Modus Hotels chose its name as a truncated version of modus operandi, a Latin phrase translated as “method of operation.” For Aaron Katz, president and CEO for the Washington, D.C.-based owner-operator of 12 lifestyle hotels, Modus’ method starts with the concept of “being yourself” because he says guests want to stay as they live.
“We think travelers seek certain elements that enhance their lifestyle and allow them to live the way they want when on road, and that revolves around fitness, wellness, F&B and technology,” Katz said. “We try to partner with local companies to help us execute against that.”
It is as simple as that for Katz, a one-time attorney and tax accountant who believes in growing carefully, cautiously and thoughtfully as he is trusted with managing the assets of his boss, Conrad Cafritz, a 70-something, second-generation D.C. real estate developer. Katz says Modus, which got its start in the 1970s as Potomac Hospitality, is performing very well and is in a growth mode trying to establish its brand, but will more likely grow more with one-off developments as opposed to a major rollout.
However, Katz does believe that perhaps Modus has found a vein for faster growth, and that is the micro-hotel concept similar to CitizenM, Yotel and The Pod. He believes they speak to the communal trend and make great economic sense given the right city center location. But, he adds, it is hard to find the right dirt, which leads him back to saying it is likely Modus will grow at a more tempered pace. But grow it will.
Modus is developing its first 245-room Pod Hotel set for next fall, a license agreement with New York City concept creator BD Hotels, and has a location in Philadelphia to do something similar, perhaps another Pod license. It is also creatingwith Abdo Hospitality a smaller micro-unit property in D.C. called the Hive, which will have a dynamic rooftop bar and lobby experience when it opens in April 2016.
“We are living online, sharing experiences and we can help share them genuinely at the grassroots level. That is why Pod concepts work,” Katz said. “More people traveling want to be in that type of communal environment. We are trying to orient our operations, design, technology and concepts around that bigger idea.”
Modus also has some of the largest hotel rooms in D.C. and even there is trying to create community experiences oriented around F&B, fitness, wellness and entertainment. “These are the things people are focused on in their lives and they want them portable because life has become so portable, and will only become even more so,” Katz added.