The luxury hotel of 2025 is very different to the luxury hotel of 1980 or 1990. In many ways culture has flattened and the emergence of lifestyle as a segment has further changed things. But as midscale and premium brands have moved upmarket, there has been a conscious move for brands at the very highest end to different themselves through a new kind of service.
One thing that marks this new type of high-end luxury is its distinct lack of commoditisation – the product itself has to be unique. Hotels tend to be smaller than those in the past, they also frequently have the option to be privatised, so the guest or guests can truly be on their own.
“It has to be super relevant to the community,” said Gilda Perez-Alvarado, Accor's chief strategy officer and CEO of Orient Express, who chaired a recent roundtable discussion on behalf of Accor.
One way to make sure you get a truly differentiated product is for the brand operator and the real estate owner to work closely together.
Auberge Resorts Collection, owned by The Friedkin Group, has more than 30 hotels, resorts, residences and private clubs spread across the US, Europe and beyond.
"Historically, with traditional luxury and an operator selection, you pick the brand, the brand would hand you a book of standards, and then you went and you built that hotel. It's not like that anymore, at least not at the luxury, ultra luxury end," said Richard Arnold, chief development officer at Auberge Resorts Collection
He added: “You're designing it together. Their tastes, their preferences, your understanding of the market, the customer, and it's going to evolve with each with each owner, with each project, with each market.”
Locally relevant
For Corinthia, the idea is to make sure the hotel is a hit for both visitors and locals.
The company’s hotel in New York, The Surrey, is a case in point. It has brought in Miami institution Casa Tua on the F&B side to provide a distinct offering.
“It's all about making sure that the hotels are locally relevant to be able to deliver that unique experience, and that we've got activated public areas with a bar, a restaurant, a club, a spa or whatever it is that is as buzzing as possible for as much of the day and as much of the week as possible. And that really drives the local clientele into the hotel.” " said Guido Fredrich, chief development officer at Corinthia Hotels.
Which cities can sustain an ultra-luxury product?
Obviously Places like London, Paris and New York are capable of taking multiple high-end hotels but what about the market in other cities. Madrid and Rime, which has proven especially popular in recent years, are two cities that are attracting a lot of interest.
"Madrid and Rome were so much under the radar, there was not any offering at all,” said Heidi Schmidtke, head of operator selection at JLL EMEA Hotels & Hospitality
Communication is key
What’s also changing in the ultra-luxury sphere is the way owners and operators communicate with their audience. Gone are the days of leaflet and expensive TV ads, in are Whatsapp and influencers.
"From a CRM perspective, technology is so critical. How we're communicating with them. Are we Whatsapping them? Which many of them like. Do we have to speak to an intermediary to speak to this individual? Especially if it's a VVIP celebrity type person, it's very complicated,” Perez-Alvarado said.
Very few travellers are still using a desktop to go and browse images of a hotel or destination so those marketing the product need to work out new ways of connecting. There’s a sense that people now want a more immersive type of storytelling where they can truly get a feel of what is on offer.
"Our sales and marketing and PR team, the average age probably speaks 15 years younger than most hotel companies, and we rely heavily on social media for getting in touch with the guests,” Arnold said.
Keeping employees happy
While technology has the power to augment ultra luxury hospitality, the sector relies more than others on people power to forge connections with guests. And with staffing issues remaining post covid, looking after those that work for you has never been more important.
"I'll go back to the three constituents that are equally important: owner, guest and your talent. You have to deliver on that value proposition. So if you're going charge $1500 $2000 $3,000 a night for a standard room you have to deliver exemplary service, right? And to do that, you need a highly motivated team,” said Arnold.