Global Update
The lobby of the Canopy in Portland , Oregon , is expected to include indoor greenery in a city that gets a lot of rain .
two in 2015 . Vanderslice says 2016 will see a big surge in activity , and eventually the brand will become an equal mix of franchised and managed properties .
The mindset Hilton ’ s research to develop a lifestyle brand targeted an audience based on preferences and needs , not demographics alone . In fact , Vanderslice says Hilton tested eight concepts before choosing Canopy . Among discarded concepts was a “ modern B & B ” and another was a “ thrill and chill ” work hard , play hard idea . “ We worked with our owners to define the specifics ,” Vanderslice adds . “ We are investing in some surprising extras and found out what owners would embrace . We did the same for Home2 by Hilton .”
At the end of the day , among other things , Hilton came up with a value proposition that includes a locally inspired gift upon arrival , tastings at happy hour and a complimentary artisanal breakfast delivered in an abridged fashion to guestroom door latches for guests who want a grab-and-go option .
“ We tested these amenities and they played very well , and they celebrate the neighborhood , which is what people want in this category ,” Vanderslice says . “ It ’ s a value proposition . For a small investment developers can have huge return in satisfaction , deliver a feeling of value and , therefore , deliver a higher ADR .”
Hilton also identified the need to take the emphasis off capital-intensive design and offer flexibility to developers . Conversions are expected to account for half of the brand ’ s pipeline , so Hilton will adjust to minimum requirements of 350-sq-ft ( 33-sq-m ) guestrooms ( guestroom furniture is estimated at US $ 14,000 to US $ 17,000 per key ) and 5,000-sqft ( 465-sq-m ) lobbies with a 50 % emphasis on local flavor .
In some cases , if the market requires , Vanderslice says the F & B component could be more of a white-tablecloth operation and include a rooftop bar . Developers are not required to include meeting space , but can do so based on need . “ Our philosophy is to work with owners to keep costs tight and add modules to make it better ,” he adds .
Vanderslice would not comment on projected average daily rate but says it will fit into the upper-upscale space with a bit of a premium , adding , “ If we do this thing right margins should offer an improvement versus traditional full-service hotels and approach focused-service .”
And the name ? Hilton considered more than 100 ideas , according to Vanderslice , only to decide on Canopy because , among other things , it is a nod to the idea of “ we have you covered .”
What Canopy Covers
Five elements are expected to define Canopy :
• Market-driven approach : Hilton will explore with owners potential for amenities such as destination dining , rooftop bars , meeting spaces and pools .
• Great neighborhoods : The brand will embrace being local through design , food and beverage , art and local know-how .
• Comfort and design : Open , welcoming lobby spaces and comfortable rooms will characterize the brand .
• More included value : Basic Wi-Fi and an artisanal breakfast are included .
• “ Positively yours ” culture : “ Enthusiasts ” will deliver a one-stop approach to front-of-house service , and guests will be given more control with amenities such as mobile , straightto-room arrival with smartphones acting as room keys .
www . hotelsmag . com December 2014 HOTELS 11