THE OFFICIAL MAGAZINE OF THE AMERICAN HOTEL + LODGING ASSOCIATION JUNE 2015 CREATE YOUR OWN SUCCESS HOW HOTEL INVESTORS PUSHING ARE DEVELOPING UNIQUE VALUE PROPOSITIONS RATES INSIDE THE QUEST TO GET MORE OUT OF EVERY ROOM NIGHT CHILD’S PLAY ESSENTIALS THE SECRET TO 3FOR GETING YOUR NEXT FAMILY LEISURE PROJECT FINANCED BUSINESS BEN WEPRIN FOUNDER AND CEO AJ CAPITAL PARTNERS LODGING MAGAZINE @LODGINGMAGAZINE FRONT ››››››››››››››››››››››››››››››› DESK NEWS, IDEAS, AND INSIGHTS STANDING OUT Ben Weprin, Founder and CEO of AJ Capital Partners, ensures each of his properties has its own personality that speaks to adventurous travelers. SUCCESS STORY TORI SOPER TORI Making the Grade A HISTORY OF HIGH-PROFILE BOUTIQUE PROJECTS HAS LED HOTEL DEVELOPER AJ CAPITAL PARTNERS TO INVEST IN THE CREATION OF GRADUATE HOTELS BY EVAN GROSSMAN THE IDEA OF A COLLEGE-THEMED HOTEL screams the curation of each one of our projects.” The AJ in the kitsch and pennants and banners, but you won’t firm’s name stands for Adventurous Journeys, which is find any of that near Graduate Hotels, a new line of part of the identity of a group that strives to be urban, lifestyle-centric boutique hotels popping up in college trendy, hip, and bold and part of what they want you to towns across the United States. There are no furry get out of staying in their one-of-a-kind hotels. “It’s all school mascots doing cartwheels down the halls and about inspiring somebody. We’re all storytellers in this no red beer pong cups stacked in the lounge. Ben office. We all work collectively to design and build these Weprin’s AJ Capital Partners has taken a more sophis- hotels. Everyone is important. Everyone has ideas.” ticated approach to creating properties that cater to a AJCP is a firm of 24 creative professionals that places diverse community of visitors and locals. a heavy emphasis on providing a unique backdrop for “Storytelling is the hallmark of our company,” guests. It’s also a private equity firm with an established Weprin, 36, says. “We try to integrate the story of the track record in the lifestyle-driven investment industry. community and, more importantly, the people who The group develops, owns, and operates a variety of make each destination so distinctive and unique into commercial and hospitality assets and businesses, such JUNE 2015 LODGINGMAGAZINE.COM 17 ›››››››››››››FRONT DESK as the Malliouhana Resort and Spa in Anguilla, which relaunched last November as an Auberge Resort follow- ing a three-year closure, acquisition by AJ Capital, and an 18-month redesign. The firm has also received accolades for its joint venture with John Pritzker, chairman of Commune Hotels & Resorts and founding partner of Geolo Capital, to acquire and convert the for- mer Chicago Athletic Association build- ing into a 241-room boutique hotel. The long-vacant Venetian Gothic landmark, dating back to the 1890s, sprung back to life on May 27, after a two-year restoration project. The hotel is run by Thompson Hotels, which falls under the Commune umbrella. AJ Capital also has a stake in Thompson Nashville in the Gulch, which is scheduled to open in 2016, and Thompson Chicago, which opened in 2013. The AJ in the firm’s name stands for Adventurous Journeys, which is part of the identity of a group that strives to be urban, trendy, hip, and bold and part of what they want you to get out of staying in their one-of-a-kind hotels. “We spend a ridiculous amount of time researching each one of our markets, spending a lot of time in focus groups and really submersing ourselves in the community,” Weprin says. “We TO EACH THEIR OWN want to create fun, vibrant, and inspir- The lobby at the Graduate ing places.” Athens (above) and a Perhaps none of the firm’s more than guestroom at the Graduate 20 boutique hotels and opulent resorts Tempe both display unique design characteristics. personifies that communal connection more than the Hotel Lincoln in Chicago. Xxxx Crafted to transform guests back to vin- tage Chicago in the heart of one of the city’s iconic neighborhoods, Hotel Lin- Number of Graduate coln sits on the banks of Lake Michigan Hotels AJ Capital Partners and offers sweeping views of the water aims to launch in the and Lincoln Park. “We designed it to ap- next five years. peal to a 10-year-old and a 72-year-old,” 15-20 Weprin says. “If you stay in our hotels, 18 LODGINGMAGAZINE.COM JUNE 2015 FRONT DESK›››››››››››››››› CONSISTENT you’ll see a very wide range of people. It’s greatest challenge for developers in college LACK OF not just young artists. We’ve got a really markets is drawing customers from a wide QUALITY wide variety. It’s like a concert—everyone’s swath of travelers. In addition to families LEADERS IN LODGING there for the same experience.” visiting campus, college hotels can pull expressed their issues Guests and locals alike are drawn to sports fans, alumni, visiting professors with Airbnb at the AAHOA Hotel Lincoln’s F&B offerings—Elaine’s and speakers, and business travelers. “We Conference in April. Here’s Coffee Call café, the farm-to-table Peren- look for travelers, not necessarily tour- what they had to say. nial Virant restaurant, and the J. Parker ists—people who have done their research Rooftop Bar for great views of the city. and are looking to get submersed in the The inclusion of a unique bar, restau- local culture,” Weprin says. “Not everybody rant, and coffee shop helps to create the connects with the Graduate Hotels or one of our edgy hotels. It’s for a certain like-minded traveler.” GOOD ADVICE There are currently “We’re hearing from owners in three open Graduates, big markets like New York City BEN WEPRIN, FOUNDER AND CEO OF AJ CAPITAL and San Francisco that they PARTNERS, OFFERS ADVICE FOR CREATING A one in Tempe, Ariz., near Arizona State University; aren’t seeing the compression SUCCESSFUL BOUTIQUE EXPERIENCE. they saw during previous peaks one in Athens, Ga., close because so many rooms are on 1 Form an emotional connection with guests. “Boutique is more of to the University of Geor- the market illegally with large a mind-set than a number of keys. Boutique now means so many gia; and one in Madison, apartment complex owners different things. You can see a 350-room convention hotel that Wis., by the University [operating as Airbnbs] that ar- calls itself boutique because it has an all-white lobby.” of Wisconsin-Madison. en’t regulated or paying taxes.” Locations in Charlot- GEOFF BALLOTTI 2 Target like-minded travelers. “Those people are going to pick us tesville, Va., and Oxford, President and CEO, Wyndham because we have all the characteristics they’re looking for and it’s Hotel Group a unique experience that’s not particularly easy to find elsewhere Miss., are scheduled to in the market.” open this summer as AJCP plans to launch 15 3 Position the hotel as a backdrop for creating memories. “We to 20 new Graduate Hotels, don’t necessarily develop or build or buy to markets. We try to including properties do assets that are really distinctive and unique and have good in Richmond, Va., and longevity.” Lincoln, Neb., within the next five years. “Lack of consistency, lack of AJCP’s acquisitions quality, security issues, and nostalgic town square model AJCP is team scouts locations and targets specific many other things will ultimately going for, where everything happens at the markets based on metrics like population take consumers away from hotel. Trademarks like an eclectic lobby, a and size of the school but also measures [Airbnb]. So, I would rather pop-art front desk constructed of vintage intangibles like school spirit and academic spend time on what I control suitcases, and an artsy, sophisticated vibe culture and then goes after them aggres- to make sure that your hotel is represented in the best form at are designed to appeal to visitors across sively, Weprin says. Each market calls for a all times.” generations. Hotel Lincoln was trans- distinct asset. Keeping with AJCP’s one-of- RAJ TRIVEDI formed in 2012, rebuilt on the bones of an a-kind blueprint, no two Graduate Hotels EVP and Chief Development Officer, iconoclast but dilapidated Days Inn. Its are the same. Each property is meticu- La Quinta Inns & Suites rooms are classic, preppy, and fun. Above lously designed with local culture in mind, all, Hotel Lincoln is dipped in Chicago which can show up on the walls in a work and oozing with local culture. “A hotel is a of art by an artist native to the area or the backdrop for creating memories,” Weprin canoe-like lighting fixtures in Wisconsin. says. “Having something that’s unique and There is no guidebook that illustrates why distinctive really sets the tone.” a certain piece of art makes it into a hotel. Hotel Lincoln sets the tone for more “A lot of them aren’t very obvious,” than just a trip to Chicago. Its unique place Weprin says. “Discovery is a big part of “When I talk to folks that we’re in the market also inspired a whole new what we do. It’s sort of found. All the staff hiring and I ask how many have $500 million vertical that debuted last year is pretty well versed in what we’ve done at used Airbnb, two thirds of their hands go up. My second ques- with AJCP’s Graduate Hotels, a line built each of these properties and can explain tion is how many have used it to capture a piece of a diverse legion of why a certain piece is hanging in the lobby twice, and not many go up.” travelers that frequent college towns.