Loews Hotels & Resorts in January plans to launch the OE Collection, which will be different from many of the other recently announced “collections” as Loews will manage the hotels that fit into the upper-upscale and luxury lifestyle categories.
“OE” stands for Original Experiences, according to Loews Chief Executive Paul Whetsell, who told HOTELS the company is entering the lifestyle segment because his team believes there is a market for traditional Loews Hotels corporate customers who want more of a locally flavored transient experience, too.
“It’s a logical extension of our brand,” Whetsell said. “It’s not a license or franchise — we will be the operator. It’s a strict management vehicle versus traditional Loews hotels, which are typically developed through acquisitions and joint ventures.”
Whetsell added this is not considered a huge opportunity for Loews, and the company does not plan to boast a big pipeline like some of the other major brands now focusing on the lifestyle segment. When OE Collection launches, Whetsell expects to have a few deals lined up and ready to announce. “In major markets we think it gives us a vehicle to broaden our reach,” he says. “In New York City, for example, we have the Loews Regency and could have a lifestyle hotel in the market, too.”
The independent owners who sign up with Loews will keep their names and flags with “OE Collection” acting as a sub-brand. Among the benefits, owners will have full access to all of Loews programs and its distribution systems.
“It’s an interesting play,” Whetsell added. “Five or six years ago we had Kimpton, Morgans and W. Now Hilton and Best Western are coming into the space, which is a reflection of what the consumer is looking for today.”
Whetsell said Millennials and others loyal to Loews hotels will be comfortable staying at an OE Collection hotel that he describes as a bit more edgy in design and F&B, still with gracious service and big on comfort and security. “It’s still consistent with the Loews customer base, and we can try to satisfy this lifestyle interest,” he added.
Eventually, Whetsell concluded, don’t be surprised to see Loews further extend its reach with a 3-star brand, but likely as a franchise play.