While once the luxury hotel segment was dominated by only a handful of well-known brands such as Four Seasons and Ritz-Carlton, there has been a recent surge in the number of new hotel brands positioned at the top end of the market.
Given the high demand currently enjoyed by many luxury properties, hospitality industry consultants say most of these new brands can expect to find a ready supply of business.
“There is definitely room for more luxury brands, especially now that consolidation has meant that there are now relatively few hotel companies out there,” says Los Angeles-based hotel attorney and consultant Jim Butler, chairman of JMBM Global Hospitality Group.
Here’s a sampling of new names to watch for in the upscale hotel market:
Waldorf=Astoria Collection
Last year Hilton Hotels Corp. launched the Waldorf=Astoria Collection, a brand of hotels with the stated intention of growing primarily through the acquisition of prime hotels in worldwide locations. With the Waldorf=Astoria in New York serving as both its flagship hotel and namesake, the Collection also includes three resort properties in the U.S.: the Grand Wailea Resort in Maui, the Arizona Biltmore Resort & Spa in Phoenix and La Quinta Resort near Palm Springs, Calif.
Hilton recently announced its first new-build hotel for the brand, the Waldorf=Astoria Beverly Hills Hotel, a 120-room property that will be part of a long-term $500 million revitalization of the nine-acre site of the Beverly Hilton in Beverly Hills, Calif. The Waldorf=Astoria and the Beverly Hilton, which recently completed an $80 million renovation, will be part of a complex that will also include residences, gardens, a public art collection, an expanded pool area, and an executive conference center.
Capella Hotels & Resorts
Founded by Horst Schulze, the former president of Ritz-Carlton Hotel Co. and now president of Atlanta-based West Paces Hotel Group, Capella Hotels and Resorts is comprised of a growing portfolio of deluxe boutique hotels designed to offer both individualized service and resort-style amenities.
While most Capella hotels under development are in Europe and Asia, projects also include a 148-property in Telluride, Colo., scheduled to open in late 2008. Located in Telluride’s Mountain Village ski resort, Capella Telluride will offer 100 guest rooms and 48 residential units in a ski-in, ski-out location with amenities that include a full-service spa, fitness center, ice skating rink, retail shops, and restaurants.
Another Capella resort property is under way on Mexico’s Baja California Peninsula in Cabo San Lucas. Scheduled to open late this year, the Capella Resort & Spa will include 50 residences and 66 guest units comprised of rooms, suites and beach casitas.
Solis Hotels and Resorts
West Paces Hotel Group has another luxury brand in the pipeline, Solis Hotels and Resorts, which is to grow through both new developments and acquisitions of existing properties. The stated intent of the brand, which will have locations in both resort and urban areas, is to deliver gourmet dining, extensive spas and enrichment activities on the order of archeological expeditions and culinary demonstrations.
Among the properties under development is the Sunny Isles Solis Resort, Spa & Residences in Sunny Isles, Fla., a beach community near Bal Harbor. Comprised of 140 guest rooms and 130 residential units, the resort is to include a full-service spa, meeting facilities and a signature restaurant. Completion is slated for late 2008.
Planned hotels in urban locations include the Solis Hotel Chicago, a high-rise property with 454 guest rooms that is the conversion of an existing property, and The Stanbury–A Stolis Resort & Spa, a 144-room boutique hotel with meeting space located outside Atlanta in Alpharetta, Ga.
“1” Hotel and Residences
Barry Sternlicht, former chairman of Starwood Hotels and Resorts and now head of Starwood Capital Group, a real estate investment firm, recently announced plans for the launching of a luxury, eco-friendly global brand called “1” Hotels and Residences. Built to comply with standards set by the U.S. Green Building Council, the properties are to combine environmentally sustainable architecture and interior design with high standards of service and comfort.
“Guests and residents will not necessarily be conscious of all the green aspects of ‘1,’ but they will be delighted by the richness, beauty and variety of colors, textures and materials,” Sternlict said when announcing the new brand last fall. “The green theme will only be noticeable to the extent that it will help create a healthy and invigorating environment.”
The initial four properties in the U.S. will be new construction. The first will be the “1” Hotel and Residences in Seattle, expected to open in late 2008. Following Seattle, additional hotels are slated for Mammoth Mountain, Calif.; Scottsdale, Ariz.; and Ft. Lauderdale, Fla. Other locations under consideration include New York, Los Angeles and Washington, D.C.
Features of the properties will include highly personalized concierge services and spas with extensive treatments and wellness programs. In keeping with the sustainable theme, restaurants will emphasize ingredients from local farms.
Watermark Hotels
Last year hotelier Patrick Kennedy, former owner of the Watermark Hotel and Spa in San Antonio, Texas, announced the formation of a new Watermark brand for luxury hotels to be developed in select locations around the country. Although Kennedy has since sold the San Antonio property, which was recently ranked as the second-best hotel in the U.S. by readers of Conde Nast Traveler, he retained the rights to the Watermark name for future hotels.
The first new Watermark hotel is earmarked for a 40-acre site in Las Colinas, a master-planned community in Irving, Texas, and will be adjacent to a convention and entertainment complex called Las Colinas Live! The 120-room hotel will include 20,000 square feet of meeting space, a full-service spa and up to 40 condo units. Both the hotel and convention complex are expected to open in 2009.
