The Maverick: The boutique hotels that risk going out of fashion
The boutique hotel industry has finally come of age. Twenty-one years after it was invented by Ian Schrager, a nightclub entrepreneur, in New York, his business is going public. But the company he created, Morgans Hotel Group, will have to cope without him; he resigned as chief executive last June. It will be interesting to see if the group can retain its cutting edge, especially as the segment has become steadily more crowded.
Schrager pioneered the concept of cool design, with trendy bars and restaurants, inside urban hotels. He understood the power of public relations and destination locations: he and partner Steve Rubell previously ran Studio 54, the ultra-hip 1970s New York discotheque.
Unfortunately they got into trouble with the taxman, and Rubell died of Aids; but despite that Schrager got big in the hospitality business.
From Morgans and the Royalton in New York, he opened the Delano and Mondrian in Miami, the Clift in San Francisco and the Sanderson and St Martins Lane hotels in London. All were critically acclaimed and they thronged with celebrity guests.
The economics were brilliant - rooms were cramped and accommodation rates high - but trendy travellers like staying in places with happening public spaces and the right sort of reputation, rather than the usual boring chains. Hip designers such as Philippe Starck did the designs and got opinion formers talking.
Meanwhile the food and drink facilities were big contributors - and acted as wonderful marketing devices, promoting the hotels as smart places to stay. Unlike many hotel companies, Morgans did not franchise; it tends to own and manage its properties and brands.
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Source - Telegraph
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