Was in Muscat last week and drove past it - it's a wreck at the moment. Originally it was down to repoen in March, then it was September 1st 2010 and now they've removed completely the reopen date from the website.
To be fair, I stayed in the Al Bustan (Intercon) and Shangri La hotels which are just up the road and both were stunning hotels, I think Sheraton have realised they need more than just a minor facelift to get business back.