Showing posts with label Starwood. Show all posts
Showing posts with label Starwood. Show all posts

Sunday, January 12, 2014

"Oh an idea? But it is so rare!"

That an idea is rare was Einstein's insightful reply when asked by Paul Valéry how he kept track of his brilliant reflections.

In a world where the noisy stream of 140-character mental spurts makes it sometimes nearly impossible to keep track of our own thoughts, it is humbling to be reminded of the true value of a transformational notion by one of the most prolific thinkers in history. Einstein's capacity to visualize very complex systems was coupled with an equally astounding ability to direct his mind like an arrow to the core of every problem he dealt with. While many of his colleagues spent their time seeking answers in experimental data, he pierced through the knowledge continuum of his own time as his ideas rippled through history.

Reading the news about Angela Ahrendts move from Burberry to Apple, I can't stop thinking about the importance of her own ideas, in particular when confronted with a task as momentous as leading the retail empire of one of the most exciting businesses of our time.


Ms. Ahrendts had a stellar run at the luxury fashion powerhouse. She successfully steered the brand into a realm connecting consumers, markets and society. She warped the digital-physical consumer universe and had an early perception that our time is one where the "experience of shopping" has more strategic significance than any product-store-website system. The true buying decision that matters today is when a consumer decides to spend his money in a product not because he needs it more than something else but because the act of owning that product is more than the sum of buying and using it.

And now Ms. Ahrendts finds herself in the best place to leverage her vision. Apple already offers a very integrated experience: the products are simultaneously tools for work and play, they seamlessly integrate with one another, they transcend generations, they include an independently generated market of content that continuously improves the product. Most interestingly, Apple products break the barrier between being used by their owners and being an extension of their desires, the fundamental motivation for all human action. 

The focus of my work being the physical place, I always look at how the design of a public space impacts what is happening there: retail design must contribute to increase sales, hotel design must contribute to human comfort, restaurant design must generate leisurely enjoyment, a cultural space must trigger curiosity .... Creating the conditions for a successful and perpetuating business is at the heart of design: the investment in creating a space must contribute to higher revenue, it must trigger repeat business and make it desirable and a competitive destination for consumers.

Steve Jobs' vision generated products that compete across all categories. Until the i-devices came along I would reasonably know how much of my budget would be spent on clothes or leisure versus technology - but it is fascinating how the i-products have the ability to displace spending from other categories. They compete with fashion, accessories, travel and leisure. Apple competes with Burberry and with Uniqlo. It competes with Montblanc. It competes with Louis Vuitton. It competes with Bang&Olufsen. It competes with Daniel Boulud. It competes with Starwood. It competes with MoMA.





So for all the skeptics about Ms. Ahrendts appointment and her lack of experience in technology, nothing but a very narrow view of what Apple is can explain their doubts. 

I am looking forward to seeing how the Cook/Ive/Ahrendts triumvirate will refine the Apple experience. I have no doubt the company will go through an exciting time and it's going to be about far more than just changes in retail strategy. Market analysts worried about flattening sales growth across the Apple retail system will be looking for innovative ideas to spur revenue acceleration. My thought however is that initially most of her impact will be subtle and subliminal. She will strengthen the backbone of the customer experience, she will galvanize the staff network and will leverage the connection that already exists between customer and product to stimulate further sales. Customers already know their Apple products. What they now want is for their Apple products to know them better. This will eventually lead to changes in the physical appearance of the stores but those will result from a strategy based on the invigoration of the core bond between customers and products.

If I had to speculate about what we will see?
  • I look forward to a time when Apple geniuses know my purchase history upon entering the store and have the ability to glean my app-buying trends to converge their service toward the kind of customer I am: whether I am a music lover eager to see the newer sound systems, or a graphics specialist interested in higher performance displays - pretty much the same way the waiters at the corner restaurant know my favorite dish. Amazon has a simple on-screen helpdesk - a mere digital iteration of a 1-800 number- but I envision Apple will create instead a tech/lifestyle concierge to help with shopping as well as making the product use as enjoyable as possible.
  • The experience of buying technology is still daunting for many, but if Steve Jobs was able to conceive a phone with only one button, then the convergence of consumer technology to a single device is very likely. There are still risks of disruption from some competitors: Samsung has big screens to get consumers attention, Sony has a large entertainment archive, Microsoft has software that a majority of consumers trusts and knows - and they all want to leverage these strengths in their retail offering. Apple has the unique ability to make tech-retail a leisure destination. The stores need to continue the effort to make customers feel like they are part of a community rather than going to a place that showcases, assists and sells.
  • Culture is also in the process of becoming a digital experience and museums know that to attract a younger generation they need to be connected and interactive. Apple has immense opportunities to explore that connection and create educational and inspirational moments in its stores in a similar way to how Burberry triggered an unexpected whimsical artistic vibe with Acoustic, displacing customer time spent on itunes, youtube and facebook.


Burberry's Acoustic web page featuring a curated selection of musicians


When reminded of Einstein's focus on the importance of a true idea, I see that Apple created a vortex that projects digital interaction into the future and Angela Ahrendts has the opportunity to frame it within a lifestyle ethos. I believe she is the inflection point that will turn Apple's customers into Apple's guests.



Wednesday, October 17, 2012

Do historic hotels dream about their past? Some thoughts on the renovation of iconic properties.

Hilton Worldwide, owner of the historic Waldorf Astoria hotel in New York city has begun a phased upgrade and much needed renovation of the crown-jewel in its portfolio. This iconic hotel is not only the quintessential urban luxury hotel, but it is also the flagship property of the company's luxury brand.





On the tail-end of a recession that hit the luxury segment particularly hard, hospitality executives have worked hard to re-tool and compete in a market that has blurred the lines between luxury, lifestyle and boutique. Defining a clear vision for the luxury experience and communicating a compelling brand narrative have become the keystones of renovations, especially when the buildings carry such weight.

The plan to bring the Waldorf Astoria into the 21st century has been carefully considered, and will be implemented over the course of years to come. The Park Avenue Entrance is setting of the tone for the rest of the hotel renovation, which will be overseen by New York based designers Champalimaud and BBG. This area re-opened recently with a few architectural modifications, a renewal of furnishings and lighting, and a focus on the existing murals and flooring pattern. 

So what do we see upon entering?

Gone is the Starbucks which offered a confusing welcome to guests even before they got to the main lobby. Gone is the mezzanine that lowered the ceiling height and removed any sense of greatness upon arrival. Gone is the chandelier that seemed so out-of-place in the Art Deco inspired building. Gone is the characterless carpet. In fact, gone are many layers of decor that were added over the years in vapid refurbishments that did nothing for the space except to hide the natural aging of the building. The designers have been careful in de-layering the existing space and restoring it to a grand, elegant look and arrival experience. The Waldorf is, in the words of its designers, "modern again".



 Park Avenue Lobby - Before                                                                                                             Proposed Design - Courtesy of Champalimaud 
                                                                                       Waldorf Astoria New York 

We can't underestimate the challenge involved in renovating an 80-year old, 1200-room urban hotel running at permanently high occupancy rates and with one of the busiest function businesses in the city. And although the hotel interiors are not landmarked, there is a need to deal with the reaction, not always positive, of the community at large towards any kind of improvement or modification.

There are many parallels to be drawn between the renovation of the Waldorf Astoria and other emblematic hotels in cosmopolitan centers. Aside from this project, I was closely involved in the renovation of hotels that have been key destinations in their cities for at least two generations, and I have gained a significant understanding in to how to best approach these projects. 

The projects I have been involved with include the full renovation of the Hotel Bel Air in Los Angeles (California), the re-branding of the oldest luxury hotel in China, the Astor Hotel in Tianjin (Starwood Luxury Collection property), and the phased re-energizing of The Dorchester in London. These distinct properties in three continents interestingly have had many aspects in common through the renovation process. 



Hotel Bel Air - Typical Guestroom (Before and After - Image courtesy of Champalimaud Design)


Hotel Bel Air - Lobby/Reception (Before and After - Image courtesy of Champalimaud Design)


Hotel Astor Tianjin - Exterior (Old Building and Renovated Building)

It is interesting to notice that the perceived history of the buildings by the local community and current guests tends to be a somewhat exaggerated view of the truth, and it often veils a serious acknowledgement of how much the hotels need to be renovated. This is true both in terms of the quality of the building's architecture and interiors, as well as the stories and myths inspired by popular culture. Often the most vocal disagreements towards any renovation come from people that haven't really set foot in the building in a very long time. Although time-consuming and sometimes devoid of any real substance, dealing respectfully with these subjective aspects of a renovation is an important step as they can add extraneous uncertainty to the project, and are often key to generate the right buzz around the hotel's re-opening.

While the subjective variables are very important elements, there are also very tangible aspects of historic hotel renovations that designers must address thoughtfully as they work with the Owner to deploy the investment successfully. I find that some questions must be answered very objectively as they are determinant in the programming phase: 
  • How extensive must the renovation be to achieve a measurable increase in the property's competitiveness?
  • How much "newer" must the hotel look like after the work is completed?
  • How will changes affect the hotel's ability to provide increased guest service?
  • What to keep and what to change when it comes to art, furniture, memorabilia, etc...?
  • What investment is required in technical services such as lighting, HVAC, guest technology and entertainment, to increase the guest comfort and experience?

Answering these questions will help focus the efforts and I've compiled here a list of lessons learned, to-dos and not-to-dos when it comes to historic hotel renovations. This is by no means comprehensive, but it touches on a few significant aspects that should be taken into account:
  • Before the concept is developed, a good deal of research should occur. Investing this time wisely will definitely be valuable . In this research there should be interaction with the community that includes existing guests, local residents and any parties that hold a stake in the hotel's future. There are many different reasons why people feel attached to historic hotels, and it isn't always style or function. It could be memories, and it might just be the fact that they are used to seeing it in a certain way. It is very often a question of perception and of emotion. Displaying a respecting for those emotions is easy to do and has a huge pay-off.
  • Every aspect of the current plans must be questioned. Older hotels tended to have large public spaces with no services associated to them. Activating public areas with F&B service, lounging, informal meeting areas or retail can impact the operations very positively and increase the ROI of the project.
  • Avoid giving the new spaces a room-set feel. Hotels with history have too much authenticity to become mere vignette spaces. They need to be imbued with personality: they need to be a child, or a grand-child of the original, but never a distant cousin.
  • Pastiche should be avoided. Re-creating the original is never a good idea, it often appears fake, and no space can ever live up to what it once was, even if the look before was out-dated. The obvious trick of using old photos and memorabilia never really seems to create the connection it intends, and seldom provides a historic link. Curating a high quality collection could work, but it must be done in the right framework (for more on this, read my post "Is curated overrated?")
  • Seek to re-juvenate, re-energize and do not sacrifice comfort for look. Paying proper attention to selection of furnishings and uphosltered goods is critical.
  • Choose a limited number of vendors rather than spreading specifications over a large number of suppliers. Chances are adjustments will be needed as we near installation, and vendors that feel involved in the process are more likely willing to help. Every vendor likes the idea of being involved with a property that stands out in their credentials and they will go the extra mile on this.
  • Lighting is very important, but traditionally is has never been a feature in itself in more historical interiors. Lighting should enhance visual comfort and perhaps a few key interior architecture features, but it should not be too visible a layer. It must be like the pause in music: without it it is not the same, but you never really know it's there.
  • Avoid thinking that major infra-structure investments are restrictive aspects of the renovation. Technical services are often out-dated and must be upgraded or modified to achieve essential comfort and improve building efficiency. However there are very effective retro-fitting solutions for air conditioning and lighting that should be explored. These are not always clean-cut solutions, and might require additional surveying costs, but they can have an impact in overall investment and save valuable dollars that can be directed to the guest's visual experience.

These are just a few key thoughts that should be kept in mind, but my most important learning has been that the renovation of a historic building is most successful when there is adequate time to develop a comprehensive, holistic approach to the building in one effort, even if the implementation will be sequenced across a longer schedule. Soft-cost investment to bring all the consultants on-board early and the allocation of adequate concepting and planning time by owners and operators is bound to yield high returns later in the process. The best approach in my experience is to work on a game-plan that addresses the building deficiencies, that listens to the community concerns, that focuses on the appropriate variables that will increase the hotel's performance, that provides a vision that will create the right product and that sets a clear framework to guide the key decisions by all stakeholders. Then the schedule can be fine-tuned, and the budget can be properly allocated, but it is important that all essential questions about the hotel's identity are asked and answered before the renovation begins.


Tuesday, October 2, 2012

Can hotels become super-brands?

Throughout the past year, Apple has been rolling-out a make-over of their stores. I visited the 5th Avenue flagship store when it re-opened and at first glance it seemed to be more of an upgrade of the company’s successful retail operating system rather than a re-invention of the i-device’s sanctuary. But as we so often have experienced with Apple products, god is truly in the subtlety of details:

  • The cube is more transparent, with a new lightweight structure that is ever more inviting to discover what is underneath.
  • The lighting is crisper, creating greater visual comfort in the daylight-starved space.
  • Store staff seem to be more efficient, and I am sure that the back-office has had as many upgrades as the front-of-house to ensure an increasingly seamless experience.




These stores are a fascinating part of the Apple story. Not just because they were a visionary aspect of the strategy that turned it into the most prosperous business on earth, but because they have so successfully addressed key challenges of modern retail. They expose the importance of the human layer in brand-building: they apply a seduction strategy, they provide the vehicle to consummate the relationship, and they offer prospects of life-long happiness.

I once read that the conceptual research behind Apple stores had included extensive analysis of hotel spaces, particularly those that create positive dynamic interaction with guests. I later heard a hotel executive express how important Apple stores had been in his own research to re-conceptualize hotel public spaces and to build their hotels awareness as user-friendly destinations. 




Whether we focus on the notion of brands as platforms, or whether we focus in understanding the levels of engagement and interaction that are required to create an appealing product, the reality is that successful branding strategies are the result of a multidimensional layering of experiences that, metaphorically, seek to make every interaction feel like an ever-lasting first kiss.

Creating a desirable product or service in today's dynamic market requires an understanding of how this layering applies to each business and to each industry. High-performance will increasingly come from selling "deeper" services or "stickier" products, or a combination of both. I like to think of the companies that achieve this as "super-brands". It a promise delivered even before payment is made. More than being desirable, these are products and services that are forever tempting.

Apple is an obvious super-brand, but in my dealings with the hospitality industry I have seen companies that are building similarly layered experiences. There are many lessons to learn from the way they are packaging their experiences, so I'll focus on two examples that I find intriguing. One is a hotel brand that seeks to offer broad yet authentic travel destinations, and the other is a retailer that aspires to harness the unique product attributes that hotels possess.



Under its current leadership, Starwood has successfully transitioned the hotel company from a property-centered business to a brand-centered business. With a wide range of experiences offered in its portfolio, which includes Sheraton, Westin, Aloft, Le Meriden, W Hotels, Luxury Collection and St Regis, the company has at its disposal a multi-generational, economically, geographically and aesthetically diverse product offering that provides the opportunity for long-term relationships with its customers, both at a corporate level as well as at a personal level.

It is also a brand that relies strongly on the value of contextual elements in a hotel stay, ensuring that even the shortest stay can be memorable. Starwood strives to provide each property with a story that starts before the arrival and continues after the departure. As an operator that relies on real estate developers in disparate settings, ensuring the fluidity of the experience is a problem that presents a particular set of challenges, but through a disciplined approach to the definition of standards for aesthetics and operations, the brand has been strengthening its delivery well beyond a basic awareness of an experience–centric product.





A manufacturing powerhouse, IKEA has impacted urban living environments in a very significant way. The layering of experiences in its product range includes the sense of economy, the commitment to being ecologically and socially minded, the appeal of a modern simplicity, the possibility of buying “living solutions”, and a sense of independence. A product that found its original competitive advantage in the efficiency of packaging has grown to become itself an efficient way of living, and in the process it deploys the basis for a consumer community: IKEA sells an ideal of Scandinavian culture and design at affordable prices, and provides enough opportunities for customization to keep open the opportunity for something unique.
  

Bigger Storage Ideas - Advertising Agency: Ogilvy Frankfurt, Germany


IKEA has recently announced its intention to move into the hospitality space. Interestingly, they do not have plans to furnish the hotels with their own furniture, but rather to apply the tenet of “good quality at a reasonable price.” Rather than offering the expected room-sets, Ikea is applying a new layer to the brand experience: to unify the philosophy behind the brand and expand the product base through sound company values. By expanding the brand within the same constellation and applying effective strategies of social media consolidation, IKEA activates the feedback loop that continues to enhance the super-brand.