In part 2, as a follow up to the previous analysis on fashion and accessories, we are looking at predictability – opportunities, challenges and trends in the luxury hospitality industry.
The past decade has seen a flurry of new luxury hospitality brands, few independent and most, belonging to a larger hotelier, however, in most cases, they are now facing an identity crisis, clearly indicating the lack of a solid foundation of the DNA of the brand but also the fact that the company did not anticipate neither competition, nor changes in consumer needs and preferences.

One such example is the Marriott Group which boasts the highest number of luxury hotel brands: JW Marriott, Ritz Carlton, EDITION, Bulgari and Autograph. While in the case of Bulgari and Ritz Carlton, the two brands would have a very solid foundation, the other brands would generate numerous question marks as to what makes each brand different – what are the differences between Marriott and JW Marriott or the differences between JW Marriott and Ritz Carlton – the latter example arising especially because of mixed use developments like in Los Angeles (L.A. Live) or Beijing, among many other examples globally, the two hotel brands would co-exist under the same roof.

One such striking similarity which could give way to confusion is The Ritz Carlton in Vienna (Austria) which opened less than a year ago, and which boasts an interior design and facilities which made me think, during my stay, that the property could perfectly be a JW Marriott. Ironically, when the development works started more than 6 years ago, the owners have signed a long term management agreement with Shangri-La, and Vienna would have thus been the first property of the Asian chain in Europe.

It is obvious that the need for diversification came as an anticipation of needs and a finer targeting of consumers. However, the interaction and the experience of guests with each of the brands could not have developed more predictable – from placing a reservation, checking-in, to the actual stay – both ‘hardware’ (interior design, facilities etc) and ‘software’ (service) being almost identical. Therefore, the only clear benefit would be the group’s leveraging in terms of rates, especially corporate. Many such similarities exist between Autograph and Ritz Carlton properties, especially from the point of view of interior design, type of building and location.

However, despite the somewhat confusing path of several brands, Marriott has taken a most sensible approach, to not only limit itself at managing / operating properties under third party management agreements but also own them. This is the case with the EDITION brand launched almost five years ago in partnership with Ian Schrager, as a distinctive luxury lifestyle hotel brand. It is the newly opened EDITION Hotel in London, which is the first property to follow this new approach and the results are evident – a solid concept with a very well defined brand DNA with clear differentiating factors from its direct competitors Andaz (Hyatt Intl) and W (Starwood Hotels).

With the The London EDITION Hotel, it is for the first time in almost a decade, I could truly grasp a strong sense of innovation at all levels, the company enjoying the ‘luxury’ of implementing various ideas without having to consult with owners/developers. What was most impressive to me, during my stay at The London EDITION last week, was the exceptional standard of service, both consistent and most genuine and warm, in less than a week from opening. Rarely, have I seen, at any luxury hotel in the past years, such a well bonded and motivated team, with an incredible passion to serve, and at the same time, displaying a sophisticated attitude – warm, yet slightly formal, adapted to each and every guest.
Spanish based international hotel group Melia, added the ME Melia brand, as a retort to Starwood’s W Hotels, however, copy pasting many detail of the concept and the brand identity – from the cutting edge, colorful and flamboyant design to the entertainment and F&B, several of the Me Melia hotels strikingly resemble W Hotels.

Within giant Starwood Hotels, W Hotels have been experiencing a gradual decline brand awareness, the core concept of the W aging much faster than probably initially expected, especially in major metropolis around the world, where they have been facing stiff competition from chain and independent luxury design hotels. The essence of the W Hotels concept, the WOW factor in music, retail, food and Spa has been looking more and more lackluster at many properties around the world. However, visiting several W Hotel properties, I could grasp that the company has been striving to re-invent and re-fresh the brand.

Oliver Petcu
CPP-LUXURY.com