The phrase "luxury hospitality" is meaningless today
Lifestyle or design-led retail businesses should not be conflated as "luxury hospitality".
Hello everyone, happy Friday.
What does the phrase “luxury hospitality”, mean to you? Some people think the $600/night lifestyle city hotel with nice design and mediocre service is “luxury”. Others (like myself), would disagree and say that if you have to pay a fee to use the sauna or if there are any DIY elements, it doesn’t matter how chic the design is or how vibey the lobby is, it’s not luxury.
I had a funny email interaction this week with a PR person who was trying to pitch me a new dentistry practice in NY. For context, this dentistry looks akin to a VC-backed wellness club in the way that it approaches positioning and customer experience.
I wrote back with: “Thank you for your kind words. Unfortunately I don't accept inbound interview requests and I only focus on luxury hospitality.”
Her response: “Noted on inbounds. [REDACTED BUSINESS NAME] is a luxury, hospitality focused wellness destination. I thought it would be a fit.”
Since when is your dentist a “luxury hospitality focused wellness destination”? And since when does the phrase “luxury hospitality” pertain to anything outside of hotels and F&B? Is my gym or my skincare clinic a “luxury hospitality” business too? If the Chanel store serves me champagne while I shop and provides good assistance, does that mean that Chanel now a “luxury hospitality” business?
Is hospitality so hot that we have to position everything consumer facing as such for it to sound compelling? Sure, any business can integrate elements of good hospitality in their customer experience, but I’m afraid that describing any retail business as “hospitality” and anything design-led as “luxury” makes the original phrase lose its meaning.
To me, “luxury hospitality” describes specifically a hotel or F&B experience in which:
the staff are really good at anticipating your needs and therefore reduce decision fatigue
the materials are thoughtfully chosen to optimize for visual harmony, comfort, and patina over time
there is consistency in the quality of the rooms and F&B experience
a sense of abundance, whether that’s a free mini bar, indulgent spa experience included in the room rate, complimentary rides to the nearby town, etc
“surprise & delight” and gifts that make you feel seen and taken care of
I’m sure I could add a few more things to this list, but at the heart of what merits a hospitality business to be labeled as luxury, besides its price, are mostly these key elements. For additional context, I’m clarifying here how I personally define “luxury hospitality” ahead of an exciting announcement towards the end of this month. My inbox is open to discussion; just reply directly to this email.
If you’re new here, or want to catch up on the best of The Stanza, I’d recommend that you start here.
In today’s newsletter:
Is my gym or my skincare clinic a “luxury hospitality” business too?
What other product (besides hotel rooms) do hotel operators need to build defensible moats around?
Are lifestyle hotel operators overpaying for sites in Europe?
Milan now has one of the highest concentrations of wealth in the world. What does that mean for its hotel market?
If 2024 was the year of members clubs, 2025 & 2026 the year of ultra luxury hotels, what product is next?
The future of wellness hospitality: what will be the benchmark in 15 years?
Read previous issues of The Stanza here.
No new listings this week.
Other opportunities currently live:
Investment opportunity: Ultra-luxury hotel & branded residential development in downtown NYC
For sale: Fully-entitled hospitality site in West Hollywood (~45,000 SF)
Investment Opportunity: Ultra-luxury hotel & residential development in Hudson Valley New York
For sale: 18th century Georgian building in London Mayfair, which could be a private residence or members club (25,000 SF)
Investment opportunity: The “Chiltern Firehouse-meets-Chateau Marmont” of Sunset Harbor, Miami
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