The hotel world's trendsetter

13 May 2003 by
The hotel world's trendsetter

So, first things first. If, like many, you've been wondering why certain hip hotels seem to have a preoccupation with live goldfish, wonder no longer. You now have someone to blame.

That person is Steve Pinetti, senior vice-president, sales and marketing, with the Kimpton Hotel & Restaurant Group. Six years ago, while the San Francisco-based company was working on the opening of its Hotel Monaco in Seattle, talk got round to the nautical-themed mural in the lobby and how it might be incorporated throughout the hotel.

Soon executives were discussing the psychological benefits of owning pets, and Pinetti suggested providing complimentary goldfish for guests. The rest is history, and a large amount of mimicry. All seven hotels under Kimpton's Hotel Monaco brand now offer the "Guppy Love" goldfish service, but there have been copycats along the way. Live goldfish are a mainstay in many competing boutique properties, and some, like New York's SoHo Grand, have replicated the fish companion concept.

Although Kimpton, and in particular Pinetti, remain safe in the knowledge that this and other ideas were originally theirs, the company admits it is a tad frustrating when the competition grabs the headlines or lays claim to the concepts.

"All the good things we've done have been copied," Pinetti says. "Unfortunately, what happens is a big brand can copy something really cool and go out and spend a tonne of money on it."

Among the other concepts Kimpton claims to have originated are pet-friendly hotels, custom-made "tall" beds, and complimentary wine hours for guests. With just 36 hotels and 35 restaurants in 11 US cities, plus two hotels and a restaurant in Canada, Kimpton is relatively small-fry. But its trendy bedrooms, cocktail lounges and brasseries are on the lips of customers and competitors alike. Nearly every US operator you talk to looks to Kimpton for inspiration, and credits it with inventing boutique hotels.

Privately-held Kimpton was started in San Francisco in 1981 by Bill Kimpton, an investment banker with a penchant for multi-coloured jumpers and long evenings of storytelling. Both of these loves spilled over into his business. He wanted guests to feel welcome, safe and not intimidated, and built each hotel around a basic offering of lobby fireplace and friendly restaurant. Many of the properties are transformed historic buildings, and the stories behind them are crucial to their marketing and success, says the company.

"People don't care if it's got 100 rooms, but they can always remember a story," says chairman and chief executive officer Tom LaTour. "Telling a story through bricks and mortar is what the boutique hotel business is all about."

Pinetti joined Kimpton in 1983, closely followed by LaTour. Whereas Bill Kimpton, now deceased, brought financial acumen and his own distinct personality to the group, it is LaTour and Pinetti - both with hotel chain backgrounds - who are credited with the group's operations and making the headline-grabbing concepts work (see panel below).

Creative ideas Ideas are culled from magazines, fashion shows, mixing with creative types, and speaking to hotel guests at the evening wine hours. Head office staff - particularly sales people out on the road - are encouraged to be constantly on the lookout for inspiration.

When a new hotel is planned, Kimpton invites people from theatres, galleries and department stores in the area - they could be buyers from the local Macy's department store or theatre directors - to throw around ideas that might suit that particular location.

Both LaTour and Pinetti lay tremendous importance on customer input, and suggestions from the wine hours and general chats with guests are filed away and returned to with every new hotel. But both acknowledge that while the quirky things work to bring in press and guests, there's a fine line between originality and pretension. Asked how he avoids the latter, LaTour quips: "We have a good-taste panel and it's chaired by me. If it gets too wacky or lacks taste or is too temporary, I have CEO prerogative to cancel it or deny the request."

Kimpton's philosophy is that travellers want something different and exciting in a hotel, and that the element of excitement should not be underestimated, no matter what the age group or location. Last November it opened the 178-bedroom Hotel Helix in Washington, DC, a "new-century" hotel with a pop-art-meets-industrial design. Features include a glitter driveway, spun-steel sofas, heat-sensitive furniture, bunk rooms for children, and relaxing-zone rooms with lava lamps and plasma-screen TVs.

"Washington, DC, is as conservative a town as you would think," says Pinetti, "but we've had so much success with these kinds of alternative themes elsewhere, and there are enough people travelling who are over 45 and in touch with their inner child to try it. Then there are the under-35s who are actively looking for an alternative."

Chef's personality The restaurants are controlled by a separate division and are what LaTour calls "chef-driven" - the chef's personality is at the forefront, and he or she is encouraged to act like they own the place. In San Francisco, these include such popular nightspots as Harry Denton's Starlight Room and Scala's Bistro.

They aim to win over the locals, not hotel guests (80% of the restaurant clientele is non-hotel). "If you're successful with the locals, you will automatically be successful with the visitors, not the other way around," says LaTour, who points out that each restaurant is profitable in its own right. Kimpton's hotel occupancy levels are usually in the 80-90% range (they are currently in the 60-70% range), and repeat business runs at 35-40%.

Although business has seen a slump across the USA, LaTour is optimistic about 2004 and wants eventually to be in all major US cities. He also doesn't rule out Europe. Meanwhile, Pinetti has resolved to continue his "guerrilla marketing" techniques of trying to fill every room whatever the weather or global situation.

In 2000 the company caught the attention of Marriott, and the two parties talked about a buyout or partnership. But after many meetings, the deal collapsed. Some say Bill Kimpton insisted on maintaining tight control over the company.

Whatever the reason, the Kimpton Group seems happy to have walked away. LaTour says its size and private ownership is what enables it to be creative.

"We're not bound by lots of corporate rules. If you're in a branded environment like Sheraton, they're all groomed to look alike and act alike and be very dependable and predictable. We believe travellers want to have a certain level of excitement and a surprise or two."

Kimpton's quirks
* Hotel Rouge, Washington, DC: red-eye travellers get a 6am check-in, eye cream, bottled water and a slice of pizza.
* Sky Hotel, Aspen, Colorado: aprŠs-ski energy cocktails on the heated sundeck, bottled oxygen in the minibars.
* Hotel Madera, Washington, DC: frequent guests can leave fitness gear, books and personals in a stowaway bag; long-stay guests get a "nosh room" with kitchen, condiments and grocery delivery.
* Hotel Triton, San Francisco: celebrity suites including art and artifacts from Carlos Santana, Graham Nash and Jerry Garcia.

What's hot
Trends * Yoga - Tom LaTour is a yoga practitioner and is setting aside space in all new rooms for yoga mats and videos.
* Pets - many Kimpton hotels allow pets to stay or offer companion goldfish. LaTour says the de-stress benefits to guests are huge.

Buzz words * The new normal - in a post-11 September world, people want to feel safe, comfortable, and to treat themselves. "Home-style cooking is huge, as is spending on the good life," says LaTour.
* Mass customisation - the ability to customise your marketing to a mass audience. Kimpton's one-year-old loyalty scheme works not on points but on consumer preferences. Regular guests fill in lifestyle questionnaires and are "rewarded" by personal touches in their room - a favourite type of CD, plant or book, for example.

Kimpton facts

Kimpton Hotels & Restaurants
Tel: 00 1 415 397 5572
Web: www.kimptongroup.com

Hotels: 38, two to open in 2003
Restaurants: 36
Average occupancy: 62%
Average daily rate: $140 (£99.95)
Annual sales (estimate): $400m (£254.15)

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