Restoration Hardware Opens Its Own Hotel In Manhattan’s Trendy Meatpacking District
The home furnishings company joins other lifestyle brands and becomes a hotelier.
The California-based home furnishings company, Restoration Hardware has decided to prove just how fabulous their products are by opening its own hotel in Manhattan’s trendy Meatpacking District, which will be choc-a-block full of them. Located around the corner from its 70,000 square-foot flagship store, their move into the hospitality business, was widely anticipated.
The company, reports Crains, has leased (from owners Delshah Capital) all of 55 Gansvoort Street, a 25,000-square-foot building, formerly home of eatery Pastis. The 14-room hotel will double up as a showroom featuring the company’s products near to where The Standard Hotel has proven to be massively profitable.
“Given what’s happening with the High Line and the Whitney Museum and the other major office tenants going there, that neighborhood is gaining a lot of credibility,” said Jeffrey Davis, the head of JLL’s hotels and hospitality group, who was not involved in this transaction. “There is a lot of demand that bodes well for hospitality.” Brokers Paul Amrich and Barry Finkelman, with CBRE, arranged the deal for Restoration Hardware’s hotel.
The move to the trendy neighborhood, known for restaurants, clothes boutiques and nightlife, follows luxury car maker Lexus who created a footprint there last year, opening a restaurant/art gallery/retail store/auto showroom. Samsung also has visibility there with a flagship retail store.
From stores to snores—getting into the hotel business follows a wider trend amongst lifestyle brands to re-frame themselves within a larger picture. West Elm, Equinox, and Shinola have all recently made parallel moves into hospitality. The idea of offering a customized experience that is all them not only helps grow the brand but create a niche of loyal customers in a highly competitive arena.
A direct competitor of Restoration Hardware, West Elm, in partnership with hospitality management and development company DDK, will debut five boutique properties in late 2018 in cities where it has no retail presence—Detroit, Minneapolis, Savannah, Charlotte, and Indianapolis.
Each hotel will have 100 to 250 rooms, with rates from $175 to $400 per night.
“Our focus on mid-tier cities is intentional,” Peter Fowler, vice president of workspace and hospitality at West Elm told Travel + Leisure. “We can tell the stories of these cities from a hospitality standpoint like no one else.”
The concept of a high-end consumer goods company opening a hotel makes sense. Its replicates what potential customers do in their own homes—sleep, bathe, and dress. In many ways, it’s a test drive of the products to see if they would want them to be permanent fixture in their lives. In this respect, the scope for cross marketing is endless, as well as the chance to make a profit as hoteliers.
Shinola, a Detroit based company, specializing in watches, bicycles, journals, and leather goods is due to open its own hotel in the city’s trendy downtown district in the Fall of 2018. Like West Elm, it sees a gap in the market for boutique hotels, along with the chance to enhance its brand.
“Our brand has become increasingly elastic, which allows us to explore different categories and channels,” said Shinola CEO Tom Lewand. “This is an opportunity for us to open a Shinola Hotel in a city and location that’s important to us.”
“Our goal is to create spaces where people can connect with our brand and who we are,” said Parachute founder and CEO Ariel Kaye. “It’s about sharing a point of view in an intimate setting, taking our brand to a tactile and immersive level.”
Echoing the sentiments of all her competitors, Kaye added: “People want more from a hotel stay. It’s not enough anymore to have a place to hang your clothes and sleep. People want a boutique, curated experience that’s intimate, charming, and livable.”
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