At a moment when smaller , drive-to markets feel safer and are more accessible , Chicago-based Aparium Hotel Group might be better positioned than most to rebound from the impact of COVID-19 . With a focus on authenticity , social responsibility and connection to the local community , this eight-hotel , 1,000-room independent owner-operator is positioning itself for growth as distressed assets start to turn over . In its pipeline are six properties set to open in the next 12 to 18 months .
PERSONALITIES
THE FOUNDERS OF CHICAGO-BASED APARIUM HOTEL GROUP TAKE THE
ROAD LESS TRAVELED TO CARVE OUT AN
INDEPENDENT NICHE .
BUILD
LIFET
Kevin Robinson
At a moment when smaller , drive-to markets feel safer and are more accessible , Chicago-based Aparium Hotel Group might be better positioned than most to rebound from the impact of COVID-19 . With a focus on authenticity , social responsibility and connection to the local community , this eight-hotel , 1,000-room independent owner-operator is positioning itself for growth as distressed assets start to turn over . In its pipeline are six properties set to open in the next 12 to 18 months .
Founders Kevin Robinson and Mario Tricoci , whose partnership started when they opened the luxury Elysian hotel in Chicago during the worst days of the 2008 financial crisis ( it was sold and rebranded as a Waldorf Astoria in 2009 after a big investor wanted to cash out ) have learned a lot about resiliency over the past 10 years .
They are also staying true to Aparium ’ s DNA despite temptations to take on management of branded projects .
“ The business model has been to develop adaptive reuse lifestyle projects in secondary markets , for two reasons ,” Tricoci says ( its open hotels are in markets like Detroit , Michigan ; Topeka , Kansas ; Minneapolis , Minnesota ; and Montclair , New Jersey ). “ It ’ s easy access , low hanging fruit , where there was white space in the industry . But also , we didn ’ t want to go out and work for another company . We really wanted to build something that we could do the rest of our working lives .”
Robinson , who spent about 16 years combined at Starwood hotels and Four Seasons Hotels and Resorts , recalls the dramatic impact that the 2008-09 economic collapse had in major markets , and he knew that long term their model could be sustained . “ If we focused on these tertiary , secondary markets , they had less peaks and valleys , economic downside , and recovered more quickly ,” Robinson says . “ And , here we are today . We believe that recovery will indeed be sustainable and quicker in many of the markets that we ’ re in .”
When COVID started to gain ground in March , Aparium quickly closed its lifestyle hotels with strong F & B components . By mid-August only the Topeka property had rooms open , while others were operating only F & B . The Crossroads in Kansas City , The Hewing in Minneapolis and the MC Hotel in Montclair had opened up their rooftop bars and restaurant patio spaces , and were planning to open rooms in September .
Generally , the founders feel pretty good about their position : No assets are levered
16 hotelsmag . com September / October 2020