hospitalitystyle.com

(August 2011) posted on Fri Aug 26, 2011 EDT

A story on quirky hotels reflects the investment community’s renewed interest in hotels of all kinds.

By Mary Scoviak

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It’s not every day that Hospitality Style gets to scoop the Wall Street Journal. Remember Sala Silver Mine from our Spring 2011 issue?  On August 25, the WSJ had a front-page story  on unusual hotels….with Sala as the first example. Ego-stroking aside (and yes, we’re being pleasantly insufferable for a couple of hours), the fact this story was front-page material for one of the world’s most respected financial newspapers is the real news for our industry. Clearly, it’s a great topic for an easy summer read. But it’s also a reminder that, with 20-percent plus ROI potential, hotels are once again a very appealing real estate play for REITs, private equity funds and high net worth individuals.

This coverage is also a compelling argument for the role of design as an investment. Sala Silver Mine would have earned some press because it’s one of a kind. But the glamorous look and fairy tale feel created by Wohnzimmer’s Magnus Svedjemarker are what earned international attention from movers and shakers. What’s lost on a lot of people outside of the industry is that the same level of creativity that is bringing innovation to out of the box projects such as treehouses and repurposed oil rig pods is transforming the interiors of big box and big brand hotels such as the Hilton Pattaya  and the Ritz-Carlton and the JW Marriott at L.A. Live.

Every hotel we cover has something that’s as unique as Sala—whether it’s the energy of  Hotel Missoni  or the spherical motif of the W London. Hopefully, owners and operators will recognize what these design differentiators mean as revenue drivers and budget accordingly so that hospitality designers can continue to rock the visual world.