|Ian Schrager's looking to create not 1, but 2 hotel brands (and Edition doesn't count).|
Wednesday, 27th October 2010
Source : Andrew Calvo ~ Passions Of A Zealot
A few weeks back, USAToday's Barbara De Lollis mentioned that she would be sitting down with Ian Schrager and seeing what he’s up too, so I asked her if she was going to get some details on his new brands that he was supposedly creating – not including his joint venture project with Marriott....
Fortunately – she replied “yes!” And I’ve been eagerly awaiting her story on it since.
Today, she posted a story giving some details – not too many though – in fact many details aren’t even set in stone by Schrager himself.. But in a nutshell, he’s looking to create two new hotel brands, kinda like Morgans Hotel Group Pt II; a high end brand, and a low end brand.
Not surprisingly, the article states that neither of the brands will be considered competition to the Edition brand – but surprisingly he considers Edition a mid-tier hotel brand, whereas I always considered it pretty high-end luxury.
In fact, he states:
How would this compare to an Edition hotel, if hypothetically, one were to open in the same city? In the case the Ambassador East hotel, it would be the cheaper of the two, he said.
The first hotel will be the former Ambassador East in Chicago which Schrager purchased in April of this year with the intention of gutting it and putting his own name on it, instead of Edition as most expected.
Schrager’s idea of low priced boutique hotel may still be out most people’s budget, personally, I think low-priced boutique hotels would be in the range of $150-200, but Schrager is expecting the Ambassador East to average $225 a night.
The article also goes to mention that the company will grow slowly and look to purchase older, worn out hotels that haven’t been put to their full use in years. (I can think of one hotel which would be a great purchase – the Berkeley Carteret in Asbury Park – that would fit that criteria to the T).
Schrager isn’t out to re-prove himself, he’s done it already, I think he wants to create these brands, and these properties because he wants to and he feels there is a need to be filled. I think if Schrager can make a boutique brand at a low price point, it will really turn the boutique hotel industry on its head.
Going back to the comment about purchasing older, worn out hotels; I can almost picture it now: Ian Schrager as the Statue of Liberty “give me your tired, your poor……”
Andrew Calvo is a Commercial Real Estate Advisor in New Jersey. I live in Tinton Falls, NJ. This blog is about my passions - primarily hotels, commercial real estate, and development, etc.
Since I have been in High School I've had numerous jobs, but the field which has always interested me is Real Estate, Hotel Development and Construction. I consider myself a zealot in that area - I try to absorb as much as I possibly can, take the experiences that I learn, or read about and use them in my life.