A Part of the Archive Commentary Series, Exclusive to Members
Originally Published in the August 22, 2018 Boutique Weekly Newsletter
Written by Frances Kiradjian, Co-Founder, Stay Boutique and CEO, BLLA
As we march further into this exciting time in hospitality, the boundary lines between various lodging accommodations grow increasingly blurred.
Now more than ever, mega-brands are adopting key pieces from the boutique handbook in order to stay competitive and increase occupancy rates. Conversely, brands who evolved from the hostel model are pivoting away from shared sleeping quarters to move toward a cross somewhere in-between a hostel and boutique vibe.
Generator found their footing in the modern lodging world with their successful hostel model which can be found sprinkled throughout Europe. However, when pursuing their expansion state side in Miami, the execs knew with the swift changes our industry has been experiencing, dropping the hostel identifier from their branding would allow them to reach the widest spectrum of travelers.
Their aggressive pursuit of the boutique model doesn’t stop there. The indisputable rise and dominance of coworking spaces (in and out of hotels) speaks to a consumer demand for accommodations that cannot be met with the historical understanding of what a “hotel” offers.
“We’re just starting a product where you buy your room for a month and you get a workspace to go with it,” he said. “I think this is somewhere where the segment will be going to. We’ve also been approached by some of the co-working operators because we have some spaces that could be converted. I’d say watch this space.” said Generator CEO Alastair Thomann in a recent Skift article. The article touched on the evolving needs of travelers, the convergence of lodging categories and how brands who don’t adapt to the shift will stifle opportunity for longevity.
While their primary purpose may be to provide shelter whilst away from home, modern hotels are so much more than turned-down comforters and room service. Today’s most successful hotel brands are growing organic followings by adhering to a model established by the hotels that are really boutique, as identified by the official association, BLLA & Stay BoutiqueTM.
Co-living and co-working solutions continue to stake their claim in this newly formed conglomeration of hospitality offerings. This is a major event for our industry and should excite any hotelier or hospitality executive who has the courage (and industry insight) to shake things up!