With a board that has charged RLHC (Red Lion Hotels Corp.) with doubling its portfolio, it should come as no surprise that it was one of three U.S. companies in the past week to launch a lifestyle brand. Hotel RL’s point of difference: it is primarily going to be a 3-star conversion brand that will channel its Pacific-Northwest-coffee-culture roots with free, high-end coffee in the morning (no coffeemakers in the guestroom) and a “bigger than one” essence that speaks to the Millennial mindset.
At somewhere between US$10,000 and US$14,000 per key conversion costs, Hotel RL is going to target top urban markets in the U.S. and should have initial deals in place within the next few weeks and about six before the end of the year, according to Bill Linehan, executive vice president and chief marketing officer for RLHC, who spoke with HOTELS about the concept at the recently concluded Lodging Conference in Phoenix. RLHC’s sales team is targeting tired, full-service hotels that need to be repositioned without a big redevelopment price tag, and Linehan said conservatively two dozen Hotel RLs should be in the pipeline in 2015.
Over the next 18 months, Spokane, Washington-based RLHC expects along with hotel owners to invest between US$50 million and US$100 million on conversions and will selectively pursue joint-venture and equity-ownership opportunities. Linehan added that RLHC will convert some existing Red Lion hotels to the RL brand and that a majority of the deals will be franchises. Linehan said that while there is no new-build prototype currently being developed, there will be some adaptive-reuse opportunities as well.
“As a new brand, Hotel RL has no proximity issues,” said RLHC President and CEO Greg Mount. “We believe having the freshness of a new brand in a singular niche will give our franchisees a competitive advantage in attracting and retaining guests.”
In creating the concept with Chicago-based Gettys Group, the focal point of the open pavilion-style lobby is The Steps, a gathering and seating concept where guests can enjoy an espresso and complimentary Wi-Fi in the mornings or a signature cocktail in the evenings. The Steps will also feature local artistic performances and lectures that will be broadcast in real-time to other hotels in the system.
In addition to The Steps, other signature elements of the Hotel RL brand include distinctive all-day coffee service in the lobby centered around the notion of enticing guests out of their rooms.
The Steps concept is a modular, “plug-and-play” structure and might look a bit different from hotel to hotel, according to Linehan.
Linehan said guestrooms will not have a desk to open the room, as well as non-traditional closets to make the most of spaces that will include banquettes and conversational areas to both work and relax.
The new RLHC technology platform called RevPak will incorporate CRS, CRO, PMS, CRM, content management, web operations, internet marketing services, field marketing and new business intelligence with the goal of lowering the costs of doing business and driving more revenue to RLHC hotels.
Linehan noted that simpler, flat franchise fees will be the norm; variable marketing fees will be streamlined; and “true” areas of protection for developers will be a point of difference.