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Hotel Rooftop Bars Are Tops for Owners, Guests

Hotel rooftop bars are multiplying and becoming popular with patrons and proprietors alike. Does this trend have staying power?
HNN columnist
May 14, 2015 | 3:57 P.M.

Great restaurants and memorable bars have long been an essential part of the mystique for many successful hotels. In the last 10 years or so, hotel owners and operators have gotten more creative, and traditional restaurant and bar features have evolved in some intriguing new directions.
 
As it turns out, one of those directions is up—all the way up. In the span of a few short years, rooftop bars have become one of the hottest and most impactful hotel amenity trends in the industry.
 
Rooftop bars used to be a niche idea, applicable only in year-round, warm-weather regions, thus limiting their application. What is really remarkable about the explosion in rooftop bars in the last six or seven years is the degree to which they appear to transcend market-specific considerations.
 
In Chicago, TheWit is justifiably lauded for its popular rooftop bar—one of the first in the Chicago market, along with rooftop bars at the Dana Hotel & Spa and the Trump International Hotel that opened around the same time—which has emerged as an iconic example of the concept. Outside observers might find it surprising that rooftops bars are worth the investment in a city like Chicago, where the climate can place significant limitations on rooftop bar design and usage for several months out of the year. The fact that rooftop bars are becoming ubiquitous even in cold-weather markets like the Windy City speaks to the attractiveness of the space.
 
Popular and profitable
So why are rooftop bars trending so dramatically these days? 
 
The short answer is that they are both popular and profitable. A big part of the appeal from the standpoint of a hotel developer or manager is that the beverage-to-food mix is slanted so much toward beverage that a busy rooftop bar can be an enormously effective revenue-generating entity. Keep in mind that a rooftop used to just be a rooftop—a wasted space. When you can transform that blank canvas into a space with serious income potential, it is a no-brainer to make that happen. 
 
From the standpoint of hotel guests and bar patrons, the admiration of the rooftop bar concept can be attributed to several traits. One of those is the fairly obvious appeal of an outdoor bar as a great destination: a place where potentially spectacular views and a unique environment promise something out of the ordinary. Rooftop bars are ideal for private parties, casual drinks and special events.. This versatility gives a great rooftop bar a diverse appeal, from the mid-afternoon and after-work crowd to a late-night audience of partygoers.
 
Nuts and bolts
One of the caveats with the rooftop bar concept is that you have to have the right building for it; not every building lends itself to a rooftop entertainment feature. The trouble with retrofitting a building is that rooftops were/are frequently used to house heating, ventilation and air conditioning equipment and other systems, and it can be prohibitively expensive and logistically daunting to remedy that situation. 
 
A critical key to success with rooftop bars is to designate a dedicated elevator. This is both a practical consideration (you do not want to congest the hotel elevator or frustrate people waiting to get to and from the rooftop area) and a great way to convey a sense of drama and exclusivity to the space. A dedicated elevator subtly conveys the message that this is an important and desirable place to be.
 
When it comes to the dining components, some rooftop bars may actually be part of a full restaurant feature that transitions to a bar area, but many have a small “show kitchen” or a specially designed facility that can prepare a limited menu.
 
Mojo rising
Perhaps the single most important piece of advice for any hotel owner or operator looking to open a successful rooftop bar is to remember that it is all about the environment. 
 
For a rooftop bar to be successful, you need the right aesthetics, lighting and people. It is just like any aspect of the bar business: Ambience is critical. A common mistake is to simply open a bar on a roof and assume the magic will just “happen.” 
 
But all great bars, rooftop or ground level, have to be designed and run well, and they all need a vibe, a personality, a memorable and defining sense of place. This mojo is what distinguishes the industry leaders from the also-rans. Consequently, it pays—both literally and figuratively—to work with a bar designer who specializes in rooftop concepts. Any competent architect or designer can design an attractive space, but one who specializes in rooftop bars will be more likely to create something unique.
 
Staying power?
One issue to watch going forward is if newly built rooftop bars start cannibalizing some of each other’s business. The sense of something new, different and exciting cannot last forever, and it is legitimate to consider whether rooftop bars will lose some momentum once they stop being “unusual.”
 
The million-dollar question is if this is a trend or whether it has staying power. The bar business can be that way: Everyone jumps on the latest trend, only to shift to the Next Big Thing. I see this as more of a seismic shift, a new and different form of an entertainment venue to which owners and consumers are both attracted. The economics make sense. The appeal to consumers seems unlikely to ebb. Because, at its core, the bar business is about emotion—about putting people at ease, appealing to them, and creating a comfortable, convivial and engaging place to spend time. 
 
In other words, while a drink is a drink, the rooftop bar is all about the scene. A great rooftop bar is a unique venue that can make guests and patrons feel like they are literally on top of the world.
 
Robert Habeeb is president and CEO of First Hospitality Group, Inc., a national, experienced, and established hospitality management and development company serving the investment and real estate industries. Since 1985, FHG has been an award-winning pioneer in the hospitality industry. FHG has successfully developed, marketed and managed more than 16 brands and 50 properties throughout the Midwest. Visit www.fhginc.com.
 
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