Skift Take
Virgin Hotels is attempting to find the right design and programming balance that caters to people within different age groups who share the same lifestyle values.
About 40 percent of guests at the year-old Virgin Chicago are Millennials, and 60 percent of this group are female travelers.
Like the parent Virgin brand, the hotel group focuses on creating a spirit of inclusivity and and incorporating evolving consumer trends among these Gen Yers, but not to the point where that disenfranchises older generations.
Finding that balance is tricky, but having Richard Branson's lifestyle brand on the front of the hotel helps. At least that's what the hotel company is banking on, in part.
Raul Leal, CEO of Virgin Hotels, says the key to success in hospitality today is about developing a loyal and like-minded audience across all age groups, who share values about who they are and how they want to live their lives.
Meaning, for the lifestyle hotel sector to avoid becoming a commodity like the big legacy brands, hospitality professionals need to find a way to engage their customers on a more nuanced and personal level that speaks to their identity.
Making hotels that answer equally well to the needs of business and leisure travelers is one way, both in the guest rooms and a variety of activated social spaces. Designing hotels that take into consideration the needs of solo female business travelers is another.
Since the Virgin Hotels brand was announced in 2010, the company has faced a lot of challenges actually getting hotels off the ground, which we discussed with Leal last year. However, 2018 and 2019 should be pivotal years for scaling the brand.
Presently, the Virgin New York is under construction in Manhattan's Garment District, and is scheduled to open in 2018. Looking ahead, Virgin Hotels properties in Nashville, Dallas, and New Orleans are expected to break ground later this year and early next. Palm Springs, Miami, and London are potentially next.
Following is a slightly edited version of our one-on-one interview with Leal in New York.
Skift: A lot of legacy hotel brands have launched their own lifestyle flags because there's obviously huge demand for more independently spirited hotels with a unique voice. At what point does the whole lifestyle hospitality segment become a commodity?
Raul Leal: I think, and people will say, "Well, how can that be? It's a small percentage of the pie." The way the bigger brands are treating it, they're making it a commodity. The moment that you open a product that you're saying is going to be different, it's going to appeal to a newer generation
