HONG KONG—Langham Hospitality Group’s new brand offering, Cordis Hotels & Resorts, is swimming against the stream—at least for now—of the deluge of lifestyle products flooding the market.
Cordis will be an upscale brand that stands in stark contrast to recent lifestyle offerings such as Canopy by Hilton, Marriott International’s AC Hotels, and Hyatt Hotels Corporation’s Centric.
While acknowledging the popularity of such lifestyle brands, Langham CEO Bob Warman said there is an opportunity for success of brands that don’t necessarily fit the lifestyle or boutique mold.
“There’s definitely a market for what I call upscale hotels,” he said during a telephone interview with Hotel News Now. “Companies for one reason or another have abandoned the concept of service, and customers have deviated to other markets. We still believe there is strong demand for that market segment as long as you provide a level of service and care, and sophisticated food and beverage.”
There are eight signed deals for Cordis hotels, all in Asia, Warman said. Initially at least, the focus will be on growth in Asia because of the company’s affiliation with that region via it being under the umbrella of Hong Kong-based parent company Great Eagle. The first Cordis-branded hotel will open its doors this year in Hong Kong. Other locations will include five sites in China (two in Shanghai) and one each in Bali, Indonesia,
and Colombo, Sri Lanka. Other global regions, such as in North America, also could be in the cards, he said.
Warman said that during the next five to 10 years, the Cordis brand could grow to between 25 and 30 hotels. “We see Cordis being able to grow significantly larger,” than the company’s Langham brand, of which there are 13.
Development of the brand will be through a mix of new build and conversion, Warman said. The particular route of growth chosen will depend largely on the market.
“In New York City, it would be more difficult to find an appropriate location where you can have a free new build,” he said. “To get into a market like that, it would make sense for us to do a conversion. In China, there’s probably more opportunity to do new build.”
In addition to New York City, other North American destinations for Cordis, which derives its name from the Latin word for “heart,” might be feeder markets such as Orlando, Florida; Miami; and Los Angeles. Also, London could represent a stepping stone to Europe for the company.
“One of the beauties of our company and our parent Great Eagle is we have a keen belief and interest in our brands and have always had a substantial amount of our own capital of real estate."
China growth
China represents a potentially lucrative market for Langham, which owns and operates or lends its brand as a traditional franchisor, and Cordis, Warman said. Through its headquarters in Hong Kong, Langham officials have a front-row seat for Chinese travel trends.
“It would be foolish of us not to look at that,” Warman said of China.
The nation is on course to become a global travel powerhouse, Warman said, and Cordis will be strategically placed to take advantage of the patterns of this group of travelers. This will lead to future Cordis hotels positioned in markets in North America and Europe, where Chinese travelers are likely to go.
“We continue to be bullish,” Warman said. “We see positive movement in China. We think the market is going to continue to grow. It might not grow as fast as it was before, but it will continue to grow.”
… And another brand
Cordis likely won’t be the final brand offering from Langham, Warman said. The company is working on a brand that will fit more closely with lifestyle hotels that cater to the millennial traveler. That brand, which Warman declined to discuss in great detail, will be rolled out this summer.
“We believe it’s an important market for the future,” he said. “In some cases, we feel the product has a limited time scope in trying to understand that market segment. We want to make sure what we do and the concept is sustainable for more than a short period.”