Tag Archives: brands

Hotel Developers, Investors Betting Big on Store, Lifestyle Brands

Like Beer Conglomerates Adding Craft Brewers to Stay Hip (and Relevant), More ‘Soft-Brand’ Store Players Becoming Growth Drivers for Mega-Hotel Companies

Rockbridge’s Art Deco-style Noelle hotel brand is focused on young, stylish customers. Credit: Rockbridge

As competitors from Airbnb and other online hospitality services heightens, the world’s biggest hotel brand names have signed up with a growing variety of store and way of life hotel experts in attempting to grow bigger by going small.

Openly traded business like Choice Hotels International (NYSE: CHH), Marriott International Inc.(NYSE : MAR)and Hyatt Hotels Corp. (NYSE: H) in addition to financial investment management companies such as Rockbridge and smaller sized operators such as Denihan Hospitality, are significantly opening boutique-style mini-chains focused on particular way of life travelers, with an emphasis on tech amenities, off-beat, non ‘cookie-cutter’ homes and hip d├ęcor.

Denihan, Trammell Crow Co. and KochSmith Capital on Tuesday revealed strategies to bring the Denihan’s 4th James Hotel brand property to Armature Functions, a mixed-use advancement beginning later this year in Washington, D.C.’s NoMa community.

Trammell Crow and KochSmith will establish the 204-room hotel and Denihan has actually been hired to manage the high-end store home. The James Washington D.C. is scheduled to open in the winter season of 2020, together with the remainder of the 780,000-square-foot Armature Works development, that includes a 465-unit apartment building, a 170-unit condominium building, outside public spaces and 42,000 square feet of street-level retail.

Vera Manoukian, president and chief running officer of Denihan Hospitality, called the collaboration with such deep-pocketed backers “a perfect example of how we mean to utilize the power of our distinct brand names and operating platform to drive sustained development.”

Another current example is Rockbridge’s Noelle, a 224-room, 13-story Art Deco-style hotel at 4th Ave. and Church St. in a section of downtown Nashville becoming known as “Store Row” for the cluster of trendy, experience-focused hotel and retail organisations accommodating the flourishing city’s growing diverse population and company base.

Hospitality REITs such as Choice Hotels were early adopters of shop and other soft-brand concepts. Choice opened 45 of its Ascend Collection-branded upscale hotels in 2017 alone.

“Ascend continues to be a terrific value proposition for developers. We’re seeing a lot of new construction,” stated Dominic Dragisich, Option chief monetary officer, in a current call with investors.

Marriott has opened 27 Tribute-brand residential or commercial properties all over the world totaling 6,224 rooms, with 16 totaling 2,148 rooms in the advancement pipeline, including a 127-room property announced today in downtown St. Paul, MN. Building in the Park Square Structure will begin this summertime.

Hyatt has ramped up construction of its Hyatt Centric store brand name, including a 127-room home prepared for opening in 2019 near the Sacramento Kings practice facility in downtown Sacramento.

The introduction of brand-new technologies has opened the shop sector to hotels and practically all other industries, said Frances Kiradjian, CEO of the Shop & & Lifestyle Lodging Association.

“We have become an inclusive community. Gone are the days when store just indicated intimate,” Kiradjian said. “Candy shops, coffee homes as well as fitness studios have actually used the potential of shop. The truth is that new technologies and an increasingly connected community allow entrepreneur to assist in wholesome experiences to any group, no matter the facility or product being vended.”

With so many new brands out there, owners or all types are working overtime to distinguish their offerings from the abundance of launches by competing chains.

“We’re looking forward to see if we’re being impacted by some of these other soft brand name launches, but we’re just not seeing it in the development neighborhood at this moment,” said Dragisich of Choice Hotels.

Whatever the brand-new pattern towards genuine accommodations experiences may end up being called, it is here to stay, kept in mind Court Williams, head of executive search operations in New york city City for hospitality research company HVS.

With millennial journeys demanding hyper-local experiences particular to a location, numerous lifestyle hotel brands have included restaurants, bars as well as lobbies targeting local citizens as much as tourists. The have to feel safe in this mix of locals and journeys offers acknowledged brand names the edge, Williams added.

“Lodging experiences backed by the track record of recognized hotel brands provide a greater level of self-confidence for travelers, which is one factor the increase of shared lodgings [Airbnb and other lodging leased by personal property owners] has not truly affected the hotel industry,” Williams stated.

Managing this mix of simpleness and immersive experiences will be challenging for brands, Williams acknowledged.

“However with lifestyle hotels currently comfy with being ‘different’ from conventional brands, this sector is perfectly poised to end up being ground no for future travel,” he included.

Out With the Old: Gap Closing 200 Shops, Shifting Focus to Old Navy, Athleta Brands

Old Navy Posts Rising Income Even as Sales Fall at Gap and Banana Republic Stores

Apparel mainstay Gap Inc. (NYSE: GPS) is moving its focus from its earliest and traditionally most successful brand names to its newest and fastest growing brand names in Athleta and Old Navy.

Space executives announced at a financier conference today that both brands have “significant runway in front of them” after increasing sales at Old Navy balanced out declining sales at its Gap and Banana Republic stores.

The business anticipates Old Navy to go beyond $10 billion and Athleta to exceed $1 billion in net sales in the next couple of years, mainly owned by growth in online and mobile channels and a modest U.S. shop expansion.

The choice marks a major shift far from its flagship Space and Banana Republic brand names, where sales have actually stagnated, leaving the retailer burdened an aging fleet of stores exposed to older, struggling shopping center real estate.

Due to the fact that of that, the company will be shifting its focus to where consumers are going shopping, simultaneously increasing its presence in its more lucrative worth and online channels, the company stated this week at the Goldman Sachs 24th Annual International Selling Conference.

“Over the past two years, we’ve made considerable development evolving how we operate – starting with getting fantastic item into the hands of our consumers, more consistently and faster than ever before,” said Art Peck, president and CEO of San Francisco-based Space Inc. “With much of this foundation in location, we’re now moving our focus to growth. We will utilize our renowned brands and significant scale to deliver growth by shifting to where our customers are shopping – online, value and active.”

Those new strategies include a major expansion of its popular Athleta Lady line concentrating on the kids’s athleisure segment, even as its main competitor in the sector, Lululemon, previously this year announced it would be closing all its standalone Ivivva shops by the end of the third quarter.

Over the next 3 years, Gap Inc. anticipates to include about 70 net new stores, with the addition of about 270 Old Navy, Athleta and outlet and factory stores throughout its portfolio. That expansion will be balanced out by closing about 200 of its Space and Banana Republic places.

Through the very first half of this year, Gap Inc. has actually closed 13 Space stores while opening only three. It has actually closed 8 Banana Republic stores while opening three. It has closed only 5 Old Navy shops while opening 13.

Earlier last month, at its quarterly earnings teleconference, Peck hinted that the company was going to strongly lower Gap and Banana Republic’s direct exposure at struggling shopping centers.

“We’re constantly looking at the routing edge of our fleet and the leading edge of our fleet and comprehending what the distinctions are in performance and truly trying to determine locations where we simply should not be at completion of the day and honestly, determine locations where possibly the consumer has actually moved on and we could reposition the shop too,” Peck said.

Space anticipates to lower costs by about $500 million over the next 3 years by leveraging its size and scale, cross-brand synergies and simplifying operations. The company plans to reinvest a portion of the associated savings in its growth initiatives.

Space and Banana Republic very same shop sales have been succumbing to the past couple of years. Gap compensation sales were down 2% in the very first six months of this year, down 3% in the exact same period last year, and down 8% in 2015. Banana Republic sales were down 5%, 10% and 6% in the very same period.

Old Navy sales however, have rebounded comfortably this year, up 6% in 2017 after a 3% decrease in the first half of 2016. This year’s outcomes make Old Navy one of the fastest growing apparel brands in the U.S. The company attributes the turn-around to its “commitment categories,” gowns, pants, knit tops and shorts.

In addition, the company has actually built a rewarding online and mobile service with double-digit sales growth. Space’s online store sites are built on an exclusive e-commerce platform that supports cross-brand shopping, omni-channel services and an approaching buy online, pick-up in store service, in addition to a brand-new ‘personalization engine’ powered by customer information.

The seller operates about 3,200 company-owned stores around the world with about 450 franchise stores, and e-commerce websites.