Core Insights - Sheraton is lowering prices to compete with mid-range hotels, with recent packages as low as 699 yuan for two nights, which is cheaper than local competitors like Atour [1][10] - The average room rate for Sheraton hotels in major cities has decreased by 8%, from 931 yuan to 857 yuan [8] - Sheraton's average price is now comparable to mid-range brands, raising questions about its brand positioning and consumer perception [9][10] Pricing Strategy - Recent promotions include a three-day, two-night package at Sheraton Zhongshan for 699 yuan, and rates starting at 487 yuan in Shunde and 449 yuan in Huizhou [1] - The average room rate for Sheraton in Shanghai is 734.7 yuan, while Atour's average is 713.5 yuan, indicating a significant shift in pricing strategy [9] Brand Perception - Consumers are confused about Sheraton's brand identity, questioning whether it is moving towards a lower-end market or struggling in the high-end segment [10] - There are complaints about outdated facilities and poor service quality at some Sheraton locations, leading to a decline in brand reputation [11][17] Financial Performance - Financial data reveals significant losses for some Sheraton properties, such as a net loss of over 20 million yuan for the Wenzhou Sheraton, indicating financial distress [14] - The brand's management struggles and rapid expansion have contributed to inconsistent service quality and operational challenges [18] Market Positioning - Sheraton's positioning has become awkward since being acquired by Marriott, struggling to find a place among luxury and mid-range brands [15] - The brand's transformation efforts have largely failed, with many owners unwilling to invest in renovations [15][19] Competitive Landscape - Sheraton is now competing directly with local brands like Atour and Crystal, which offer modern amenities at similar price points [19] - Marriott plans to open over 40 new high-end hotels in Greater China, indicating ongoing investment in the market despite Sheraton's challenges [19][20]