aspirations , likes the idea of surf camps and even believes the concept can fit adjacent to urban locales . “ When 2019 rolls around , we expect to have some international announcements made , and we are moving in that direction ,” he says .
CUSTOMIZABLE DEALS Collective Retreats also has the opportunity to strap on to preexisting small hotel projects and add inventory seasonally , based on demand . It also is looking at a more select-service model to generate wider appeal .
Having flexible inventory in peak seasons , such as the ability to break down canvas-type units in Montana in the summer and move them to Hill Country , Texas , for the winter , also makes the economic model appealing .
Mack and his tested team act as the developer , operator , and in some cases , owner . “ We have a very customizable deal structure , but in most of our cases we do a land lease with the property owner , including a performance component , so they ’ re excited when we do well ,” he says .
Turner adds that Mack ’ s team steps in from the beginning to help owners with things like zoning issues and infrastructure issues . “ They understand how to put in the operating protocols to ensure it ’ s a luxury experience ,” he adds . “ What impressed me was their ability to adapt the model to meet the objectives of individual landowners .”
Development costs vary based on the location , but generally , capex is in the 5 % to 10 % range of what it would cost to develop a comparable-ADR , comparable-rated hotel down the road . “ We invest
We invest a lot more in the experience ...
THERE ’ S A PLETHORA OF ASPECTS THAT MAKE OUR ASSET-LIGHT , MOVABLE , CHANGEABLE AND FLEXIBLE UNITS REALLY ATTRACTIVE . — PETER MACK
Collective Retreats tents on a ranch in Vail , Colorado a lot more in the experience ,” Mack says , adding that his team has the ability to move units to different seasonal locations . “ There ’ s a plethora of aspects that make our asset-light , movable , changeable and flexible units really attractive .”
Mack adds that margins are as good as , if not in some cases , better than what owners would see in similar hotel projects , and as they fill in with more units the margins become more favorable , he says .
In what is basically a turnkey operation , a general manager and the culinary team own the on-site experience , overseeing the project from front to back .
“ We ’ ve been at it for a few years now ,” Mack says . “ We spent our first couple of years working on our retreat model and service delivery . I come from a traditional hospitality background , so ensuring that we got the product right was really important .”
Turner says he also likes the idea that units can be shut down or moved based on weather patterns . Good weather has meant great demand , to date , which creates superior margins .
Because of the strong experiential component there is a high degree of shareable , rich imagery and storytelling to market the concept .
“ All of our acquisition and customer management has been done through our internal channels because of that , and we don ’ t see that changing ,” Mack says . “ We ’ re finding that we not only don ’ t use third-party channels , but we don ’ t really want to . And as technology improves , as people become even more and more mobile than they were a couple of years ago , it actually becomes more possible for us to do that effectively .”
As for the future , Mack and Turner call it limitless . “ We look five , 10 years down the road and see the opportunity to be a significantly larger portfolio size with quaint products ,” Mack says .
March 2018 hotelsmag . com 19