“ THINGS ARE BECOMING TOO HOMOGENOUS . IT ’ S GETTING VERY DIFFICULT TO UNDERSTAND ALL THE SUBTLETIES BETWEEN THE BIG BOX BRANDS .”
PERSONALITIES
AN
OWNER ' S manager
IN NEXT INCARNATION , STEPHEN BRANDMAN CREATES JOURNAL HOTELS WITH GAW CAPITAL PARTNERS TO BEAT THE BRANDS .
Contributed by KAREN KROLL
Stephen Brandman , co-owner and chief executive officer of Journal Hotels , Los Angeles , is changing his approach with his latest venture . Brandman , who has held management positions at InterContinental Hotels Group and Thompson Hotels , among other firms , says he previously built brands in which “ people would turn their assets over to us , and the buildings would then fit what the brand was .”
This time , Brandman , who shares ownership with Hong Kong-based Gaw Capital Partners , is creating a collection of hotels with active public spaces defined not by demographics but “ psychographics and how people perceive themselves ,” he says . The Journal ’ s eight properties include Mondrian Park Avenue in New York , the Hollywood Roosevelt in Los Angeles and the Ambassador Chicago . It asset manages The Standard Highline in New York and just announced two projects in downtown Los Angeles .
Brandman points to a range of reasons that might play into owners ’ decisions to keep from branding . A REIT may plan to sell in five to seven years , at which point the brand could change . In some cases — like the Trinity Hotel in Los
Angeles , which Journal will operate — the hotel name enjoys a legacy . So , rather than choosing a hard brand , Journal Hotels can provide individuality and develop “ a connective tissue between its collection of hotels ,” Brandman says .
Industry consolidation has resulted in fewer choices , Brandman adds . “ Things are becoming too homogenous . It ’ s getting very difficult to understand all the subtleties between the big box brands .”
Brandman estimates that
“ THINGS ARE BECOMING TOO HOMOGENOUS . IT ’ S GETTING VERY DIFFICULT TO UNDERSTAND ALL THE SUBTLETIES BETWEEN THE BIG BOX BRANDS .”
— STEPHEN BRANDMAN
Journal Hotels ’ portfolio will grow to 11 or 12 properties by year-end . After that , it will add about four properties annually for the next four or five years . He is focused on North America but says he will look at London at some point .
Journal offers options to owners , including property management , more strict
concentration on asset management , and simply managing restaurants or bars . “ In the lifestyle space , ownership groups really want their properties to be very personalized ,” Brandman says . “ We ’ re able to provide customization .” He expects an approximately 70 / 30 breakdown between managed and owned properties .
When it comes to exit strategies , Brandman jokes that he needs to see his 3-year-old son through college . “ We ’ re looking at continuing to grow the collection of hotels , and we ’ ll see where that road takes us .”
Journal Hotels ’ challenge is staying ahead of growth ; Brandman ’ s had to build infrastructure more quickly than he intended . Yet after 30 years in the business , “ I ’ m very humbled by the fact that we ’ ve been received so well ,” he says .
18 hotelsmag . com May 2018