Top hotel management company SBE recently acquired Morgans Hotel Group, which owns boutique properties such as the Hudson Hotel in New York City. Boutique hotels often attract a younger clientele that tends to shy away from larger hotel chains. SBE CEO Sam Nazarian joined the FOX Business Network to discuss the trends he sees in the hotel and hospitality sector.
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“I think the evolution of hospitality, whether it’s now boutique, has turned into lifestyle. Lifestyle has turned into integration of food and beverage, has turned into integration of entertainment,” Nazarian told the FOX Business Network’s Maria Bartiromo.
With SBE’s diverse holdings, Nazarian says it is able to offer its clientele access to restaurants and entertainment they may not otherwise be granted admission to.
“You know, our customers want access. In markets like LA we have 60 properties, we have three hotels, multiple restaurants, nightclubs, we’re in the arenas.”
When it comes to competition from industry disruptor AirBnB, Nazarian said he is not worried because his properties offer consumers a completely different experience.
“From our perspective, our clientele really wants to be part of a community and our hotels in communities are where people come and gather and have dinners and have board meetings and so forth and so on. So Airbnb can’t offer that.”
One trend Nazarian sees in the hotel sector is a shift away from the need to offer numerous amenities in favor of a more aesthetic experience.
“I think limited service is something that’s really a big focus of ours. So, a hotel that doesn’t really have all the amenities, but is really down to the core of a very authentic, community-based, art-based hotel, it’s very design-centric.”