LOS ANGELES-Creating a singular culture and an authentic experience is the key to expansion in the boutique hotel sector, according to the top executives panel at the Boutique Lifestyle Leadership Symposium, hosted by the Boutique Lifestyle and Lodging Association, on October 22. Moderated by John T. Peters, president of USA Today's Travel Media Group, the panel included executives from the top boutique hotel groups, including Brad Wilson, Ace Hotel Group president; Craig Greenberg, 21C Hotels president; David Duncan, Denihan Hospitality president; Michael Tall, Charlestowne Hotels president and COO; Richard Millard, Trust Hospitality CEO; and Sam Bakhshandehpour, SBE Entertainment/SLS Hotels president.
With projects in the pipeline for each of these groups, boutique hotels, which have built an industry rooted in oneness, find expansion can be difficult. “Really, the challenge is how to keep that uniqueness,” said Wilson of Ace Hotel Group. “[Each property] needs to feel like someone made it.”
For this reason, the speakers reject the idea of templates and instead work to create an authentic and unique experience at each property that draws on local culture and community. SBE's Bakhshandehpour explained the company uses the idea of guardrails rather than a template to incorporate “metrics that define a prospective brand,” thus creating a singular experience at each property while staying true to the parent brand's identity.
The concept is difficult to master, but once accomplished, these groups show that expansion is possible. Trust Hospitality, for example is opening 10 properties around the globe in the next 18 months. Likewise, Ace Hotel Group recently opened its first international property and has projects on four continents in the works. The success is due in part to a successful year for the boutique hospitality industry. Domestic occupancy is at 62.9% and ADR has risen two points since last year.
Last week, GlobeSt.com reported that the hotel sector of the hospitality industry was also reaching record heights since the recession, according to a JLL report. The resort industry this year accounted for 18.4% of the total hospitality industry investments.
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