The Little Nell is about to play on a larger stage. Owners of the iconic Aspen, Colorado, hotel are parlaying its reputation, along with that its less-famous sibling, Limelight, into a beefier portfolio.
Aspen Skiing Company, owned by Chicago’s Crown family, recently formed The Little Nell Hotel Group to seek acquisition and development opportunities for the two brands. It’s for two reasons, says Alinio Azevedo, group managing director and chief operating officer: The family views this as an opportune time to use these brands as a springboard for growth, and the company wants to be ready to run when market conditions improve.
“We understand where we are in the cycle,” he adds. “We’re not naïve about the costs right now and where things are trading. But we believe that starting this process now will put us in a very good position to act quickly when the market cycle turns and we start to see more opportunities.”
The group’s portfolio consists of the flagship property, a 92-room, award-winning luxury hotel; and Limelight properties ranging from 100 to 150 rooms in Aspen and Snowmass, Colorado, and Sun Valley, Idaho. The company also manages Residences at The Little Nell, a vacation ownership development. Azevedo wants to double the size over the next five years, but if the numbers pencil out growth could be even faster. And the firm is eyeing sites beyond just mountain destinations.
Little Nell’s expected growth trajectory is not as steep as Limelight’s, and any expansion will carefully preserve its identity. “We want to be very selective about where we expand the Little Nell brand,” Azevedo says. “We want it to be about our personal connection. We don’t see ourselves going to 300-room Little Nells with meeting and group spaces. That’s not who we are.” The group is eyeing destinations that attract the types of well-heeled guests who choose Aspen and are willing to shell out US$1,000 or more a night for lodging.
“It’s a very select group of markets where we feel a Little Nell can fit; half of those are probably in North America, and half outside,” he adds. Physically, new additions will share some of the flagship’s DNA, but they will reflect the specific setting, whether that’s an urban, beach, mountain or other location. Acknowledging that luxury is “a very crowded space,” Azevedo says he expects the signature Little Nell guest experience — marked by highly personalized service and a residential ambiance — will help the new hotels stand out.
The 4-star Limelight, with rates in the range of US$300 to US$400, pencils out more easily; development will focus on North American destinations that attract adventure-loving couples and families. The brand positions itself as a community living room, attracting locals as well as travelers. Properties are designed with larger rooms and plenty of storage for gear like skis, bikes and surfboards.
“We feel we should be able to serve the clients we serve now when they go to a non-ski destination,” Azevedo says. “It also makes good business sense for us to diversify our business from a seasonality perspective.”
For now, the Crown family will fund expansion and retain ownership and management of the hotels. Down the road, joint ventures with minority partners are a possibility, but Azevedo says there are no plans to seek third-party capital for growth. And the company wants to continue managing only its own properties.
“It’s not just about putting flags out there,” Azevedo adds. “It’s about the opportunity to own a portfolio of high-quality, high-performing assets in leisure destinations for the long term.”