BRANDS
WE WERE TRAVELING AROUND , LOOKING AT COLLEGES , AND STAYING IN SOME PRETTY LOUSY HOTELS . I WAS TRYING TO UNDERSTAND WHY THESE MARKETS WEREN ’ T SERVED WITH HIGHER QUALITY HOTELS
viability of that model by entering a market that historically had been underperforming and finding a way to balance the necessary investment with making it financially viable ,” he said .
Invariably , he gets the question : Why only four hotels — it ’ s been more than 15 years ? The strategy is the antithesis of larger franchise companies that oftentimes seek out volume at all costs . Each Study Hotels is owned and operated by Hospitality 3 , a conscientious decision . “ It never made sense to me that you could invest in real estate and then hand over management to someone else without really understanding all of the moving parts and what makes financial success ,” McGowan said . “ We ’ re really focused on making every aspect of the development model work — the connection between the real estate and the day-to-day
– PAUL MCGOWAN , FOUNDER AND PRESIDENT , STUDY HOTELS
it from 86 rooms to 124 rooms by adding two additional floors — a wood , bronze , stone and glass paean to the gothic-style buildings that dot the campus of a school that dates back to 1700 . Upon opening ( the hotel , not the university ), The New York Times wrote a favorable review of the hotel ’ s restaurant , Heirloom , calling special attention to the now off-the-menu clam chowder , the author referring to it as “ particularly good here .”
“ We put a lot of energy into figuring out how to redevelop that asset ,” McGowan said . The result has been an occupancy and rate leader . Proof of concept .
It doesn ’ t come easy . University towns are a draw , but they don ’ t provide yearround demand . “ It ’ s not 12 months out of the year ,” McGowan said , which is why it makes it difficult for a full-service model to work . “ The first thing was to prove the
The Study at University of Chicago opened in January 2022 through a longterm land lease with the university . Photo credit : Margaret Rajic
80 hotelsmag . com May / June 2024