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Mint House at 70 Pine in New York offers studios up to two-bedroom apartments . Mint House is purposefully designed for longer stays .
adding that Kasa has been able to bump up the hotel ’ s performance without sacrificing the guest experience .
Companies like Kasa are catching on because their guest experience model is being further embraced as the traveling public becomes more mature and comfortable with depending on technology rather than humans . ( Thank you , Airbnb .) This evolution has allowed new types of operating models to service a set of assets that don ’ t necessarily need a traditional operating structure , such as limited-service hotels that are not deep on F & B .
In these cases , owners are looking to boost net operating income through lower overheads , noted Evan Weiss , COO and principal of LW Hospitality Advisors . “ Typical third-party managers are great for certain hotels that offer higher levels of service
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or a brand infrastructure that requires services , such as a fully staffed front desk , on-site maintenance team and F & B operations ,” he said . “ Alternative operators , which are able to focus as much on the bottom line through expense consolidation , shared team members and technology , as they do on the top line through cutting-edge revenue management and customeracquisition strategies , are becoming more of the norm for certain types of assets in specific locations .”
Traditional hotels aren ’ t the only asset type gaining an influx of new tech-enabled operators . Mint House , a mobile-first purveyor of long-term and short-term stays , operates buildings in markets as diverse as Greenville , S . C ., and New York City , instead of traditional hotels , but its ethos is similar to a Kasa or Life House , leaning on
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technology to deliver the overall guest experience and generate profit for owners . “ Technology creates a smooth , easy guest experience while solving for many of the operational challenges that owners face ,” said Mint House CEO Christian Lee , who for five years was an executive at WeWork .
The Mint House customer journey is similarly selfadministered : guests check in , check out and open doors via the Mint House app and can request assistance or have items delivered to their room from a 24 / 7 remote concierge . There is also the ability to get enhanced services through the app , such as pre-ordering groceries to be stocked in the refrigerator prior to arrival . “ Technology allows us to provide a seamless , one-touch guest experience , as today ’ s traveler has come to expect , while having fewer on-site
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employees than a traditional hotel ,” said Lee . Depending on the market , Lee said a 150-key Mint House , for example , can be successfully run with fewer than 10 employees .
Weiss sees , what he calls “ alternative operators ,” as a new breed of management companies suitable to run properties of a limited-service type at a mid-tier price point . “ Any full-service or upscale hotel ,” he said , which requires a level of service that can ’ t be 100 % traded out for automation , “ would not be a good fit for them .” However , for those hotels that fit the mold , these alternative operators can use their technology and laborlight models “ to effectuate profit and potentially generate upwards of 10 additional percentage points to GOP ,” Weiss concluded .
Some use these upstart operators as a measuring stick for how traditional operators can improve their own delivery . Eric Danziger has led some of the most recognizable hotel companies in the world , from Wyndham Hotels & Resorts to Trump Hotels . He most recently was CEO of hotel operator Resolute Road Hospitality . He doesn ’ t see these operators as a threat to traditional operators as much as a poke to up their own game . “ The hospitality business and management product has evolved since there were no room at the inn — as it should ,” he said . “ Every business needs to evolve and grow in new ways . In the pursuit of best practices ,
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42 hotelsmag . com May / June 2024 |