Starwood Strategy for Two Luxury Brands In 2009? Adjust, Adapt, Advance
Paul James, Global Brand Leader for Starwood's two luxury brands -- St Regis & The Luxury Collection - spoke to us recently about how he's dealing with the downturn and looking ahead to the recovery.
A nutshell look at the two brands:
The Luxury Collection has more than 69 hotels in almost 30 countries, among them some of the world's finest: Hotel Danieli in Venice, Hotel Imperial in Vienna and a number of the venerable CIGA hotels.
St. Regis, with the iconic New York property as its standard, is growing rapidly - aiming for 19 locations by end of the year. The brand leans toward superb restaurants, butler service and a residential feel. New properties are on tap in the U.S., Latin America, Asia and the Middle East.
Here are the highlights of our chat with Paul James:
Luxury brands in this climate tend to be focused on the
authenticity of the brand. Where did it come from? Who are its core
customers and what do they do?
The journey for Luxury
Collection and St. Regis is to come back and spend time looking at what
the brands are. Luxury Collection is unique in being a collection where
each hotel is an architectural masterpiece or otherwise uniquely
special because it is a hacienda or a palace. They all celebrate their
locations. We are going back to that core. These are hotels embedded in
their cultures; they are the authorities on their destinations.
On Luxury Collection:
The Luxury Collection web site is being redesigned to focus
on being the "destination authority." "This adds texture," James; "all
of a sudden you are a travel site with a core of incredible hotels."
The site features photography from National Geographic. It highlights
exclusive Destination Discoveries packages designed by concierges;
Epicurean Expeditions for culinary adventures designed by noted chefs
More consistency is being brought to the Luxury Collection; the brand name is now applied to every hotel and there are other consistent experience to help bring the identity. There are now system wide packages such as a "We Invite You To Linger" campaign offering guests complimentary nights based on two, three or four night stays. (The brand is making a $1 donation per room night to support UNICEF's immunization and malaria programs) However we will celebrate that individuality and will not, for example, have the same uniforms in the hotels.
Luxury Collection will be adding properties in Peru; the legendary Turnberry in Scotland will also become a part of the group. Recent additions include the classic Royal Hawaiian, and The Equinox in Vermont.
Because of this focus on the destination, we champion the world of the concierge; all of them are Clefs d'Or concierges and masters of their destination. One of our goals is to bring concierges closer to the customers. When customers call we put them to the concierge.
While many Luxury Collection hotels are historic we can still open something as contemporary as SLS in Hollywood. Even at the St. Regis we had David Rockwell design the very contemporary space for the Ducasse restaurant.
There is an advisory board of 15 travel agents for the luxury brands.
Having luxury hotels with the support of Starwood provides loyalty and the safety of an international company.
On St. Regis:
We have this amazing heritage in New York with St. Regis. Their guests stay there because they feel safe. The St. Regis has been through many recessions. In Europe we have seen a similar rhythm in the economies in hotels like the Danieli in Venice and the Imperial in Vienna. When there is a recovery, these places will be celebrated.
We're seeing different travel patterns. The hotels skewed to corporate meetings are having a harder time. But we are all working to make people realize how important meetings are.
We have to turn around some of the rhetoric that says people are "bad" if they're traveling during these times.
Starwood actually owns a significant number of these hotels. While growth is part of the message, St. Regis will never be a large brand.
St. Regis has more of a defined brand story - why it was a social mecca, food and beverage, the invention of the bloody market, butler service.
"We can't project the end of the recovery," James, "but we look forward to its coming back. Our hotels are no in business for the next six months but for the duration."
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Paul James, Global Brand Leader for Starwood's two luxury brands -- St Regis & The Luxury Collection - spoke to us recently about how he's dealing with the downturn and looking ahead to the recovery.
