ach Demuth , global head of hotels research for JLL , the commercial real estate and investment management company , was at a luxury hotel in southern California recently where the rate for a standard room was $ 500 a night . On the club floor , the rate for a room was $ 1,500 . Why the difference ? “ It is about exclusivity ,” said Demuth , who prior to JLL held positions for more than nine years with Ritz-Carlton , a brand closely associated with the clubs and lounges that had been a staple at upper-upscale and luxury hotels for decades . But coming out of the pandemic , Demuth and others believe that these oases are being revisited and reimagined in the face of

changing consumer demand .

Since the pandemic , three factors have had an impact on lounges , according to Kaushik Vardharajan , associate professor of the practice at Boston University School of Hotel Administration . One is guest loyalty , as the spaces became more crowded like their airport counterparts because they were open to guests holding co-branded credit cards and others not staying in club rooms . Some operators came to believe they were providing a service but not getting revenue . For guests , there was frustration in having to wait for food or services .

Second , operations . With the lounges open for extended periods — sometimes 24 / 7 —

staffing became an issue as it is more broadly throughout the hotel industry . “ If you can ’ t find staff to clean rooms ,” said Vardharajan , “ how can you find them to clean a space that is not generating revenue ?”

Finally , from a real estate perspective , some hotels have decided they can repurpose the

THE STANDARD EXECUTIVE LOUNGE ISN ’ T CUTTING IT ANYMORE FOR OWNERS OR GUESTS

– TEDDY BERLIN , SENIOR

DIRECTOR AND BRAND LEADER ,

SIGNIA BY HILTON

spaces — even for guestrooms . In general , Vardharajan said , operators are looking for innovative ways to use these areas without incurring costs .

RETHINKING LOUNGES One brand that is reevaluating these spaces is Signia by Hilton , where Teddy Berlin , senior