Swire Hotels has plans to expand its brand The House Collective to such destinations as Tokyo and Shenzhen Bay, China.
Described as “a group of refined, highly individual properties that defy comparison,” The House Collective currently comprises four hotels in China and Hong Kong.
Its first property, The Opposite Hotel in Beijing, opened in 2008 and was followed by The Upper House in Hong Kong; The Temple House in Chengdu, China; and The Middle House in Shanghai.
Swire Hotels’ Managing Director Dean Winter said each property is characterized by unique architectural and cultural traits particular to its location, such as the prominent art scene in Beijing, high fashion in Shanghai, tea and tranquility in Chengdu and Hong Kong’s neon lights.
Swire also owns another brand, East, with three hotels in Beijing, Hong Kong and Miami that are categorized as “business hotels with lifestyle elements.”
East started as a business-hotel brand and over its history has introduced lifestyle components.
Winter said the brand is designed to create a balance between work and lifestyle and vibrancy and energy.
Its name is symbolic of the sun rising with new ideas and new energy, he said. Guests are typically between 25 to 35, mobile and associated with the digital industries.
House Away From House
The House Collective also is looking to expand out of China.
In July, Swire announced its first international hotel affiliated with The House Collective, a collaboration between Greenwich, Connecticut-based L Catterton Real Estate and Tokyu Corporation and Tokyu Department Store, both under the umbrella of the Tokyu Group.
Set in the neighborhood of Shibuya, the as-yet unnamed property is targeted for completion in 2027.
As a sign of faith in the brand, the management agreement was sealed before the partners even had the opportunity to experience the brand in Hong Kong. Negotiations were completed on Zoom during the COVID-19 pandemic when travel was very limited.
“What it demonstrates is that developers are looking for something that is a departure from the more established vanilla luxury which is so prevalent. … I think our outlook is really bright,” Winter said.
This announcement was followed in August by another milestone — a hotel management agreement with a privately held property developer to operate a House Collective property in the heart of Shenzhen Bay, China.
Due to open in 2025 with 115 rooms and 44 serviced residences, the hotel is part of a premium mixed-use development with offices and events and exhibition space designed by architectural house Büro Ole Scheeren, which has a studio in Hong Kong.
“The location is a special part of the city, out of the traditional central business district and close to the border crossing with Hong Kong. It is strategically located in a catchment area. We have been very, very fortunate,” Winter said.
According to Winter, names for both pipeline properties will be announced 12 months before opening, as is typical for the brand.
Work is currently in progress on design and restaurant concepts.
“We have been very, very invested in the domestic market during COVID. Last year was fantastic … particularly in Chengdu and Shanghai,” Winter said.
He added he expects international visitors from Europe and the U.S. to be slower to return to China.
“The pandemic has made us focused on the domestic market in a way that we haven’t done before. It has forced us to find new travel relationships, which we have done, and it has been very rewarding,” he said.
Winter said The House Collective appeals to discerning Chinese guests who have traveled widely outside of China.
“Aged around 35, this group had to look for interesting alternatives in China, and that’s where we come in. They don’t want to stay in traditional luxury brands,” he said.
In Hong Kong, staycations constituted a significant amount of business during the pandemic, but for most guests that comprised one trip, he said.
Winter is optimistic business will grow when travel restrictions fully end in Hong Kong.
Mandatory hotel quarantine for overseas arrivals ended in late September. On Nov. 17, travel requirements were further relaxed.
Bright Future
Winter said Swire Hotels' parent company Swire Properties has a fund valued at 100 billion Hong Kong dollars ($12.76 billion) to fund all its development interests, including strategically developing hotels and investing in key cities in China over the next 10 years.
The focus will be on retail-led mixed-use developments in Tier-1 cities and emerging Tier-1 cities, with the predominant target being mainland China.
“There will be more announcements in the first half of next year. … China is still very much a strong focus for Swire,” he said.
Southeast Asia, South Korea and Australia also are on the map for the development company and hotel brands.
Winter said the U.S. is an important market for the group, too.
He added the group “needs a sibling or two, particularly where Cathay Pacific flies. … California and the West Coast would be a major destination.”
Growth will be handled in a “measured, strategic manner,” Winter said, with the aim to add 20 hotels for both brands by 2030.
“It’s about working with the right developers. We have been a little bit spoiled to be owned by an amazing 150-year-old group,” he said, referring to the origins of John Swire & Sons, which first started trading in Hong Kong in 1870.
“We have to be very careful, and future developments need to have the same alignment,” he said.