NEW YORK—Owners and executives in the hospitality industry continuously seek to gain competitive advantages in the marketplace. Several industry experts explored the benefits of using design as a tool to increase profitability, functionality and popularity of a hotel, during the “Gaining a Competitive Edge Through Design” workshop held here today during the NYU Hospitality Industry Investment Conference.
Each speaker presented a case study on how design offered greater profitability. James M. Erlacher, VP of development, Accor, S.A., shared the company’s recent growth of the design-centric brand Mama Shelter, which originated in France. The portfolio consists of five properties and a new hotel opening in Los Angeles this year.
Mama Shelter provides contemporary guestrooms, which include video technology for guests to stay connected to social media. Communal, restaurant spaces and meeting rooms feature playful design elements. Accor has also collaborated with noted architects such as Philippe Starck to bolster its portfolio’s design elements.
Dolce Hotels and Resorts, now owned by Wyndham Hotels Group, transformed The Alexander in downtown Indianapolis into a meetings-oriented property. The 157-room hotel offers an array of flexible meeting spaces, food and beverage outlets, including nourishment hubs that change menus four times per day and local artwork throughout the spaces, noted Ted Brumleve, director, design and construction, Dolce Hotels and Resorts.
The panel’s moderator, Jonathan Nehmer, chairman and founder, Jonathan Nehmer + Associates, Inc., stated that the ISHC CapEx 2014, a study of capital expenditures in the hotel industry, will be released next week. Key findings include repair and maintenance was fairly consistent between 4.3% and 5%, CapEx went from 7% in the last study to over 11.6% and select service needs less percentage of CapEx compared to full service.
The panel also included Thomas Healy, SVP, asset management, Strategic Hotels & Resorts, Inc.; Greg Bingaman, director, asset management, Westmont Hospitality Group; and Alan Benjamin, president, Benjamin West.