Minibar sales will go through the roof at The Standard Hollywood in Q1 2018 if its new partner, Lord Jones, earns approval from regulatory authorities in California to lease a retail shop in the hotel’s lobby and sell cannabis-infused edibles and body care products.
“Who would have thought?” Amar Lalvani, CEO and managing partner of Standard International told HOTELS. “We like what they do. We love their aesthetic. It’s another experience for our guests, which is what we are in the business of doing… The nice thing about what we do and being our size is we are not trying to be all things to all people. We like to bring to guests things we think are interesting and we enjoy, and we hope they enjoy them, too.
“We are not forcing them into anything nor are we trying to please everybody. It’s a continuation on what our brand is built on,“ Lalvani added.
The brand also received an infusion of capital in early November when Bangkok’s Sansiri Public Co. Ltd. invested US$58 million to secure a 35% stake in Standard International, which is comprised of three business units: The Standard hotel brand and operations; the Bunkhouse Group of lifestyle hotels based in Austin, Texas; and Standard’s One Night mobile booking application. Standard International also recently sold its flagship New York City Highline property to Hong Kong’s Gaw Capital – all of which gives the Standard brand new impetus to expand, including a European flagship coming Q3 2108 to London as well as potential opportunities in Asia through the Sansiri connection.
Lalvani made it very clear that this will be Lord Jones’ business and their dispensary license with the state of California. “We’re hoping they get their license in the first quarter of 2018. It’s evolving landscape and Lord Jones is just understanding the regulations and the actual mechanics are still forthcoming. We will be pretty close to first in line,” he said.
When asked how the Standard International legal team reacted to the plan, Lalvani said the company is very careful about what it does and makes sure it is in line with regulations. “To the extent it is legal in California and will be heavily regulated we will fully comply,” he said. “It looks like it will be a legal activity as long as you do it in accordance with whatever the regulations are… The reality is we have dealt with alcohol regulations forever and the same types of risks probably apply here.”
But won’t a cannabis dealer in the lobby bring in the wrong crowd? “Not really,” Lalvani added. “If you look at the partner we selected and their attention to detail and quality, and from what I have watched and seen it is not a fly-by-night operation, it is not connected to a negative element. It is about people who want to celebrate the beauty of what can be created through this natural product. Their brand is complimentary and an elevated experience relative to what one would imagine with cannabis-based tourism.”
When asked to weigh the positive versus the potential negatives of this decision, Lalvani said, “The negatives are not negatives we worry about. There maybe some people who look at this negatively and that’s ok. Again, we are not trying to be all things to all people. We see Lord Jones as a high-quality partner and we see the landscape as it relates to cannabis evolving, and we think it is positive to be ahead of that and bring something new.”
Lalvani added that if The Standard creates the best experiences for people it will benefit engagement, loyalty, excitement, as well as provide another reason to be in the hotel and talk about our brand. “There might be some obvious add-ons and are maybe minibar sales is where we will get the most benefit,” he joked.
The two companies also plan to develop an exclusive line of co-branded THC and hemp-derived CBD products that will be available to guests and locals at all Standard hotels.
“The Standard logo is upside down for a reason and this is very consistent with questioning everything and thinking about the hospitality business in a different way,” Lalvani continued. “This is consistent with who we have been and done and this is just a next layer of experience creation we are taking on.”