SH Hotels & Resorts has a strong pipeline of new projects, including a handful of openings this year, which are designed to appeal to guests who are seeking out experiences, CEO Raul Leal said.
In a video interview with Hotel News Now at the Americas Lodging Investment Summit, Leal said his company opened its 220-room 1 Hotel Nashville and the long-awaited 1 Hotel San Francisco in 2022. The San Francisco property was a conversion from the Hotel Vitale, and the rebranding had been slowed by the COVID-19 pandemic, he said.
“But we just reopened in July very successfully,” he said. “It’s been really well-received in that market.”
SH Hotels & Resorts is a hotel management affiliate of private investment firm Starwood Capital Group, and operates the 1 Hotels, Baccarat Hotels, Treehouse Hotels and SH Collection brands.
The company's executives are also excited about projects such as the 1 Hotel Hanalei Bay in Kauai, Hawaii, which is scheduled to open this month, and a renovation of the former St. Regis Princeville Resort. The sustainability-minded hotel will have a spa, wellness offerings, restaurants and new pool areas.
In the United Kingdom, SH Hotels has two properties set to open this year. The first is the Manchester Treehouse Hotel that will open in the heart of Manchester. The next is the 1 Hotel London, Mayfair near Green Park.
The Baccarat Hotel New York is the only Baccarat Hotels property currently in operation, but it has several projects in the pipeline in the U.S. and international locations. The 1 Hotel brand is the company’s fastest-growing brand.
“We intend to grow all the all the brands in different markets around the world,” Leal said, adding that SH Hotels owns some of the hotels, while others it will manage for other owners. “We’ll be significantly represented in the U.S., certainly in Europe and the Middle East, and now starting to be represented in the Pacific as well.”
As the company looks to further grow its portfolio, he said, it will consider both conversions and new-build projects based on market conditions.
“We're really showing no signs of slowing down at this point, in our segments particularly,” he said. “There may be some softening of the middle markets, perhaps, but in the upscale and resort and luxury segment, I think we’ll continue fairly strong for 2023 and beyond.”
Customers are drifting away from the commoditized brands, not just in hotels but in general, Leal said. SH Hotels’ brands each provide a different experience that meet their guests’ preferences. The brands cater to different demographics, but they’re all about that experience with heavy programming and food and beverage offerings.
It’s about anticipating what guests want as well as giving them the opportunity to share what they’re looking for, he said. Hotels then need to deliver on that.
SH Hotels has sophisticated technology that allows it to capture those preferences, he said. Last year, it partnered with a software vendor to better understand guests want during their stays.
“When they’re on property, we can deliver those services seamlessly and adapt the experience to those preferences,” he said.