Battered Boutique Label Needs ‘Lifestyle’ Change: Panel

NEW YORK— “Lifestyle” is the new style for boutique hotels. That was the message delivered April 24 by an international panel of hotel, marketing and design experts meeting here. The half-day symposium, brought to New York for the first time, was presented by Sweden-based Overlook Hospitality Management AB in association with operating/consulting firm The Hospitality Group International, Inc.; Hospitality Sales and Marketing Association International, content provider Hsyndicate.com and portal Hospitality Net. Like the segment itself, the panel proved an eclectic mix. Included were: international designer Adam Tihany; Chip Conley, founder of Joie de Vivre Hotels; Sean Hennessey, director of global hospitality and leisure industry services, PricewaterHouseCoopers; Brad Wilson, general manager of the W-Union Square New York; Per Lydmar, chairman of Overlook Hospitality Management and founder of the Lydmar Hotel-Stockholm, and Claus Sendlinger, CEO, Lebensart Global Networks, a Germany-based lifestyle marketing firm. It was moderated by HGI president/CEO Reto Cantone. “No one’s going to walk into a hotel that doesn’t ‘buzz,’” Lydmar told the audience of approximately 90 attendees. The former chairman of the Stockholm Hotel and Restaurant Association created his own hotel with just that thought in mind. “We didn’t have the word for it at the time, but we wanted to do something different.” To appeal to the trendy city market, he installed live music in the lobby, ran art exhibits throughout the hotel and generally made the property more interactive. PwC’s Hennessey said “it was just a matter of emphasis as far as the difference between lifestyle and boutique,” and didn’t see the boutique name tag going away. He maintained prospects for the segment continue to be very strong. “The boutique hotels have taken it on the chin a little bit during the past half year, but that’s due to a number of factors beyond their control.” For one thing, Hennessey said, a lot of them are relatively new, “so they’re still getting their sea legs in terms of competitiveness. A lot of them have very little meeting space, which is a tool hoteliers use to try and boost demand during weak periods.” Many do have hot-spot bars and/or restaurants that drive enormous local traffic into the hotel, creating a significant revenue stream, as well as awareness of the property. Although Lydmar saw a trend away from putting an f&b operation in the lobby, a prime example of success along that line is Starwood Hotels & Resorts’ W brand, whose “living room” lounge areas are a key draw, particularly for the markets— fashion, design, advertising, entertainment and media— to which lifestyle hotels appeal. “We’re seeing more and more a diverse population of guests that come from multiple markets. But they definitely do have a profile that’s somewhat similar,” said the W-Union Square’s GM Wilson, noting the top characteristic is they’re ego-driven.” Toward that, staff training at lifestyle hotels is critical, said Wilson, particularly since the staff is also image driven, and lodging is probably not their first career choice. “We need to keep them interested in what the hotel is,” said Wilson. Known for using psychographics instead of demographics and publications as individual hotel models, Joie de Vivre’s Conley felt “people want style as never before…we live in an era where, through technology, we’re smarter and smarter about what our customers specifically are looking for. So the one-size-fits-all plan of the past for large hotel chains doesn’t work anymore.” Cantone said in terms of lifestyle hotels’ influence on traditional hospitality, “they drive higher occupancy and room rates, increased food and beverage revenues through vibrant activity in bars and restaurants. A strong profile of these properties in key media have conditioned hotel groups and brands to embrace what was originally perceived as a failing trend.” Which could still happen if hoteliers