SPECIAL REPORT

W by - Chicago City Center

By Michael Andre Adams

Independent Nylo Hotel - Plano Texas

business.” But in an industry where it’s the norm to be different, who cares what Webster’s has to say? Enter the Boutique Thinking & Lifestyle Lodging Association (BLLA). In January, under the direction of its founder and chair, Frances Kiradjian, Boutique properties are linking together, BLLA released a white paper defining a boutique hotel as being either an inde - but are the links turning into chains? pendent property or part of a small brand or collection. Ask a handful of hospitality profes - agement deal or ownership. “It doesn’t “Per the more official description of sionals to define ‘boutique hotel,’ and necessarily have any implications in terms boutique , garnered from worldwide what you’re likely to get are a variety of of branding or guest experience,” he says. industry research we initiated, boutique opinions that indicate an interesting – and “However, a boutique hotel can also be hotels are described as personalized, cus - evolving – new segment in the industry. independent, or vice versa.” tomized, unique and individual,” Kiradjian “The question has been swirling “You would call yourself a boutique explains. “The most important defining around at a variety of conferences and hotel if you were smaller and did not fit features of boutique hotels are cultural and meetings,” says Kip Vreeland, vice presi - into the general mold of a typical full serv - historical authenticity and that it provides dent of Marriott’s , ice hotel,” says Luigi Di Ciaccio, a princi - interesting, unique services. Other impor - “and every leader, executive, customer has pal at Luxury Hospitality Consulting. tant defining descriptors of boutique hotels their own definition.” “However, if being different is the first include social spaces such as living rooms,

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1 “It’s a relatively new term, which usu - step, then personalized service is generally libraries with social rooms and many high- 0 2

ally draws to mind high design and a believed as one of the main characteristics quality in-room features.” Y

R lifestyle component, whether it be food of a boutique hotel.” By contrast, Kiradjian’s definition of A

U and beverage, nightlife, fashion or “Today, it has little to do with the an independent property is “a single prop - R B

E beyond,” says Philip Dailey, general man - size of the property; the term applies more erty with no ownership affiliation with F

ager of ’s Andaz West Hollywood. to the hotel design and guest experience,” ‘other’ hotel properties,” but with a nod e v i

t “As we know, the boutique hotel exploded explains Stacy Ragland, vice president of to current industry realities, it may include u c

e into the mainstream in the 90s, much to operations for Choice Hotel’s Ascend “more than one property as long as it x E

l the credit of hoteliers like .” Collection. doesn't belong to a bigger group.” e v

a An independent hotel is simply a Regardless of who’s doing the defin - r T property that operates as an individual Boutique By The Book ing, the boutique-mania certainly owes a s s

e entity, Dailey explains, with no ties to big Webster’s Dictionary defines boutiques as debt of gratitude to founding father Ian n i s

u hotel corporations, either through a man - “a small fashionable specialty shop or Schrager, who rose to fame as one of the B

32 Andaz Hotel by Hyatt - West Hollywood, CA

Future Home of Edition by Marriott - City masterminds behind New York’s legendary who claimed the property was losing tions and experiences, and there are sub - . money because of Marriott’s management. stantial economies of scale.” Following a 20-month prison sen - “Owners and ownership groups are tence for tax evasion, Schrager and busi - The Best Of Both Worlds looking at ways to improve economies of ness partner attempted a Still, for many boutique and independent scale,” Kiradjian agrees. “Like anything comeback, setting their sights on the hotel hotel owners, the opportunity to enter into else, they want to collaborate on issues business. They purchased the Executive groups makes good business sense. that affect their businesses as well as Hotel for $60,000 and reopened it as “These hotels want to stay independ - receive the benefits and discounts that Morgans Hotel in 1984. The Madison ent while having access to all that the big- consortiums of any kind offer.” Avenue property featured sleek and stun - brands have to offer – from loyalty pro - But beyond mere buying power, she ning interior designs and a trendy Jeffery grams filled with loyal customers that they continues, the boutiques and independents Chodorow restaurant. can market to, to web sites that are more have a different business model from their Morgans was an immediate hit, and productive than their own vanity sites, to big-brand competitors. “Their philosophy it led the savvy duo to another success training programs that have been refined is sort of ‘anti-chain’ in that they desire to with the Century Paramont Hotel. After over time,” explains Marriott’s Kip create a space and experience for the cus - Rubell’s death in 1986, Schrager started Vreeland. And while Marriott Rewards tomer that has independence in the true the and opened members can earn and redeem points at sense of the word, which allows creativity properties in , London, San Autograph Collection hotels, Vreeland rec - and flexibility to be able to move swiftly Francisco, , as well as other ognizes that “customers may have to pay and without handcuffs.” New York hotels. By 1998, Schrager was a higher rate at these hotels as demand Hyatt’s Dailey believes that well- the largest private hotelier in New York. increases due to the affiliation.” established hotel chains are getting into

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In 2005, Schrager left Morgans Hotel Joie de Vivre (JDV) positions itself as the boutique space because that’s what 1 0 2

Group and created the Ian Schrager a collection of both boutique and inde - travelers are demanding. “Above all, this Y

Company. His latest venture includes a pendent hotels with their own personality, is the hospitality business and guests are R A partnership with design and name, all marketed under the the top priority,” he explains. “Many of U R B

called EDITION, developed with the same brand. According to JDV, the idea of the chains, Hyatt included, have hired cre - E F intent of creating a new brand of proper - belonging to a group is more attractive ative individuals with boutique hotel back - e v i ties in cities throughout North and South than being independent. grounds to drive the creation of their own t u c

America, Europe and Asia. The boutique “In today’s extremely competitive boutique brands. There’s a strong commit - e x E

wave has not been a smooth ride for hotel environment there are many benefits ment to create interesting experiences, l e Marriott in Hawaii, however; the Waikiki to being in a branded collection,” JDV’s with the explicit goal of not homogenizing v a r T EDITION made headlines in August, public relations director Lori Lincoln says. the hotel space.” s s

2011 when Marriott managers were “The hotels can cross-market and sell. After launching boutique hotels such e n i s

locked out by the hotel ownership group, They can offer loyal customers more loca - as Schrager’s Delano and SBE’s SLS Hotel, u B

33 SPECIAL REPORT | Independent Thinking

Dailey says he joined the Andaz team give high-standard training about how to boutique hotel has to offer. “Many travel because of the assets and possibilities that provide professional service. But here it’s managers do not leave their offices very a well-established organization such as different. Here we are talking about find - often or may not have personally experi - Hyatt can bring to the table to support a ing the right people who not only have the enced a hotel. You can’t judge a hotel sim - new lifestyle brand. academic preparation but they love what ply by its price and the photos on the “They recognize the need for an inde - they do, in order to provide the best expe - Internet. I would encourage travel man - pendent spirit, a bit of autonomy, to build rience ever to a customer. Once found, you agers to become more familiar with bou - the Andaz brand,” he says. “With a trust - make that employee part of your ‘family’ tique hotels as they may underestimate the ed company, large-scale resources, and a in order to make sure they don’t leave.” added benefits of service, décor, etc. and vibrant new boutique brand that’s given Di Ciaccio points to the Swiss College how this impacts the guest experience.” the freedom to thrive, the possibilities are of Hospitality Management, Switzerland’s “Travel managers should be prepared endless.” first boutique hotel management school. to pay that extra dollar to receive in The reason behind the across-the- “Boutique hotels can recruit trainees or exchange the attention to details which board move among the chains to enter the graduates from this young but traditional leads to the “wow factor” from their cus - boutique space, according to Kiradjian, is Swiss College. Here, a Swiss team of hote - tomer when he returns from his trip,” says the need to attract and retain the loyalty of liers and professors with international Di Ciaccio. “To do so I suggest to really the most profitable customers, driven by experience teach students the fundamen - understand the needs of the customer in an increasingly sophisticated guest profile. tals of boutique hotel service, which can term of location, schedule and tastes. “They became aware of the opportunity to be summarized in five words: Attention to Once you’ve decided which hotel to book, charge higher rates because of the percep - Every Single Detail.” pass this information through the hotel tion of design and higher levels of service The current trend for this segment is reservation. And don’t be afraid to follow from true boutiques,” she says. “This in definitely pointing towards the alliance up to make sure that it reached the man - addition to understanding that the travel - model, with the obvious benefits. “I am ager’s office. In this type of hotel usually ing consumers tastes have changed and in currently working on a branding project,” the manager is aware of the needs of every order to keep their customers loyal to the Di Ciaccio says. “It is a joint venture with single guest checking in and should always overall big brand, they had to address this the Harlow Group, a south Florida-based be happy to interact with agents.” and get into the game.” boutique hotel representation company. Travel planners should include a good For the smaller boutiques and inde - The brand will affiliate small independent mix of independent properties since busi - pendents that opt-in to similar alliances hotels that deliver a unique guest experi - ness travelers are requesting them more and stay true to their independence, ence. Our model allows affiliates to main - and more these days, Kiradjian says. Kiradjian adds, “they join small brands tain 100 percent of their identity. On the “The best way is to work through the and collections to take advantage of mar - other hand the hotel can benefit from sev - small brands and collections as well as to keting reach and ultimately, incremental eral marketing tools and be exposed to rely on the BLLA, who also has a consor - distribution channels. This can be success - markets that might be out of reach for a tia program for these properties.” ful as long as it is combined with a strong small stand-alone business. Improve Joie de Vivre’s Lincoln suggests shoot - online presence of their own including RevPAR, increase GOPPAR and generate ing straight for the brand representative. technology, social media and a powerful more profit thanks to creative revenue “As with the national sales offices for larg - web site.” management tools, online and offline cam - er brands, the brand representative can paigns. Combined marketing resources, help negotiate deals per city or groupings How Big Is Too Big? crossover campaigns making outreach of regions so that travel managers get the With more and more hotel chains entering towards key markets much more afford - best possible rates for their clients.” the boutique business, rooms per property able and accessible.” “‘Boutique’ was a clever way for hos - seem to be on the rise. “The great thing about boutique pitality to highlight, qualify and differenti - “Big players such as Starwood with hoteliers is that they are accessible,” ate a product,” explains Di Ciaccio, citing W and Element, Marriot with EDITION, explains Michael Mueller, one of the pio - what he calls “a landslide” of ever-bigger Hyatt with Andaz or the new fashion neers in the remarkable expansion of and more grand-sounding global brand designer brands like Versace, Missoni and Starwood Hotels & Resorts Worldwide promises. “All consumers knew already

2 1 Armani have been creating new ‘boutique’ back in the 1990s and today, the president that boutique implied small, cozy, high 0 2

brands to fulfill this market need. Now I and CEO of the loft-like NYLO brand. class, qualified, caring and last but not Y

R wonder how hotels so big can deliver such “Boutique hotels generally have less cor - least, personalized attention. So, the effects A

U an intimate experience,” says Di Ciaccio. porate- and more property-level decision and potential benefits are clear for all trav - R B

E He believes that boutique hotels should be making. This allows the hotels to remain el experts or individual travelers. It is then F

e small – which he defines as a maximum of flexible and cater to the needs of the up to the hoteliers to align with those v i t 100 rooms – trendy and chic lodging ven - client. Travel managers should definitely expectations which means that this con - u c

e ues that offer personalized services in a include at least one or two boutique or cept could be taken to all levels and all x E

l very intimate atmosphere. independent hotels in their discussions and budgets of the hotel industry. Alliances e v

a “In this type of property, labor cost is should keep in mind that boutique hotels carry the promise of greater impact r T

s substantially higher,” Di Ciaccio points are able to think outside the box.” because they allow the property to keep s e

n out. “Five star consolidated chains, man - Mueller believes travel managers their own identity, which is the factor that i s BTE u agement companies, franchise brands all should get out and get to know what a makes the difference.” B

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