The problem with chains branding boutique

The problem with chains branding boutique
26 AUGUST 2015 6:12 AM
Chains that brand boutique and lifestyle will face challenges to truly distinguish themselves, remain relevant and set themselves apart.
By Becka Chester
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although the number of projects under construction is not quite up to what is was in mid-2008,
there has been a strong, steady resurgence. In the past 24 months, ush with an infusion of fresh
there has been a strong, steady resurgence. In the past 24 months, flush with an infusion of fresh
dollars, the hotel marketplace has run rampant with an abundance of new brands, the majority of
dollars, the hotel marketplace has run rampant with an abundance of new brands, the majority of
which are vying for the millennial market.
which are vying for the millennial market.
These brands are the products of the larger veterans of hospitality—Marriott, Hilton, Hyatt, Shangri-La, Radisson and Loews—and many have “millennially-appealing” catchy names, such as Canopy, Tribute, Moxy and Jen. Other big hotel corporations have quickly tapped into this market either by buying an existing brand outright (e.g. InterContinental Hotels Group’s purchase of the already-proven Kimpton Brand) or by creating collectives of soft brands, whose leniency with brand standards allows for well-established, independent properties to become part of the big- name hotel chain with minimal change.
Boutique and lifestyle brands have long been the inspirational muses of the hotel industry. Schrager’s concept of “lobby-as-social-space” has had a signi cant design impact on numerous brands, from the limited-service franchise product up to the full-service 4- and 5-star brands. When Barry Sternlicht, then of Starwood Hotels & Resorts Worldwide, introduced an all-white bed for its newly launched W brand as well as its Westin properties, bedspreads disappeared once consumers and the big hotel companies embraced the minimal concept by creating their own interpretations of the idea. Today around the globe, one would be hard-pressed to nd a heavily patterned, quilted bedspread in any property.
These brands are the products of the larger veterans of hospitality
The W brand was the rst instance of a large hotel company
—Marriott, Hilton, Hyatt, Shangri-La, Radisson and Loews—and
attempting to completely emulate the look, feel and
many have “millennially-appealing” catchy names, such as
personality of an independent lifestyle hotel. Starwood
Canopy, Tribute, Moxy and Jen. Other big hotel corporations have
launched W way back in 1998 and since then has seen it
quickly tapped into this market either by buying an existing brand
successfully grow to more than 50 properties in 24 countries.
outright (e.g. InterContinental Hotels Group’s purchase of the already-proven Kimpton Brand) or by creating collectives of soft
In 2004, IHG introduced the Indigo brand, developed
brands, whose leniency with brand standards allows for well-
primarily for property conversions on an economical scale;
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npaipmeelinheo.teInl c2h0a0i5n, wStiathrwmoiondimdaelvcehloapnegde.yet another lifestyle
brand, Aloft, which targeted the business traveler. Hyatt
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aborted launch of the Denizen Brand in 2009), no other large
social-space” has had a significant design impact on numerous
hotel chains really ventured into this market.
brands, from the limited-service franchise product up to the full- service 4- and 5-star brands. When Barry Sternlicht, then of
A lifestyle brand often has as its cornerstone a certain
Starwood Hotels & Resorts Worldwide, introduced an all-white bed
design “edginess,” with a speci c appeal for a younger
for its newly launched W brand as well as its Westin properties,
contemporary culture. Did the big hotel rms have a
bedspreads disappeared once consumers and the big hotel
hesitation that there was (and is there still) a consumer
companies embraced the minimal concept by creating their own
perception that they were perhaps too mainstream and staid
interpretations of the idea. Today around the globe, one would be hard-pressed to find a heavily
to be successfully af liated with edginess?
patterned, quilted bedspread in any property.
Were they concerned that the words “hotel chain” and “boutique and lifestyle hotels” were an
The W brand was the first instance of a large hotel company attempting to completely emulate
oxymoron? Any reluctance they had with leaping into this segment is now gone. The hotel titans
the look, feel and personality of an independent lifestyle hotel. Starwood launched W way back in now rmly believe this is truly the next big market and all are scrambling to get a piece of it. 1998 and since then has seen it successfully grow to more than 50 properties in 24 countries.
Issues for chains
In 2004, IHG introduced the Indigo brand, developed primarily for property conversions on an One of the issues the hotel companies will face as they roll out their new brands will be a
economical scale; it has been successful with 61 hotels, with another 63 in the pipeline. In 2005,
tendency to con ne and de ne their target-market too narrowly. Given that boomers and Gen
Starwood developed yet another lifestyle brand, Aloft, which targeted the business
Xers still have the most dollars to spend on hotel stays, it is crucial that the new brands don’t
traveler. Hyatt jumped into the ring in 2007 with its Andaz brand. Until this recent economic alienate them by attempting to be too millennial focused.
upturn, however, (other than Hilton’s aborted launch of the Denizen Brand in 2009), no other large hotel chains really ventured into this market.
The successful independent boutique and lifestyle hotels have always been the brainchildren
of independent thinkers, such as Schrager and Sternlicht. With the hotel corporations already
A lifestyle brand often has as its cornerstone a certain design “edginess,” with a specific appeal
managing their existing stables with a multitude of brands, they will need to ensure they have faopr asysoiounageter cleoandtemr aptotrhaeryhceulmltuoref .thDeidirthnewbigbrhaontdelifniromrdsehrafvoer aithteosgiteattitohne tahtatetnthtieorne twoadse(saingdn idsiftfheerreensttiailtli)oanctohnastuhmisetropreicrcaellpytihoanstsheat ltihfesytywlerberpaenrdhsapaspatorot. mainstream and staid to be successfully affiliated with edginess?
The biggest challenge will be managing the design process.
Were they concerned that the words “hotel chain” and “boutique and lifestyle hotels” were an
The independent hoteliers knew how to tap into the locale and mindset of their market. Each
oxymoron? Any reluctance they had with leaping into this segment is now gone. The hotel titans
hotel had its own quirkiness, character and offered the guest a special experience.
now firmly believe this is truly the next big market and all are scrambling to get a piece of it.
When a hotel chain creates a brand, developers are handed a manual of design and construction
Issues for chains
standards. Variances from these standards are not readily granted, as homogeneity is less costly
One of the issues the hotel companies will face as they roll out their new brands will be a
and easier to manage. How will they create an appealing hotel with innovative design while
tendency to confine and define their target-market too narrowly. Given that boomers and Gen
trying to stay within the constraints of the given design and construction standards? How will
Xers still have the most dollars to spend on hotel stays, it is crucial that the new brands don’t
a corporate hotel culture manage the design process and nurture an entrepreneurial spirit that
alienate them by attempting to be too millennial focused.
has always been at the heart of lifestyle? Will they allow enough leniencies and encourage their designers with innovation, or will the big business spirit and mentality quash any new ideas? It will be a ne line to walk.
always been at the heart of lifestyle? Will they allow enough leniencies and encourage their
designers with innovation, or will the big business spirit and mentality quash any new ideas? It will be a fine line to walk.
Looking ahead, the market probably will not be able to sustain all of these new brands. How will
Looking ahead, the market probably will not be able to sustain all of these new brands. How will
developers choose between this ever-growing menu? More importantly, how will the hotel guest
developers choose between this ever-growing menu? More importantly, how will the hotel guest
choose between them?
choose between them?
It will be a challenge for these brands to truly distinguish themselves, remain relevant and set
It will be a challenge for these brands to truly distinguish themselves, remain relevant and set
themselves apart.
themselves apart.
Becka Chester, ISHC is a 30-year veteran in the hospitality design industry and former Vice President of Interior Design with Hilton Hotels Corporation. Her consultancy, Hospitality Design Specialist, LLC offers a design management service by providing hotel owners with the complete services of an in-house design executive. By offering these skills on a project-to-project basis, she fills a principal position that is usually available only to the largest hotel firms.
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