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September 30, 2024

The Independent Hotel: Carving out a niche

EDC

A changing mindset

Independent hotels appeal to travelers seeking a departure from the uniform offerings of brands and chains. 

Accounting for approximately 40% of the USA’s five million hotel rooms1, independents are better positioned to provide personalized service, reflecting the culture and ethos of a destination and creating a more authentic travel experience.  

While chains provide familiarity and consistency, independent accommodations provide a unique experience - particularly appealing to the ever-growing Millennial and Gen Z markets who are increasingly challenging convention, seeking an immersive, instagrammable experience.

While much of the shift in traveler expectations can be attributed to the younger generations' mindset, the arrival — and subsequent huge growth —  of Airbnb has been just as influential.

Airbnb has not just introduced competition to the hospitality industry, it’s shaped the way we think about travel.

One of Airbnb’s key selling points is the promise of “living like a local.” Travelers are drawn to properties that offer a deeper connection to local culture, neighborhoods, and communities. And of course, Airbnb offers that big ticket home-away-from-home environment, providing a more personal and intimate travel experience.

Airbnb - dream or nightmare?

Airbnb ticks a number of boxes, but it does have its drawbacks.

Unlike the standardized services of hotels, Airbnb listings can vary greatly in terms of cleanliness, quality, and experience. This inconsistency can be unsettling, and is compounded by limited recourse to address issues with the host during a stay — with multiple reports of complicated and laborious post-stay escalation via AirBnb.

Other issues include narrow check-in windows, and variable security standards. And if the host — and this is a common requirement in an Airbnb property — asks you to keep the place tidy, take out the trash, and ensure the bed linen is placed in a neat pile at the end of the stay (….Oh, and please don’t forget to read the extensive list of house rules…), is this still ‘hospitality’ as we know it?! 

To what extent is the guest willing to sacrifice good old fashioned service, in favor of a unique experience?

Carving out a niche...

This is where the true value of the independent hotel shines bright — carving out a niche and serving the middle ground between an inconsistent Airbnb experience and the uniformity of a chain hotel. Free from the obligations and shackles of brand standards, the independent hotel can offer both experiential travel, and the services, amenities, and security of a hotel. The Independent is also agile, able to quickly adapt to, and cater for local events, preferences, and market trends, providing personalized services that resonate with local communities.

Big chains go local?

This is a significant challenge for chains looking to compete on a local level with the independent hotel market. And recognising Airbnb’s influence in line with the shifting mindset of today’s traveler, it’s a challenge they must embrace if they’re to remain competitive.

Naturally, this is happening! Blessed with financial muscle, scope and size, the world’s hotel giants are going big on the experience over stay concept — commonly referred to as the lifestyle hotel.

Morgan's Hotel, New York - The world's first boutique hotel experience

The lifestyle hotel

Interestingly, the lifestyle hotel is not a new concept. It was first explored in 1984 at Morgans Hotel, New York City. Conceived by visionary hotelier Ian Schrager and his late business partner Steve Rubell, Morgans was more than just a place to stay—it was a cultural statement, marrying design, service, and social experience in a way the hospitality industry had not seen before.

Schrager and Rubell (already famous for the legendary Studio 54 nightclub) understood the power of creating atmospheres that appealed to human emotions. They saw an untapped potential in the hotel market—accommodations that went beyond utility and delved into a lifestyle experience.

Fast forward forty years, and this 'new' breed of hotel is ubiquitous. Lifestyle hotel brands are flooding the market, as the world's biggest hoteliers attempt to entice the experiential traveller. The pursuit of this lucrative guest's dollars has birthed multiple lifestyle concepts, with each brand striving to differentiate themselves by varying their focus on ‘individual’ elements such as design, social interaction, and vibe.

Brand proliferation

Examples include:

W Hotels - Focus on luxury with a vibrant social scene, blending bold design with nightlife, fashion, and music.

Moxy - Emphasize communal spaces and ‘Instagrammable design elements,’ fostering a fun and laid-back atmosphere.

Edition - Sophisticated and exclusive, offering minimalist luxury and a curated guest experience.

Mama Shelter -Known for its vibrant, quirky design, with a mix of retro and contemporary styles. 

​AC Hotels - European-inspired design with a minimalist, sophisticated feel.

Hyatt Centric - Provide ‘a local home base in the middle of the action’ and creative, collaborative spaces.

Moxy's lifestyle concept - eclectic, cool, colorful., communal...

Other prominent chains include: Soho House, Tribe,  Curio Collection, Hotel Indigo, Jo & Joe, Motto, the Tapestry Collection, Kimpton, YOTEL, citizenM, and voco.

Keeping it real...

Such is the ubiquity of lifestyle brands, that today's traveler is just as likely to encounter this type of hotel than the traditional cookie-cutter chain property, especially in urban centers and popular tourist destinations. With this in mind, is there a danger that the overarching quest for uniqueness is being diluted? Are lifestyle hotels simply a different type of experience, rather than a unique experience?

Perhaps most appropriately, and returning back to this article's introduction, can a big brand genuinely replicate an experience provided by an independent hotel? 

A core exploratory factor lies in the sincerity of this experience. While lifestyle brands can certainly offer immersive experiences and stylish surroundings, the fact remains that they still operate under the umbrella of corporate oversight. This may inherently limit their ability to be as flexible and responsive as independent properties, especially when it comes to personalized service and community engagement.

Lifestyle hotels don’t necessarily lack authenticity, but their efforts to offer a truly local experience are perhaps more calculated and curated, whereas independent properties are more likely to embody the essence of their location in a natural and organic way.

There’s no right or wrong answer here. A lifestyle hotel's lack of true authenticity won’t be a problem for travelers seeking a design-forward, immersive environment, but still want the reliability and perks of a global hotel group. As with all things in life, it all comes down to personal preference.

TV, just like at home...

Where do ROOMNET stand in the great independent vs lifestyle hotel debate?!

Well, we're lucky enough to work with both types of property, however recognise that in the rapidly evolving world of technology, flexibility is critical. And this is bad news for brand standards, which typically equate to expedited technological obsolescence, reduced flexibility, and more complicated adoption of new technologies.

This is especially of concern for lifestyle hotels and their young, tech-obsessed demographic. Indeed, advanced technology is a key pillar in the ethos of several lifestyle brands — notable examples being citizenM, YOTEL, and Aloft.

Whether the property is independent or lifestyle, the hotelier strives to create a stay that feels less transactional, and more like visiting a familiar place. This must go beyond look, feel, and vibe, and must be represented in the technology....

To find out how ROOMNET provide the hospitality industry's onlyhome-away-from-home guest room TV experience, book an online demo here.

1, statista.com

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