TRENDING
Junior suite at Nobu Hotel Los Cabos , Mexico
The points
DON ’ T MATTER
Trevor Horwell
New York City-based Nobu Hotels is on an expansion tear following its launch in 2013 . The hotels ride the reputation of high-end Nobu restaurants , pioneered by chef Nobu Matsuhisa in the 1990s , and are backed by actor Robert DeNiro and movie producer Meir Teper . The group counts 41 restaurants and nine hotels , with nine in the pipeline and openings slated this year for Barcelona , Chicago and Riyadh . CEO Trevor Horwell talks strategy with HOTELS — and why there ’ s no loyalty program .
HOTELS : What is the importance of celebrity presence like Robert DeNiro ?
Trevor Horwell : A lot of people say that it ’ s a factor , but Nobu as a brand stands by itself . It ’ s about the customer , the repeat factor , brand awareness . Then it ’ s the business model , playing to our strength , which is food and beverage . We make big numbers . H : What kind of numbers ? TH : Food and beverage probably average 50 % of revenues , while 20 % to 25 % is more typical for full-service hotels . Last year , occupancy for the group was in excess of 75 %, and we had an average room rate north of US $ 400 . We ’ ve had good RevPARs all over the country . We find our customers are less price-sensitive and want to go to a brand they know and trust . They are not searching for points . If we can retain a Nobu restaurant customer for life , we want to do the same in our hotels . Because our hotels are smaller — the sweet spot is 150 keys — it ’ s more about the personal relationships . H : How many Nobu hotels do you envision ? TH : We could be in 50 cities . We won ’ t go into secondary locations — that would be diverting our attention and we wouldn ’ t make money . Good volumes of 100,000 customers a year are needed and we can ’ t get that in secondary cities . H : What is your geographical mix ? TH : We ’ ve started in the United States and are working on Europe . We have Ibiza Bay and Marbella , both in Spain , and will open a second location in London . We had an opportunistic deal in Manila , but Asia is a tough place . H : Why no loyalty program ? TH : We don ’ t need to have it . We ’ re giving you the best experience you can have . We try to recognize our guests , we want the general manager to know who is coming , who is a repeat customer . When I go to a hotel , I don ’ t book out of loyalty . I go because the location is good , the experience is good , I like the staff and the culture . Loyalty schemes can be tough to administer and become a liability . — JUDITH CROWN
14 hotelsmag . com September 2019