Operators Are Redefining Luxury

NEW YORK— Ultra-luxury hotel development appears to be maintaining a good pace despite signs of a slowing economy. Marriott International has signed with upscale jeweler Bulgari SpA to build seven hotels over five years; Hilton Hotels Corp. and Hilton Group Plc are expanding the Conrad Hotel chain worldwide to develop a “six-star” brand, while Four Seasons and Ritz-Carlton continue to develop properties at a clipped pace. Other luxury deals, meanwhile, that were crafted before the “financial correction” of 1998, are now taking shape, ranging from the St. Regis Monarch Beach, to open in Dana Point, CA in July, to The Peninsula Chicago to open when (am getting date). They will join the recently opened Mandarin Oriental Miami, and Bacara, which just opened outside of Santa Barbara, CA. The high-flying consumer market for whom these luxury projects were created appears to show no sign of slowing its spending. Whether or not corporate group travel, typically the bread and butter for these properties, will slow, remains to be seen. One thing is certain for all of these hotels, regardless of what the economic front looks like. Each will have to provide a sharp focus on defining their view of luxury in order to prove their worth in a competitive marketplace. That’s because in this demanding high-end segment, luxury amenities quickly become standards to the upscale traveler, creating the need for operators to constantly create new concepts and amenities to make their ultra-high-end offerings stand out. “The idea of what is deluxe is something that constant evolves, nothing is static about it,” said Welf Ebeling, executive vp/COO of Leading Hotels of the World. Using the evolution of technology as an example, Ebeling pointed out that “today, high-speed Internet access is not a luxury, it’s an essential, so you build on that. For example, a flat-screen TV in the bathroom is a luxury item. “There are many items that were considered luxury in the past that are such common standards now, they don’t really warrant the accolade of being luxury,” he continued. “For example, separate shower stalls 15 to 20 years ago were considered very luxurious; now if you are designing a luxury hotel it would be a standard feature.” Meanwhile, other “luxury” features hotels offered in the past, such as formal dining, may now be passé, he said. “Is wearing a suit to a dinner a luxury now? No,” said Ebeling. Add to this challenge the fact that a new breed of luxury travelers has been borne of the New Economy. “With the boom that occurred in 1995 to 2000, we saw a tremendous amount of money being made, which has fueled the expansion of the luxury customer,” said Tim Haskin, managing director/executive vp of Tishman Hotel Corp. From Haskin’s viewpoint, room size, super-luxury bathrooms and a high level of service are the elements defining luxury in the latest new projects coming out of the ground. SUBHEAD HERE: Feeling Right At Home The St. Regis Monarch Beach is being careful to define luxury because it knows the profile of its guests well. That’s because Makar Properties, which is developing the hotel, is also the developer of a community of luxury homes which surround the property. “We sell houses in the $4 million range. [So we know for those guests] to leave their houses and go to the best hotel in the market you’ve got to do something spectacular and you’ve got to make them feel at home,” said Paul Makarechian, president/CEO, Makar Properties. Combined with the fact that the St. Regis “is trying to please a lot of people with this hotel,” management has created “a menu of opportunities,” said Makarechian, which includes access to “a beach club, golf, [30,000 square-foot] spa, fabulous meals, pool cabanas with satellite televisions and safes.” The St. Regis Monarch Beach will boast large guestrooms (535 square feet) and large bathrooms with separate shower stalls. Rooms will also have high-speed Internet access as well as 32-inch fla