11 ITC hotels that are part of the Luxury Collection in India stand to benefit from the new brand?
Tribute Portfolio will complement Starwood’s The Luxury Collection brand. As our SPG members now have more opportunity to earn SPG points, they will also have more opportunities to redeem these points and explore new destinations at other Starwood Hotels & Resorts properties across all brands.
According to a report, the world’s 10 largest hotel groups offer 114 brands to the guests. Do you think it’s increasingly difficult for consumers to make brand distinctions?
Over the past ten years, more than 30 “lifestyle” hotel brands have been launched, creating a sea of sameness for the consumers.
We believe that there are great independent hotels out there in great places, and we do not need to create a new brand in order for our SPG members and guests to take advantage of them. The Tribute Portfolio hotels we launched within the US are a great example of this, and we’ll look to adding hotels to Tribute Portfolio.
