Hello dear readers,
the time has come for the first edition of tPH’s hospitality news roundup. In these letters, I share the industry knowledge that has piqued my curiosity as well as other topics of interest.
My goal is to not only relay the information but to add a fresh point of view courtesy of yours truly.
Let’s dive in!
Welcome to The Lobby, a roundup of what’s happening in hospitality, served with a point of view.
In this letter: Soho House goes private (again), Louis Vuitton says no to hotels, Marriott and Hilton prepare for their AI villain arc, and Aman sets sail.
Soho House has been taken private after a five-year, not-so wildly successful stint on the stock market. The share price towards the end was significantly below its IPO valuation. The $2.7 billion deal almost fell through but was saved by a last-minute alternative financing of $200 million. One investor is none other than Ashton Kutcher. The private members club has never been profitable despite a growing number of members, and the question remains if the model lends itself to turning a profit to begin with. More members reduces the core value prop of a curated community. I will be following the company under its new private ownership closely to see if they have noticed an opportunity for a turnaround that at least I have missed. Read more here, here and here.
The evolution of the Soho House stock
There will not be a Louis Vuitton hotel after all. Mr. Arnault himself came out to say that “Vuitton’s not going to go into the hotel business”. The speculation has been abundant, but the LVMH CEO assures that the brand wants to retain its focus and not diversify. Too bad I SWOT analyzed the hypothetical property for EHL Insights literally a week before Arnault squashed the rumors and my LinkedIn still seems to be flooded with people who are convinced that the hotel is, in fact, happening. While there may not be an actual LV hotel, the brand’s stores have leaned into the aesthetic lately. Immersive retail galore!
Marriott and Hilton are getting scared AF about AI. As we know, direct bookings are very important for hotels, as other booking channels such as OTAs can get very expensive and squeeze margins into oblivion. Now some activity has been sniffed in the legal teams of global chains regarding the risks AI could pose for the companies’ cost of sales. While AI is not charging commissions for bookings made through the platform (yet), it does have the potential to become an OTA final boss making Booking.com and Expedia look like Bowser Jr. in contrast.
Serene and silent at sea? Aman is one of the latest luxury hospitality brands to set sail. Loyal to its core, the marketing edge seems to be a) exclusivity with the boat only hosting 47 suites, and b) the unparalleled level of service the brand is known for. The vessel is named Amangati (surely, they must soon run out of names to put after Aman), and its itinerary traces the shores of the Mediterranean. The design
SCREAMSwhispers Aman. A Reddit user articulated what I didn’t dare to: “tbh I would spend the money on a smaller boat for a private charter rather than spend so much for a glorified cruise ship. Who is this even for?”. But the increasing amount of brands rushing into this space, including the Orient Express, there must be serious trust in the model. And please, I would love my skepticism to be proved wrong!
The overarching theme seems to be legacy brands figuring out what they want to be (and whether they can afford to stay as they are). More on that soon. But first, what’s on my nightstand!
A new section! Here I'll share what I'm reading, watching, or listening to; hospitality-related or not. Consider it a peek into what's shaping my thinking.
I’m currently reading Setting the Table by Danny Meyer. I’m slowly but surely working my way through the must reads of hospitality literature (which I feel like there are not that many of? Please correct me if I’m wrong!!!).
After finishing the cult classic Unreasonable Hospitality, I moved on to the adjacent work by Meyer, the former boss of Will Guidara and the brain behind the gift to the world that is Shake Shack (among other very esteemed and iconic dining establishments of his).
I love reading hospitality leaders’ accounts of their successes and failures and what they think makes human care so important.
Other works on my list include:
Kitchen Confidential by Anthony Bourdain
Hospitality Vibes by Maggie Chen
Four Seasons: The Story of a Business Philosophy by Isadore Sharp
Hotel Splendide by Ludwig Bemelmans
The New Gold Standard by Joseph a Michelli
Excellence Wins by Horst Schulzs
Any favorites of yours that I missed? Let me know!
A hotel that has been on my radar.
The premium global affairs and lifestyle magazine Monocle is opening a townhouse in collaboration with Zürich’s iconic boutique hotel Widder, taking a step deeper into hospitality following their successful concept cafés.
The magazine’s ethos of curation and quality lends itself beautiful to lived space that’s filled with bespoke furniture from brands such as Moebe and Olaio. The radio is naturally turned to the wavelengths of Monocle radio and guests enjoy daily housekeeping, round the clock concierge and private dining experiences. Read more.
That’s all for this edition of The Lobby. Thanks for stopping by.
🔑 Emma
quality roundup. subbed.
Thank you for a fun read! I have read some of the books you mentioned and can’t wait to find more of the same.