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New Brand Offers Chic Extended-Stay In L.A.

By Adam Kirby, Associate Editor -- Hotels, 9/30/2008 11:00:00 PM

The interior design aesthetic at Palihouse Holloway in West Hollywood is contemporary elegance with a touch of playfulness. Holloway is the flagship hotel of the Palihouse brand.

SANTA MONICA, CALIFORNIA—Established as a developer of some of Southern California’s most hip residential projects, Palisades Development Group is branching out into the lodging industry with an upscale, contemporary take on the extended-stay concept.

Described as “boutique urban lodges” by company CEO Avi Brosh, the Palihouse brand, requiring a minimum 7-night stay, caters to extended-stay guests who want a livelier, more interesting ambiance than is offered by the sector’s existing brands.

The brand’s first property, Palihouse Holloway in West Hollywood, opened in January and charges rates of US$250 to US$750, depending on room type. The 57-key Palihouse Vine is set to open in Hollywood early next year, and a third Palihouse is in the works.

Brosh’s 10-year-old Palisades Development has overseen some 15 residential projects—mostly design-forward loft-style condos—but he remains something of a novice hotelier. Like so many others, he points to the godfathers of boutique hotels as a major style influence.

“The things that really affected me the most are the early Ian Schrager-Philippe Starck collaborations that really changed the way people thought about hotels,” Brosh says. “I’m also greatly influenced by London and New York, in terms of restaurants and bars and older establishments and how those places have produced this amazing longevity and style without trying too hard.”

The 36-key Palihouse Holloway, which offers studios as well as one- and two-bedroom suites, features a vintage-contemporary design aesthetic and a New Orleans-inspired ambience. Guest suites and residences range from 600 sq. ft. to 1,900 sq. ft. (56 sq. m to 176 sq. m) and offer standard extended-stay amenities like fully equipped kitchens and washer-dryers, along with upscale perks like terraces, hardwood floors, LCD TVs, DVD players and bathrooms boasting Carrera marble and rain showers. Wi-Fi is complimentary.

Palihouse properties also will offer full food and beverage services. The Holloway property includes The Hall—a courtyard brasserie and espresso bar—plus a rooftop lounge. The public areas strive for an intimate residential feel, and a roster of resident DJs gives Holloway a hip, pulsing vibe at night.

Palisades Development has a second brand in the works, as well. Custom Hotel, currently a single property in Los Angeles, is a boutique concept targeting hip, transient businesspeople and air travelers. The 250-key Custom has a whimsical personality and a social atmosphere marked by nightly pool parties at Hopscotch, the hotel’s outdoor pool bar with stadium seating.

“Even though it has 250 rooms, it’s really the cool hotel for LAX (the major Los Angeles airport),” Brosh says. “We get the business traveler who is looking for something stylistically that is more fun and interesting.”

Custom’s F&B operation is Bistrotek, an American-style bistro that pulls most of its business from locals. The hotel opened in January and is getting rates between US$149 and US$239. More Custom properties are in the plans, Brosh says, but have yet to be announced.

Although Palisades Development has done the bulk of its business in Southern California to date, Brosh has aspirations to expand both hotel brands across North America and potentially internationally. He is eyeing the top 15 U.S. markets, and while he declines to offer a target portfolio size, he believes the Custom concept has more room for growth long-term than does the Palihouse brand.

Both Palihouse and Custom are primarily aimed at business travelers, although Palihouse derives a large portion of its business from Hollywood’s entertainment, fashion and multimedia industries. Neither brand attracts many leisure guests. Palihouse and Custom properties are run by Palisades Development’s in-house management company, Hospitality by Palisades.

Direct comments to: adam.kirby@reedbusiness.com

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