Limited Service and High Design Changing Hotel Branding

By David Ashen Principal and Founder, dash design | November 26, 2017

When I walked into the new Hyatt Place in Legacy Village near Cleveland a few weeks ago, it was apparent a shift had taken place. This was no limited service brand designed for low-cost and convenience. Gone were the ho-hum finishes and swath of industrial materials. Instead, I was greeted by a sophisticated palette that complimented the interior's modern furnishings, including a light fixture that I recognized as that of an admired British designer.

Noticeable improvements in limited service brands' interiors and guest experiences aren't especially new, at least when it comes to select independent brands. But the advance of thoughtful design across an increasing line of conventional big brands' limited service properties is. And it's a welcomed change.

Much of the high design now seen in limited service brands stems back to about a decade ago when two independents opened the way for design innovation in the properties; Alex Calderwood's Ace Hotel and Andre Balazs' Standard Hotel. The brands' fresh interiors combined with their of-the-moment vibe and attention to art belied each property's reasonable rates, treating guests with an unexpected experience that they embraced from the start.

When the Ace Hotel Portland opened in 2007 (one of my favorite places to stay), it featured inexpensive tiles and other materials used with a sense of style, along with a $60-to-$70 tab for an overnight room with a shared bathroom, $100 for room with a bathroom and $130 for suite. The combination of thoughtful design with low-cost rates was extraordinary. After all, guests of limited service brands like Choice Hotel, Marriott Courtyard and Residence Inn had come to expect low-cost rates at another kind of cost – uninspired accommodations with few amenities, save a kitchenette for complimentary breakfasts and, perhaps, a bar. But at Ace, even the option of sharing a room or bathroom, which, while not everyone's ideal, tied into the burgeoning millennial generation's desire for accommodations that promoted sociability, including the presence of public areas outfitted for spontaneous mingling. By providing an environment that offered the community of youth hostels with the inspired design of an elevated property at an affordable price, Ace captured the loyalty of young adult travelers, especially with its later openings in New York and London.

What Balazs did with Standard Hotel and Calderwood with Ace Hotel was shift the focus of a brand from a commodity to a desire. They realized that guests don't want to forgo design and inspiration for price and their victories at providing both proved the sentiment. So much so, in fact, that low-cost now is viewed by many business and other travelers as an unsuitable exchange for interiors put together without much thought for their design. It's no wonder that Ace Hotel's success at targeting and attracting the younger demographic through considered design, style and experience was picked up by big brands' limited service properties, including those of Marriott, Hilton, Hyatt and Starwood, whose Aloft hotel was one of the first limited service properties by a big brand to step out of the traditional thought that low-cost accommodations negated the need for high design. At the time, the hotel, which had an urban vibe contained in a suburban box, had rethought its brand, looking more closely at the business traveler's needs. It found what Ace and Standard already knew – that travelers wanted something different than the ready availability of tired, cookie-cutter hotels. As a result, Aloft adopted a modern, more sophisticated design for its rooms and public spaces, not only elevating the brand to an aspirational level but also fully embracing an urban loft ethic. In essence, Aloft used less expensive materials in a more thoughtful way, demonstrating that low-cost design didn't have to feel cut-rate.

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Coming up in March 2019...

Human Resources: An Era of Transition

Traditionally, the human resource department administers five key areas within a hotel operation - compliance, compensation and benefits, organizational dynamics, selection and retention, and training and development. However, HR professionals are also presently involved in culture-building activities, as well as implementing new employee on-boarding practices and engagement initiatives. As a result, HR professionals have been elevated to senior leadership status, creating value and profit within their organization. Still, they continue to face some intractable issues, including a shrinking talent pool and the need to recruit top-notch employees who are empowered to provide outstanding customer service. In order to attract top-tier talent, one option is to take advantage of recruitment opportunities offered through colleges and universities, especially if they have a hospitality major. This pool of prospective employees is likely to be better educated and more enthusiastic than walk-in hires. Also, once hired, there could be additional training and development opportunities that stem from an association with a college or university. Continuing education courses, business conferences, seminars and online instruction - all can be a valuable source of employee development opportunities. In addition to meeting recruitment demands in the present, HR professionals must also be forward-thinking, anticipating the skills that will be needed in the future to meet guest expectations. One such skill that is becoming increasingly valued is “resilience”, the ability to “go with the flow” and not become overwhelmed by the disruptive influences  of change and reinvention. In an era of transition—new technologies, expanding markets, consolidation of brands and businesses, and modifications in people's values and lifestyles - the capacity to remain flexible, nimble and resilient is a valuable skill to possess. The March Hotel Business Review will examine some of the strategies that HR professionals are employing to ensure that their hotel operations continue to thrive.