MIAMI—It's not your grandfather's luxury hotel market anymore. Times are changing—and changing fast.
GlobeSt.com caught up with Diego Lowenstein, CEO of Lionstone Development, to get his insights into how the definition of luxury in the hotel industry is evolving in part two of this exclusive interview. You can still read part one of this interview: What Today's Travelers Really Want From Hotel Stays. What you learn from this second generation hotel developer might surprise you.
GlobeSt.com: What changes are you seeing in the traditional luxury hotel sectors?
Lowenstein: The luxury hotel sector will continue to thrive. But the definition of what is considered luxury is rapidly evolving. As market demographics shift towards Millennials, hotel owners need to realize that this generation views “luxury” much differently than older generations. Today, luxury is about “unbuttoned elegance,” a more laid-back style that celebrates properties that deliver luxury—services, amenities, finishes and more importantly, experiences—in a comfortable atmosphere, which is a shift from the old European approach to luxury.
In our portfolio at Lionstone Development, for example, we have the Ritz-Carlton South Beach which really served as a catalyst for the Ritz-Carlton brand, ushering in the new generation of luxury. We are now in the midst of multimillion renovation that will includes rooms and new amenities so that we can stay ahead of changing guest expectations and demands.
GlobeSt.com: With hotel trends in mind, what's in your hotel development pipeline?
Lowenstein: The next few years will be very exciting for Lionstone Development as we are actively looking for new opportunities that align with our long-term vision. With more than 50 years of development in South Florida, we are also keen on continuing to grow in the region with several potential conversion opportunities. As always, we are selective and meticulous when it comes to finding the right locations at the right time. We're also looking to increase our footprint in the southern Caribbean by assisting as developers with a large-scale development of multiple hotel sites, which we should be announcing shortly.
At this time, we are also more involved as a family in development endeavors overseas, with a focus on Italy. My family's development company there, Marzocco Development—separate from Lionstone Development—is currently converting several historic properties in Tuscany and Florence into luxury hotels, including legacy assets that are 400-500 and even 1,000 years old.
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