{"id":2269,"date":"2016-05-24T14:23:39","date_gmt":"2016-05-24T18:23:39","guid":{"rendered":"https:\/\/www.bu.edu\/bhr\/?p=2269"},"modified":"2020-01-13T09:53:21","modified_gmt":"2020-01-13T14:53:21","slug":"capturing-media-and-customer-attention-before-the-digital-age-case-study-sheraton-new-york-towers-and-the-1993-democratic-national-convention-rebranding-strategy","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/bhr\/2016\/05\/24\/capturing-media-and-customer-attention-before-the-digital-age-case-study-sheraton-new-york-towers-and-the-1993-democratic-national-convention-rebranding-strategy\/","title":{"rendered":"Rebranding Before the Digital Age: 4 Strategies Used by the Sheraton New York Hotel and Towers During the 1992 Democratic National Convention"},"content":{"rendered":"

By Leora Halpern Lanz, Juan Lesmes, & Erinn Tucker<\/span><\/p>\n

When a New York City tourist arrives at Times Square, the territory from 40th street to 53rd between 6th and 8th avenues, they become one of the other 330,000+ monthly visitors (Times Square Alliance) of the city\u2019s most popular destination. The pedestrian-only square is consumed by upscale hotels, themed restaurants owned by celebrity chefs, the iconic TKTS booth selling tickets to the 40 Broadway theaters, an array of usual and unusual street performers, and towering neon lights flashing varying content like celebrity news, stock prices, and McDonald\u2019s ads.<\/span><\/p>\n

In the early 1990s, Times Square and New York City was not the ideal tourist destination that it is today. A fiscal crisis in 1975 was followed by power outages, increased drug usage and crime, and a declining population. By 1990, the city experienced peak homicides of 2,245 in one year. In 1993, Times Square alone reported close to 4,000 crime incidents. While the streets were lined with flashing lights and signs, these risqu\u00e9 attractions, however, were not for the tourists and their families that the area caters to today.<\/span><\/p>\n

In 1992, New York City Mayor Rudolph \u201cRudy\u201d Giuliani and the Times Square Alliance made drastic efforts towards the revitalization of the city, combating both poverty and crime. The hospitality industry had much to contribute to these efforts by building new luxury properties, and revitalizing existing New York properties like the Sheraton Centre Hotel. This hotel in particular was not only part of the city\u2019s drastic efforts to turn out its safety and public image, but it simultaneously leveraged its connection to the 1992 Democratic National Convention to lift its own rebrand.<\/span><\/p>\n

Today, the 38,960,000 annual Times Square visitors account for $4.5 billion in food, retail, and entertainment spending. The downtown destination also provides 385,000 jobs, and fewer than 800 instances of crime occur every year.<\/span><\/p>\n

\"Hotel<\/a><\/h3>\n


The Sheraton Ready for a Rebrand<\/span><\/h4>\n

In 1990, the 7th Avenue Sheraton Centre Hotel in Manhattan was a tired property in need of rejuvenation. Owned by International Telephone and Telegraph (ITT), the property experienced high occupancy rates and was the leading revenue generator for Sheraton. However, Fodor\u2019s and Frommer\u2019s guide books validated the guest point of view: it was an outdated hotel where guests only stayed if deemed absolutely necessary due to its central location and affordable rates. The guests\u2019 perceptions and negative public stigma were indicative of many of the United States Sheraton hotel properties, which included a mixed collection of large city hotels, suburban properties and highway locations.\u00a0 The company instituted a strategic plan focused on renovating existing properties throughout the U.S. and Canada in order to remain competitive in the market.<\/span><\/p>\n

Between 1990 and 1992, ITT spent $1 billion on capital and renovation efforts in order to elevate hotel quality in North America. Sheraton re-positioned their television and marketing messages, announcing, \u201cWe\u2019re spending a billion to make you feel like a million.\u201d <\/em>ITT allocated 10%, or $100 million, of renovations to its three New York City properties: Sheraton Centre, Sheraton Squire, and Sheraton Park Avenue (respectively renamed Sheraton New York Hotel & Towers, Sheraton Manhattan, and Sheraton Russell). In 1992, the Sheraton Centre and City Squire properties collectively totaled 2,400 rooms. The Sheraton renovations and rebranding concurrently aligned with the rejuvenation of Manhattan\u2019s Midtown West and tourist-driven 42nd<\/sup> Street. This made for an additional opportunity that the Sheraton Centre\u2019s public relations department incorporated into its property\u2019s strategy.<\/span><\/p>\n

The Sheraton Centre and the Democratic National Convention <\/strong><\/span><\/h4>\n

The 1992 Democratic National Convention was set to take place in New York City from July 13th-15th. The 1,650 room Sheraton Centre and its primary competitor, the New York Hilton located two blocks away, served as the official hotels of the DNC. The Sheraton Centre publicly capitalized on its DNC connection to help lift its rebrand and renovation messaging. For example, public relations and advertising stated, \u201cThe hotel was spending $100 million to renovate and become the new Sheraton New York Hotel & Towers; and we are completing the renovation in time to serve as the headquarters for the Democratic National Convention.\u201d<\/em> The renovation and DNC connected messaging was further shared with stakeholders, potential guests, and business bookers during the period leading up to the convention.<\/span><\/p>\n

From Internal Customer to External Customer<\/strong><\/span><\/h4>\n

Develop an Internal Narrative for Employees<\/strong><\/span><\/em><\/p>\n

It is important to use a common message to communicate renovation updates to all employees. It was most important for front-of-house employees like bellman and front-desk agents who frequently come in contact with guests; it was also important for back-of-house employees working behind-the-scenes like engineers and sales staff to be familiar with the changes. When employees were knowledgeable and up to date, the internal word-of-mouth assisted in telling the rebranding story.<\/span><\/p>\n

Without the widespread use of internet and corporate intranets, the public relations and human resources departments developed an internal television channel called the Sheraton Employee News Network (SENN); the station delivered a weekly update on the renovations occurring at both the Sheraton Centre and Squire properties. \u201cRenovation Updates\u201d, a printed periodic internal newsletter also included renovation, rebranding, and DNC updates. Eventually, as the comfort with internet and email grew, department heads sent the newsletters electronically to their respective staff and departments.<\/span><\/p>\n\n\n\n
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Pre-Convention Public Relations Moments<\/span><\/strong><\/h5>\n

Beginning in February 1992, monthly communication tactics were planned for both properties,\u00a0\u00a0\u00a0 some already leveraging the DNC connection.\u00a0<\/span><\/span><\/p>\n

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