AIRPORTMARKETINGNEWS

SPG Annual Changes Affect Airport Hotel Redemptions

Element Frankfurt Airport (SPG)

Starwood Preferred Guest (SPG) evaluates hotels and makes decision on what their redemption category would be annually. In 2016, there are 282 changes overall with 26 of them affecting hotels near airports worldwide.

SPG

SPG is the frequent user program for the Starwood Hotels & Resorts Worldwide, Inc. Travellers who enroll to this program can earn, redeem and enjoy benefits at more than 1,200 hotels and resorts across eleven distinctive brands — including St. Regis®, W® and Westin® — in nearly 100 countries. The hotel chain was purchased by Marriott International (Insight).

Starwood Preferred Guest (SPG) Brands
Starwood Preferred Guest (SPG) Brands

Category Changes

Like its competitors, SPG uses a set of metrics including overall hotel loads, pricing, competition, redemption rates, time of check in, and local events, etc to determine how a hotel would fit into its seven category system. Each room in the category has its own Starpoints® requirement:

Weekday Redemption

SPG Redemption Rates
SPG Redemption Rates

Weekend Redemption

SPG Redemption Rates
SPG Redemption Rates

The program offers additional ways to redeem rooms with options such as cash and points by category and redeem fifth night free.

Airport Hotel Changes

There are 13 airport hotels moving down a category in 2016. Here is a list:

REGIONPROPERTYCOUNTRYSTATE/PROVINCECITYBRAND2015 CATEGORY2016 CATEGORY
Asia PacificFour Points by Sheraton New Delhi, Airport HighwayIndiaNew DelhiNew DelhiFour Points21
EuropeSheraton Baku AirportAzerbaijanBakuSheraton43
EuropeElement Frankfurt AirportGermanyFrankfurtElement43
EuropeSheraton Moscow Sheremetyevo Airport HotelRussian FederationMoscowSheraton32
Latin AmericaAloft Bogota AirportColombiaBogotaAloft21
North AmericaFour Points by Sheraton Edmonton International AirportCanadaAlbertaNiskuFour Points32
North AmericaFour Points by Sheraton Winnipeg International AirportCanadaManitobaWinnipegFour Points43
North AmericaThe Westin Bristol Place Toronto AirportCanadaOntarioTorontoWestin32
North AmericaSheraton Baltimore Washington Airport Hotel - BWIUnited StatesMarylandLinthicum HeightsSheraton43
North AmericaThe Westin Baltimore Washington Airport - BWIUnited StatesMarylandLinthicum HeightsWestin43
North AmericaSheraton Albuquerque Airport HotelUnited StatesNew MexicoAlbuquerqueSheraton32
North AmericaAloft Charleston Airport & Convention CenterUnited StatesSouth CarolinaNorth CharlestonAloft32
North AmericaFour Points by Sheraton Houston Hobby AirportUnited StatesTexasHoustonFour Points32
Sheraton Amsterdam Airport Hotel Exterior Building
Sheraton Amsterdam Airport Hotel Exterior Building
Source: SPG

There are 13 airport hotels moving up a category in 2016. Here is a list:

REGIONPROPERTYCOUNTRYSTATE/PROVINCECITYBRAND2015 CATEGORY2016 CATEGORY
EuropeSheraton Amsterdam Airport Hotel and Conference CenterNetherlandsAmsterdamSheraton45
North AmericaSheraton Vancouver Airport HotelCanadaBritish ColumbiaRichmondSheraton23
North AmericaFour Points by Sheraton at Phoenix Mesa Gateway AirportUnited StatesArizonaMesaFour Points23
North AmericaAloft Phoenix-AirportUnited StatesArizonaPhoenixAloft23
North AmericaSheraton Phoenix Airport Hotel TempeUnited StatesArizonaTempeSheraton23
North AmericaFour Points by Sheraton Los Angeles International AirportUnited StatesCaliforniaLos AngelesFour Points34
North AmericaThe Westin Los Angeles AirportUnited StatesCaliforniaLos AngelesWestin45
North AmericaAloft San Francisco AirportUnited StatesCaliforniaMillbraeAloft45
North AmericaFour Points by Sheraton San Jose AirportUnited StatesCaliforniaSan JoseFour Points34
North AmericaSheraton Chicago O'Hare Airport HotelUnited StatesIllinoisRosemontSheraton34
North AmericaSheraton Cleveland Airport HotelUnited StatesOhioClevelandSheraton23
North AmericaAloft Portland Airport at Cascade StationUnited StatesOregonPortlandAloft34
North AmericaFour Points by Sheraton Richmond AirportUnited StatesVirginiaRichmondFour Points12
Lobby Four Points by Sheraton Winnpeg International Airport
Lobby Four Points by Sheraton Winnpeg International Airport
Source: Starwood

Analysis

The last time to redeem for the hotels moving up a category is March 1, 2016.

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All the hotels noted above are within category 1 to 5 and are not directly attached to the airport. The following table analyzes the absolute Starpoint and percentrage difference for each category upward:

CATEGORY (ORIGINAL) STARPOINTS CATEGORY (NEW)  STARPOINTS DIFFERENCE (STARPOINTS/ PERCENTAGE)
1 2,000 (Weekend) – 3000 (Weekday) 2 3,000 (Weekend) – 4000 (Weekday) 1,000-2,000 (33-50%)
2 3,000 (Weekend) – 4000 (Weekday) 3  7,000 3,000-4,000 (175-233%)
3 7,000 4  10,000 3,000 (30%)
4 10,000 5 12,000 (Low) – 16,000 (High) 2,000-6,000 (20%-60%)

The greatest increase in percentage terms is for hotels that are moving from category 2 to 3  where redemption requirement could go up 233%. Category 4 to 5 also can contribute to a 6,000 Starpoints increase per night.

Airport hotels have been known for its convenience on catching flights than decor previously. Hotel chains are planning to change this perception as airports are transforming themselves into a tourist destination. For example, Singapore’s Changi Airport had a Star Wars exhibit that included two lifesize Starfighters (News – Changi Airport / Star Wars).

London’s Heathrow Airport will add two new properties with access to Terminal 4 by early 2018. These two hotels will cater to a wide spectrum of price and have newer modern designs used at city locations (News – Heathrow Airport Terminal 4 properties).

Holiday Inn Express; Crowne Plaza
London Heathrow Airport Terminal 4 adds new hotels from InterContinental Hotel Group

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