Hotel & Motel Management - October 1, 2007 - (Page 38)

38 News H&MM October 1, 2007 | HotelMotel.com A cause célèbre By Lillian Cunningham CONTRIBUTING EDITOR National Report—Come January 2008, a touch of celebrity will grace an otherwise typical boutique hotel opening. The hotel is Costa D’Este in Vero Beach, Fla. And the owner is Latin singer Gloria Estefan and her company, Estefan Enterprises. This is not the ﬁrst time boutique and celebrity have joined forces in the hotel world. The trend in high-proﬁle, small-scale properties has been on the rise. And it has been followed closely by a trend in celebrity partnerships. With Robert DeNiro’s TriBeCa ho- tel in Manhattan set to open this summer, and Estefan’s launch just around the corner, the industry seems primed for an even greater inﬂux of fame and fortune. Burt Cabañas, chairman and c.e.o. of Benchmark Hospitality International, is one developer who has worked through the process ﬁrsthand. His partnership with Gloria and Emilio Estefan has been the ﬁrst celebrity venture for Benchmark, and one that holds great potential beyond the project itself. “The opportunity to manage one of Gloria and Emilio’s important real estate properties gives us an enormous amount of credibility,” Cabañas said. “Success here will open many doors.” It is precisely such far-reaching celebrity reputations that make partnerships like Cabañas’ and Estefan’s so enviable. For a boutique hotel, few opportunities hold the same potential for immediate success. “The idea that the hotel market—especially for high-end customers—has become so competitive is a large part of why celebrity partnerships are appealing,” said Jeremy Glaser, equity analyst at Morningstar. “They offer an instant way of branding the hotel. It’s historically been very difﬁcult to launch a boutique hotel brand.” By partnering with a celebrity investor, smaller hotels can grab hold of one of the greatest assets that larger developers possess: a recognizable brand. Whereas a company like Starwood Hotels and Resorts Worldwide has the advantage of securing its brand through years of marketing and development, an upstart boutique must use other means to establish its place among the upper echelon. The brand image of a celebrity does just that. “I think it attracts investor interest in the same way it attracts customer interest,” Glaser said. “Investors are more likely to fund an upstart project that has a highproﬁle ﬁgure attached to it,” Glaser said. The process of launching the development may be slower, but the payoff is in the publicity and See Celebrity | page 46 CIRCLE NO. 134 BENCHMARK HOSPITALITY INTERNATIONAL Celebrity involvement can help boutique hotels get off the ground The Costa D’Este hotel in Vero Beach, Fla., is owned by Estefan Enterprises and is being developed by Benchmark Hospitality International. http://HotelMotel.com http://www.midasfinancials.com http://www.midasfinancials.com http://www.midasfinancials.com

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Hotel & Motel Management - October 1, 2007 Contents Independents Rely on Guest Feedback Models Showcase Aloft, Element Brands Trainers Emphasize Communication, Cooperation Perspective At Your Risk Satisfaction Trends Sales Clinic Energy Star Update HotelWorld Update Trends & Stats Dressing Walls in 'Green' Music Programming Provides a Sound Solution Remote Check-In/Out for Leisure Travelers Q&A: Western U.S. Pipeline Softgoods - Beds and Bedding Transactions A Cause Célèbre Awards People on the Move Events Cleaning and Maintenance Solutions Marketplace Ad/Editorial Index Classifieds Checking Out

Hotel & Motel Management - October 1, 2007

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