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Small Boutique Hotels Key In on Personalization To Counter Lack of Scale

Management Workload a Challenge for Some Boutique Properties

The 40-room Skyline Lodge opened in Highlands, North Carolina, on July 6. (The Indigo Road Hospitality Group)
The 40-room Skyline Lodge opened in Highlands, North Carolina, on July 6. (The Indigo Road Hospitality Group)

(Corrected on July 29 to clarify when Chapter House will open in the 15th paragraph.)

Smaller hotels that naturally have lower staffing levels can leave a lasting impression on guests from an experience perspective, but they also require general managers to wear many hats.

Larry Spelts, president of The Indigo Road Hospitality Group's lodging and lifestyles adventures division, said he started his career in small independent hotels in Charleston, South Carolina, and went into management at a 41-room hotel. He's spent most of his career at small independent properties.

"What I love about them is ... the opportunity to really tailor and customize experiences for guests and really focus on each individual guest in a way that ... is usually economically prohibitive in a larger property to do that, because you would have to have so much staff," he said.

One of the benefits of having a larger property is economies of scale and being able to serve more guests with almost the same number of staff as a smaller hotel, but those larger properties can't offer as unique of an experience, he said.

"You don't really have the opportunity to spend a lot of time with guests at larger properties unless they have an army of staff," he said.

One of The Indigo Road's small-room-count properties that opened this month is the 40-key Skyline Lodge in Highlands, North Carolina, known for being more of a resort/vacation town in the mountains. The 1930s-era lodge designed by a student of Frank Lloyd Wright sits atop at 3,700-foot-tall mountain.

Spelts gave an example of how the lodge was able to offer a unique experience to guests in the first weekend it was open.

"A young man checking in with his girlfriend shared with us that he was going to propose to her while they were visiting Highlands," Spelts said. "The whole team got super excited."

The staff walked the guest around to show him a granite stone balcony on the backside of the hotel's restaurant that would be a good place for the proposal. They helped him plan the moment and got his girlfriend over to the spot without her knowing about it.

"It's just one of those really cool things that happens at a really small property where it's a high staff-to-guest ratio, things move a little slower and you can make magic," he said.

Small Hotel Challenges

While there are a lot of perks to being a smaller-key property, Spelts said there are also challenges, especially for management teams for smaller hotels.

"Smaller properties don't have the luxury of having every functional discipline needed to be represented to operate a larger hotel. You don't have the luxury of having all of those roles because you just can't afford them," he said. "The result is that the general manager wears a lot of hats."

For the first three small hotels Spelts managed, he served as the HR executive, the senior marketing executive, the chief engineer and more.

"It can be exhausting to be the general manager of a small property, because you're just not going to have the fully well-rounded team of all the functional disciplines required or needed," he said. "You have to be a generalist, and you have to be able to do a lot of things. That's probably the biggest challenge."

Cape Cod Hotels

Baxter Hospitality has two small room count properties — Sesuit Harbor House and Chapter House — both of which are 21 rooms, said Phil Baxter, principle at Baxter Hospitality, in an email interview. Sesuit Harbor House is open and Chapter House will open this fall.

While the hotels have a small room count, he said they offer a lot of lawn space "for outdoor gatherings around our fire pits, and picnic areas lend themselves to spaces for guests to make connections not only with the people they are traveling with but other guests as well."

Baxter Hospitality's hotels also focus on offering unique experiences.

"Curating bespoke experiences such as the Fairy Gardens and Afternoon Tea for kids at Sesuit Harbor House, or the grill areas outside are just as important to us as it is to offer unbelievable guest rooms," he said. "We have put great attention to detail into offering programs that connect our guests, and it’s the intimate size of our inns that have really allowed us to facilitate the programs and connections thoughtfully.”

Baxter said both hotels are housed in historic homes from the 1700s in Cape Cod.

"Our team has dedicated time into thoughtfully renovating both properties to seamlessly blend the original detailing and touches of the homes with the contemporary amenities and services of a modern resort," he said. "Inside, our guestrooms have a classic Cape Cod beach feel, offering a warm residential setting with a sense of place.”

The Hudson Whaler

The 16-room Hudson Whaler hotel has maritime-inspired decor to reflect Hudson, New York's history, said Michael Glickman, who co-owns the hotel, in an email interview. The hotel also has three sister properties within walking distance: The Nest, The Nautical Nest and The Hudson Mariner.

Like Baxter's hotels, the size of The Hudson Whaler allows guests to meet and interact in the lobby, outdoor courtyard or in the halls of the hotel.

The hotel's lobby is "open with lots of seating for guests to relax or exchange stories on their trip," Glickman said. "On the weekdays, we’ve seen many guests gather and work from the lobby in the morning. It’s a very communal space, presenting the opportunity for visitors to get to know one and other.”

Ben Rinzler, co-owner of The Hudson Whaler, said via email the design of the hotel "reflects the character of Hudson with a commitment to showcasing original details, as well as local artists and materials, including the crystal chandeliers sourced from one of Warren Street's antique shops, Ida's Eye, just across the street from the hotel."

"Our lobby also evokes a feeling that one has walked into the living room of a ship captain with visitors greeted by a display of ornate custom woodwork, including the original handcrafted, three-level staircase and a new custom fireplace created by a master carpenter," he said.

He added the hotel also has in-room amenities such as "a curated refrigerator stocked with locally sourced beverages and snacks, including a complimentary handmade chocolate whale, crafted by our local chocolatier, Vasilow's Confectionery.”