Things are heating up at Starwood Hotels and Resorts $HOT, as the company is the subject of a $14B takeover bid by Chinese consortium Anbang Insurance Group Co., which may threaten a merger with rival Marriot $MAR. But with all the analyst conjecture over who ultimately will win Starwood’s hand, it seems no one is discussing the impact of the merger from a BRAND perspective, namely on the jewel in the tarnished crown at Starwood, the W Hotels concept.
One should be mindful that the “mating & dating” and ”beverage & food” versus “food & beverage” culture of The W Hotels brand may conflict directly with the core values-driven ethos of Marriot International Inc. The W Hotels brand is known as a dynamic series of 77 properties that use design, fashion and music as the core unique selling proposition. The properties are sexy: the bass is pumping, the cocktails are stiff, and the lighting makes everyone look like a supermodel. Well, almost. The tagline here should be “trysts optional.” Where the social mores of some W guests may appear loose to some—their allegiance to the Starwood Preferred Guest program—the company’s industry leading loyalty program—is fierce. Approximately 50% of all rooms booked at Starwood Hotels and Resorts are via SPG members, who are waiting with baited breath to see how their status will be impacted by a potential Marriot union.
Where the ‘devil you know’ aspect of this merger may seem like a better option with Marriot as the ultimate victor, this begs the question of sustaining a brand portfolio that has been virtually un replicable by competitors, especially when the cultures of its potentially new owner are in direct conflict with the DNA of one of its core brands. As this merger plays out in the coming weeks I will offer commentary on how best to maximize the brand value of Starwood.
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The post Bizarre Love Triangle: Starwood/ Marriot/ ANGBANG Bidding war: What does it mean for the W brand? appeared first on Kristin Bentz | The Talented Blonde.