Starwood Loses Sheraton Karachi – Becomes Mövenpick

by John Ollila on September 8, 2013

LoyaltyLobby reader sent me a link to a newspaper article about reflagging of Sheraton Karachi to Mövenpick hotel. You can access the entire article that appeared on the Express Tribune here.

sheraton-karachi-reflag-movenpick

I wouldn’t usually write reflagging of a Sheraton hotel, but there are few quite interesting tidbits in this instance.

sheraton-karachi-reflag-movenpick-article

If you are trying to search for hotels in Karachi using any of the OTA’s, there are only four hits of which two are internationally recognizable brands; Sheraton and Marriott.

Now, the owner of the Sheraton doesn’t see the benefit of paying expensive royalty fees for carrying the brand, when the room rates are down and most of the customers local. The international visitors are currently only 5% of the guests. The number of international guests is down to worsening security situation and lower FDI (foreign direct investment).

Western hotels are also seen a target for terrorists and bomb had gone off quite close to the Sheraton hotel in the past.

Conclusion

Operating a foreign affiliated hotel in Karachi must be a challenge from the customer and security perspective. Paying those high Starwood franchise and SPG participating fees must be annoying as well.

Pakistan has been on my list of countries to visit, as my long term goal is to visit them all, but haven’t made it there yet due to visa requirement.

I have been to some Marriott affiliated hotels in Indonesia that have been targets of successful terrorist attacks and are still operating.

Remember to sign up for our free blog updates by email, like us on Facebook and follow us on Twitter. This way you don’t miss out on any valuable information about hotel and airline bonus opportunities, promotions, status matches and program updates.

If you enjoyed this article, get blog email updates... for free!

Email Address:

  • DrSavant

    Interestingly enough, even back in 2010 they won’t give me my SPG points, saying that although they were Sheraton, they are not a participating property…

    • http://loyaltylobby.com/ John O.

      There are still some Starwood properties that don’t participate to SPG. It could be that this Sheraton was under very old franchise agreement that did’t require SPG participating that costs the hotel 5% of the room revenue.

      • DrSavant

        It’s all an annoying game – IHG is not much better – they recently denied me any points whatsoever on a stay at Moscow’s main Intercont, because I had a “discount” rate…

        • http://loyaltylobby.com/ John O.

          How much was the rate compared to the BAR and was it company specific?

          • DrSavant

            No idea :) It was booked for me, however I know the rate wasn’t company specific, as we don’t have any arrangements with anything in the SPG realm…

Previous post:

Next post: