Ultra-Luxury Hotels Bet on Measured Growth
 

Interesting article on Skift today about ultra-luxe hotel brands and their expansion plans.

https://skift.com/2023/05/01/how-many-hotels-is-too-many-for-an-ultra-luxury-brand

What is your view - should ultra-luxe brands cap the number of properties, like Bulgari suggested at 15 or One&Only at 35? Would opening many more than that risk diluting the brand?

Also good point about the lack of loyalty programs:

• It’s also generally a mistake for global hotel groups to see ultra-luxury hotels as something to acquire to feed into their loyalty programs as places for members to burn points. If too high of a percentage of the typical guests at an ultra-luxury hotel look, talk, act, and dress like they’re not really one-percenters or the creative elite but are mainly roadwarriors burning points, then the brand’s core, wealthy customer base will notice who they’re rubbing shoulders with in the lobby and will turn away from the brand.

You know what’s a bigger mistake for ultra luxury hotels? To cater to influencers. Once I see that I’m “rubbing shoulders” with those after not having been subjected to this type of crowd for almost 2 decades of dedication to certain properties - I start looking elsewhere.

Thank you for sharing the very interesting article. In my estimation, it should not be a mistake if large loyalty programmes are also represented in the (ultra) luxury sector. After all, when choosing a loyalty programme, the possibility of redeeming points plays an important role. A loyalty programme that offers the possibility to redeem points also in very fancy hotels is likely to attract more members than a programme with less glamorous hotels. Therefore, in a blended calculation, the inclusion of luxury brands is likely to be more profitable for the programme as a whole. It should also be kept in mind that the users of the programme who have enough points for expensive hotels are more likely to be business consultants or other well-educated people whose behaviour is likely to be only marginally different from paying luxury guests.

My only interests in other guests are that they are polite and quiet and that I don't feel out of place for not wearing high-end designer clothing. That being said, I'm hard pressed to think of a time that's been a problem at an ultra-luxury property. Some business consultant types are rather self-important DYKWIA types. EDIT: my wife reminds me of snooty guests and staff at the PH Vienna, which is not really a top tier hotel.

The problem with too large a footprint is quality control. I don't care about scarcity; I care about having a good experience.

Loyalty programs are rather far down on my list of priorities.

This 100% - in a way, I don’t care if you have one or 100 properties, it’s that you provide good service and a nice hard product. And I’d maybe even say that I prefer more properties so that if I’m traveling to both cities and remote destinations, there’s a brand I can trust.

For example, Ritz-Carlton has never impressed me, but I continue to return to FS (with a few exceptions).

And that comment about other guests and loyalty programs is laughable to me. I generally give off a “SF tech bro” vibe. In most cases, I couldn’t care less how the other guests dress or talk. Just that they’re unobtrusive/not obnoxious

The article seemed to be shakey with its assertions in many ways. The Ritz-Carlton one of the world's few "super luxury" chains. Really?

I thought it was odd that the article didn't even address the topic of hotel management/ branding. I don't see how you can even start to address the topic without thinking about what you own, how you license and who manages your hotels. It's the entire ball game.

What makes a luxury chain to me is both hardware and service levels which are at a consistently high level and with some common themes across the world. I stayed at the Chedi Lustica Bay over the weekend and while there were no issues with my stay, it had nothing in common with what I associate with the Chedi brand.

I'd imagine the problem with these articles are that many of the writers (my assumption) have very little experience in true ultra-luxury travel. i.e. paid on their own dime.
If you're a writer grossing $90k - $120k per year (which is objectively a great/above avg. income), no way you're frequently visiting Laucala, Singita, Aman (the higher priced ones), Cheval Blanc, The Brando, Fregate Island, etc. on your own.
When the company sends you on a free/research trip to a mid tier luxe hotel, and you're then fed the brand's presentations, of course you'd drink the kool-aid and (honestly) write with 100% confidence in what you're being told.
So I get it but also, a bit nuts.

I think I misread the above in my sleep deprived state so my comment is less relevant but I stand by it for many of the articles I read on a day-to-day basis.
But someone can easily say my POV is crap. Fair enough :)

Slightly OT, but I've experienced my fair share of obnoxious guests at hotels and resorts where there is no loyalty scheme and everyone is paying cash to stay. Unfortunately, they can crop up anywhere. Some of the most obnoxious have been at some of the most exclusive properties. That said, there are still some hotels where nouveau are kept in check by owners who don't put up with any nonsense.

Money does not secure a level. I know very rich people who I would hate to stay in a hotel with and relatively poor people who are incredibly pleasant and sophisticated. What is nonsense is always in the eye of the beholder.
The problem with press articles on luxury is well known. I often use such articles as a source of amusement.

Indeed. One of the guests I recently met on Necker Island had a mouth like it was controlled by ChatGTP trying to impersonate Jerry Sadowitz.

Completely agree on the freebie trips - it really undermines the perceived value and integrity of the ultra luxurious destinations.

It's the Ritz Carlton.

Tend to agree, even as some properties are still in the segment. Also while some PH are nice, others are not in this league. Also never felt the need to stay at a 1Hotel.

My vote goes to 1 Hotel. Not ultra high end luxury at all.

For me, Four Seasons is the most consistent brand. There are FS that are less amazing (like the one’s in Egypt for example), but overall I never had a disapponting stay.

Meanwhile, some of the St. Regis, Ritz-Carlton and Waldorf Astoria properties I stayed at were far from being luxury and only a slightly better version of a standard Marriott or Hilton hotel.