LONDON—In its 32 years since being founded by hotelier Adrian Zecha, Aman Group has gained legions of aficionados—known as “Amanjunkies”—with only one brand, the eponymously named Aman.
Now, the hotel group looks to build on that fan base with the launch of a new brand, Janu.
One question, according to sources, is whether the parent company has sufficient white space to bring in a second brand without diluting what it is about the hotel firm that make guests devoted to it.
The new brand is being launched with the Janu Sveti Stefan, property on the Montenegrin mainland opposite the island of Sveti Stefan, on which Aman already has a resort. That is to open in 2022, as are two other resorts bearing the Janu name, in Tokyo and Al Ula in northwest Saudi Arabia, close to heritage sites and the Holy City of Medina.
The Aman brand has 32 resorts, with a pipeline including Mexico, Japan and New York City.
Roland Fasel, Aman’s COO and once the GM of London’s The Dorchester, does see sufficient white space in which to operate Janu.
“Aman has been at the forefront of hospitality for over 30 years, and always had an incredibly close connection with its guests. Through listening, and then talking with our guests and other professionals in the industry, we realized that there is a gap in the market for a different take on hospitality and travel experiences,” Fasel told Hotel News Now.
“Janu shares its DNA with its legendary elder sister in the form of total commitment to its guests, deep roots in destination, exemplary and timeless design and unparalleled service. Both brands will be mutually beneficial, and together they offer a total solution for the fluctuating needs and desires of today’s global travel cognoscenti,” he said.
Outside skepticism
Piers Schmidt, founder at hotel consultancy Luxury Branding, said Aman’s new brand launch is understandable as a development play.
“I will judge them on the proof of their pudding, but I wonder if there is enough clear water. The strategy is a fair one, but I fear it from the market side,” he said.
He said the launch must also be contemplated from the ownership side.
“Aman is looking for growth. This is the hideous specter in the room when you are a business owned by a shareholder with not an unreasonable expectation for his investment. The job of the CEO is to mediate the demands between the consumer market and investors who put their money into that business,” he said.
“There also is the wonderful psychological idea as to whether these über-brands can be part of those commercial growth stories. Brands like Aman, Rolls Royce? Can they be what we love them for when there is growth imperative? Will this kill the goose that lays the golden egg? The shareholder will say ‘I paid handsomely for this thing, this precious gift, but there are not enough eggs. This is not what I paid for to buy the goose farm,’” Schmidt said.
Liv Gussing Burgess, founder of luxury hospitality advisor Luxury Hospitality Consulting, and who worked for Aman for 14 years until 2011, said a more strategic approach would be to continue to focus on developing and expanding the Aman brand as opposed to venturing into new territory.
Management flexibility
Aman executives see an appropriate gap in the market, which they think loyal guests will help fill.
Fasel said Janu offers an “energetic vibe seeking greater purpose with inner contentment,” noting “genuine human interaction, playful expression and social wellness are at (its) core.” The brand appeals to guests who wish to detox from a digital planet, albeit at luxury average daily rates, he said.
“People have lost the art of interaction and conversation. Janu offers guests the ‘best of both worlds. … We want to kick-start human interaction again,” he said.
Fasel added assets in markets already with an Aman hotel will likely be branded Janu, but the announcement of the Saudi property shows the brand is open to being in completely new markets.
“We do expect Amanjunkies to be a guest of Janu. It would be like staying with another member of their family for a different experience, familiar but different. It depends if they want more of a tranquil hideaway, or something more social,” Fasel said.
Gussing Burgess and Schmidt both question if Aman has the management flexibility to make the new venture pay off.
“In my view, the challenge will be for Janu to articulate clear brand pillars that set it apart from Aman, as well as create its own unique identity in the market. How that translates into a business model remains to be seen, as the communal experience component that is being described at Janu will still require high number of service staff,” Gussing Burgess said.
Schmidt said Aman’s decision to diversify its portfolio “is a legitimate strategy, and that is what Marriott (International), Accor, Hilton, Hyatt (Hotels Corporation) do, but Aman is not those companies.”
“It will be the same people running (Janu). This is the problem; you get spill,” he said. “What you really need is some form of competition (among Aman management), and of course they cannot afford that. They are leveraging everything across two brands, asking people to be Aman in the morning, Janu in the afternoon. How can they do that and not dilute their management team?” he said.
Über-ADR
The white space Aman is playing in, sources said, is one of rarified air.
Schmidt said others have tried to find and fill it, but without success.
“Four Seasons thrashed the market in every way to find white space, but at the end of day they concluded it would remain a mono brand. So how does (Aman) execute this, two brands?” he said.
He added an Aman hotel, whether it is Aman or Janu, still requires a specific quality of design, the right location, the right architect and a certain cost per key.
“It has had a long history of making no money. Costs are even too high for stellar ADRs to grow these things, and there are very few people who are its guest,” Schmidt said.
He also questioned whether the firm’s loyal guests would follow it to a second brand.
“They might see it as Aman-light,” he said.
Gussing Burgess said that while Janu is being launched as a separate brand, its website connects it to Aman.
“This can go either way depending on how successful they are in delivering,” she said.
Schmidt added Janu is not being marketed or branded as “Janu by Aman.”
“The ‘by’ branding is a mid-market thing. Aman with Janu is trying to get separation, but I wonder if there is separation,” he said.
“But they have launched the brand with a pipeline. They’ve persuaded three developers, so that is good,” Schmidt added.