Marketing Review — Fall 2008 - (Page 26)

The Revolutionary Man Going beyond the philosophy of a bed and board promise, he’d bring in someone with a following rather than leave it to an in-house food and beverage manager “The last thing anyone wants to go to is a boring hotel restaurant.” He envisions Edition’s restaurants and bars to be ‘hot spots’ that are very much market driven and different from city to city. Unlike anything in the marketplace, Edition will be driven by originality, product distinction, and great service, so that “guests don’t have to sacrifice to stay in the coolest place in town.” What sets it apart is that each of the new 150 to 250-room hotels will have a different look, using different designers in different cities—the chain that doesn’t look like one. They are taking the boutique hotel idea to a whole new level, focusing on “a feeling rather than a look,” offers Schrager. A nod to Schrager’s belief that consumers are more sophisticated and are looking for individuality and originality, he says that “style and mass market don’t have for his boutique collection. “I was only interested in creating a product. Back then I was the brand. I thought that branding the hotels would be like selling out. It wasn’t a smart thing and I left money on the table.” He says that branding is the visible side of message and communication. “You have to take advantage of product distinction, emotionally connect to someone, and set up a level of expectations to create more value.” But what he did to perfection is master the art of public relations and promotions. His philosophy is based on having a product that is unique and distinct so that the media want to write about. “What people say gives it much greater impact; it does all the heavy lifting.” Entering the residential market What’s also kept the 62-year-old maverick consumed are his first two super luxury residential properties that define “effortless living” and “lifestyle management.” Teaming up with business partner and friend, real estate baron Aby Rosen of RFR residential portfolio is the 28-unit 40 Bond. The architectural masterpiece, with its green glass façade, was developed from the ground up and designed by eminent architects Jacques Herzog and Pierre de Meuron of Switzerlandbased Herzog & Meuron, known for the Tate Modern in London, Tokyo’s Prada store, and The Walker Art Museum in Minneapolis. Hovering somewhere in the $3,000 per square foot range, there are enormous lofts (one of which he kept for himself) and sprawling triplex townhouses that are the first townhouses to be built in the city in decades. Providing all the benefits of living in a five-star hotel, buyers here also get complimentary access to the services at the Gramercy Park Hotel. Staying ahead of the curve Competitive by nature and acutely aware of what his competitors are doing, he sees a lack of imagination. “It only encourages me to come up with new ideas.” However, in the hospitality industry, he credits Four Seasons’ Issy Sharp for his “I had an idea in a segment I believe I invented, and wit company like Marr h a great iott, I can impleme nt it on a grander scale.” to be contradictory.” It’s a first for the ultra-hip Schrager who has only done oneoffs. “It’s a new mountain for me to climb in the boutique segment.” Due to the scale of Edition, Schrager expects to advertise for the very first time in his career. His aversion to it dates back to his nightclub days when advertising was like a death notice. “People didn’t want to go where everyone else went, but to the place where only people in the know go. They wanted to be considered members of unique tribe.” He also admits his past disinterest in creating a brand with a singular name 26 Holdings, it’s part of Schrager's master plan to combine hotels with high-end residential properties. His first foray into residential development was 50 Gramercy Park North with 23 unique luxury residences designed by famed architect, John Pawson, reputed for projects such as the Saatchi home in London and the flagship Calvin Klein store in New York City. Adjacent to the only private park in the city, residents get access as well as around-the-clock service from the Gramercy Park Hotel. The second sparkling addition to the vision of state-of-the art luxury service, as well as trailblazers such as Steve Wynn and Sol Kerzner. He is impressed with pioneers like Statler Hilton for inventing the modern American lodge hotel and Kemmons Wilson, who with Holiday Inn, tapped into the culture of the day and catered to people on the road. “They provided consistency of experience and they were right on the money.” The difference however, he laughs, is that “back then Holiday Inn advertised ‘the best surprise is no surprise,’ while my take would be ‘there’s nothing HSMAI MARKETING REVIEW • FALL 2008 photography: courtesy of ian schrager

Table of Contents Feed for the Digital Edition of Marketing Review — Fall 2008

Marketing Review – Fall 2008 Contents The Online Marketer Success Stories Forecasting Trends Ian Schrager: The Revolutionary Man Leaving No Stone Unturned: The Quest for Ancillary Revenue Gaga Gadgets for Execs on the Go: Functional New Portable Technology to Make Life and Work on the Road More Hospitable Effectively Weathering the Ups and Downs of the Economic Cycle Experiments in Podcasting Higher Transportation Costs and a Slowing Economy Shift Hotel Room Demand

Marketing Review — Fall 2008

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