Sheraton Hotels and Resorts
Harvard classmates Ernest Henderson and Robert Moore purchased the Continental Hotel in Cambridge, Massachusetts, during 1933. They combined Standard Investing Corporation and International Equities Corporation into Standard Equities Corporation by 1937. That same year, they acquired their second property, the Stonehaven Hotel in Springfield, Massachusetts. Sheraton dates its founding to 1937 and considers that property its first hotel. The chain received its name from a third hotel acquired in Boston during 1939. A large lighted sign on the roof read "Hotel Sheraton" and proved too expensive to remove. Henderson and Moore decided to call all of their hotels by that name instead. The original name likely referenced furniture designer Thomas Sheraton. By 1941, the pair had purchased Boston's famed Copley Plaza Hotel. They continued expanding rapidly along the East Coast from Maine to Florida. In 1946, Standard Equities Corporation merged with United States Realty and Improvement Corporation. This formed the Sheraton Corporation of America. It became the first hotel chain listed on the New York Stock Exchange in 1947.
Sheraton became the first hotel chain to centralize and computerize reservations when it introduced Reservatron in 1958. This system represented the industry's first automatic electronic reservations platform. The company unveiled Reservatron II in 1967 as a computer system for personalized bookings. Late 1969 marked another milestone when Sheraton introduced the hotel industry's first nationwide toll-free number. This single number displaced two hundred local reservation lines across the country. The radio jingle for "Eight-Oh-Oh, Three-Two-Five, Three-Five Three-Five" ran throughout the decade and into the eighties. That jingle's lifespan extended even beyond the 1980s. These technological shifts allowed the chain to manage properties more efficiently than competitors. Centralized systems enabled faster booking confirmations for travelers. The innovations set new standards for operational efficiency within the hospitality sector.
In 1949, Sheraton expanded internationally by buying the Ford Hotels chain with three properties in Toronto, Ottawa, and Montreal. They quickly resold the Toronto and Ottawa locations to finance continued Canadian expansion during 1950. The company paid $4.8 million to purchase Cardy Hotels, a chain of six properties in Ontario and Quebec. By 1959, Sheraton acquired its first properties outside North America. Four hotels owned by Matson Lines on Waikiki Beach in Honolulu became part of the portfolio. These included the Moana Hotel, Royal Hawaiian Hotel, SurfRider Hotel, and Princess Kaiulani Hotel. The early 1960s saw the arrival of the first Sheraton hotels outside the US and Canada. The Sheraton-Tel Aviv Hotel opened in Israel during March 1961. Two Caribbean properties followed in 1962: the Sheraton-Kingston Hotel in Jamaica and the Sheraton British Colonial in Nassau, Bahamas. In 1962, Sheraton created a franchise division primarily to operate Sheraton Motor Inns. These large highway motels provided free parking for guests. The company opened its first hotel in South America, the Macuto-Sheraton Hotel, outside Caracas, Venezuela, in 1963.
In 1968, the multinational conglomerate ITT Corporation purchased the chain and immediately sold eighteen aging Sheraton properties. Under ITT's ownership, Sheraton moved away from property ownership toward franchising and management models. This shift allowed the chain to expand greatly both in the US and abroad. On the 24th of October 1989, Sheraton was officially rebranded as ITT Sheraton. Starwood acquired ITT Sheraton for $13.3 billion in 1998, topping an offer by rival Hilton. Under Starwood's leadership, Sheraton began renovating many hotels and expanding the brand's footprint. Starwood also started marketing The Luxury Collection as a completely separate brand. Most properties previously named Sheraton have since been renamed. Only three such hotels remain today: Sheraton Addis in Addis Ababa, Ethiopia; Sheraton Grande Sukhumvit in Bangkok, Thailand; and Sheraton Kuwait in Kuwait City, Kuwait. In 2016, Marriott International purchased Starwood Hotels. The newly merged company again became the world's largest hotel and resort company.
On the 13th of January 1992, ITT Sheraton designated 28 premier hotels and 33 Sheraton Towers as the ITT Sheraton Luxury Collection. The flagship of this division was The St Regis in New York City. In April 1995, ITT Sheraton introduced Four Points by Sheraton to replace certain hotels designated as Sheraton Inns. This new mid-range brand targeted different market segments. In 1994, ITT Sheraton purchased a controlling interest in the Italian CIGA chain. The Compagnia Italiana Grandi Alberghi had begun operating hotels in Italy before over-expanding across Europe during a recession. Creditors seized most of these hotels from previous owner Aga Khan. The majority were placed in the ITT Sheraton Luxury Collection while some went into the Sheraton division. In 1999, Sheraton bought outstanding shares in CIGA for complete ownership. Starwood introduced the "Sheraton Grand" brand in 2015 for higher-end properties in urban or resort destinations. Marriott announced a new spinoff called Four Points Express by Sheraton in 2023 targeting the mid-range market in Europe, the Middle East, and Africa. Its first property opened in Nilüfer, Bursa, Turkey that fall. In 2024, the brand was renamed Four Points Flex by Sheraton.
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Common questions
When did Sheraton Hotels and Resorts officially start its operations?
Sheraton dates its founding to 1937 when Ernest Henderson and Robert Moore acquired the Stonehaven Hotel in Springfield, Massachusetts. The chain received its name from a third hotel acquired in Boston during 1939.
What year did Sheraton become the first hotel chain listed on the New York Stock Exchange?
The Sheraton Corporation of America became the first hotel chain listed on the New York Stock Exchange in 1947. This listing followed the merger of Standard Equities Corporation with United States Realty and Improvement Corporation in 1946.
How many properties did ITT Corporation purchase from Sheraton after acquiring the chain in 1968?
ITT Corporation purchased the Sheraton chain in 1968 and immediately sold eighteen aging Sheraton properties. Under ITT ownership, the company shifted focus toward franchising and management models instead of property ownership.
Which hotels remain today that were originally named Sheraton before Starwood rebranding efforts?
Only three hotels previously named Sheraton remain under that name: Sheraton Addis in Addis Ababa, Ethiopia; Sheraton Grande Sukhumvit in Bangkok, Thailand; and Sheraton Kuwait in Kuwait City, Kuwait. Most other properties have been renamed since Starwood acquired ITT Sheraton for $13.3 billion in 1998.
When was Four Points Flex by Sheraton officially renamed from its previous title?
Marriott announced a new spinoff called Four Points Express by Sheraton in 2023 targeting the mid-range market in Europe, the Middle East, and Africa. In 2024, the brand was renamed Four Points Flex by Sheraton.