GOOGLE ' S INCENTIVIZED TO DRIVE BUSINESS AND KEEP COST-PER-CLICKS DOWN
PROFILE
It is that business model and an asset-light approach that has allowed Zeidan to first tap into US $ 70 million in venture and real estate capital from the likes of Global Founders Capital , Comcast Ventures , Trinity Ventures and Henley Investments , among others . He has additional US $ 50 million in discretionary capital sitting on the sidelines from an unnamed hedge fund to invest over the next two years in projects that Zeidan believes will offer strong returns .
LIFE ’ S INSPIRATIONS Zeidan was first inspired to create Life House after his brother , a doctor who was spending a lot of time in Uganda helping educate women to become nurses , died in an accident . “ It was a rude awakening that what I was doing was not particularly meaningful or valuable to the universe ,” he says . “ I started to think more about how I could make a living and do something that ' s impactful . To me , there was an obvious connection to travel .”
His other inspiration came from growing up as a Middle Eastern family in Minnesota . “ I found the people that got to know me and were exposed to my family didn ' t judge , and those that didn ' t definitely did judge ,” Zeidan adds . “ I felt that travel could break down barriers via exposure and help people understand their place in the world , as well as everyone else ' s .”
Those life experiences are reflected in the Life House brand , which focuses particularly on historic buildings where there ' s the most value to be derived from being responsive to what ' s there to activate social spaces . In addition , a community manager walks the lobby to interact with guests and make sure their stay is more experiential .
F & B is localized but isn ’ t overdone as a destination space . There is a café , bar and small , thoughtful restaurant in each hotel , but generally speaking amenities are kept simple . “ The size of that space doesn ' t need to be enormous , it just needs to be available ,” Zeidan says .
Communal space like this library at Life House in Miami is meant to drive guest interaction .
GOOGLE ' S INCENTIVIZED TO DRIVE BUSINESS AND KEEP COST-PER-CLICKS DOWN
SO THAT THEY CAN COMPETE AGAINST THE OTAS BECAUSE IF THE COST IS TOO HIGH OPERATORS WILL JUST LIST ON THE OTAS .
Most of the projects are too small for a fitness center , for example , but management will bring in a local yoga instructor to conduct a session in the hotel ’ s courtyard . “ We ' re doing morning meditations in our courtyard now , and it ’ s really resonating . That ' s something that ' s super low cost that our guests appreciate .”
There is no bellman or front-desk checkin and no traditional concierge service – even in a 4-star environment . " We ' re replacing a front desk with kiosks . So we should have a service there that helps educate people on how to use the kiosk , even though it ' s pretty self-explanatory . Then , replacing transactional staff with actual value additive staff to a guest experience ."
Zeidan believes there are travelers who want a high-end physical experience , but doesn ' t need all the services , which allows the team to operate more efficiently in a smaller box . “ Traditionally , you can ' t really make the P & L work at that small of a hotel . We started automating other mundane
– RAMI ZEIDAN
tasks to take out other costs in the hotel . We automated financial reporting and got rid of revenue management , which is centralized at the corporate level .”
The typical 50-room Life House is smaller and more intimate , so guests don ' t have a choice but to run into other guests . “ People just organically get along ,” Zeidan says . “ We have a free happy hour , wine and beer , and breakfast in the lobby . Everyone ' s interacting , generally has been a really cool , interesting mix of people .”
Ultimately , what drives Zeidan and why he ’ s really passionate about what they ' re doing is his feeling , particularly in the current political environment , that there ' s a social good to connecting people and encouraging people to travel and experience new cultures . He wants them to spend less money on a luxury product and more on experiences . “ It has a net ROI to one ' s life , and the fulfillment that they can derive from their life ,” he says .
34 hotelsmag . com April 2019