Luxury fashion brand hotels..a union that achieves high profits in the world of “travel and fashion”

The revival of travel after reaching very bad conditions during the epidemic crisis, had consequences for luxury brand hotels, who have also begun to witness a recovery after the recession and have begun to develop their plan or have already opened other branches such as Bulgari. Armani and Maison Elle, and the sports brand Fila, according to the fashion business.

Opening new hotels from the heart of the fashion world

As a result of this development in the world of travel, the international bureau of the fashion magazine Elle will open the boutique Maison Elle Hotel in the 17th arrondissement of Paris, near the Arc de Triomphe. The 25 rooms of the 4-star hotel will be decorated with antique French furniture and household goods from houses of contemporary French design.

It will also have a spa and an extensive fashion library, where guests can view Elle’s 77-year-old archives, as well as books on French stylists, as a direct and deliberate link between the fashion world and the world of fashion. travel. and tourism.

The hotel is a product of Elle Hospitality, a new wing of the fashion magazine launched by parent company Lagardère Group (the American version of Elle is owned and operated by Hearst).

As Elle International seeks to diversify beyond its fierce print magazine business, it has opened salons and cafes in China and Japan and considers hotels as its next source of profit.

Following the launch of the Paris Hotel for the first time, an environmentally friendly beach destination will open in Jalisco on the Pacific coast of Mexico in the spring of 2023, with more hotels to follow in Brazil, France, Europe and China.

The world of travel and fashion brings a lot of profits

“With the growing number of flights, travelers want to come to a hotel for a unique and luxurious experience and we believe we can attract Elle readers and fashionistas to our hotel,” said Constance Benke, CEO of Elle International.

He noted that partnerships between fashion and travel bring benefits to both parties. On the other hand, hotel operators are experts in providing deeper experiences than visiting the store and here they can be gained.

And there seems to be a greater focus on the concept of “hospitality” for luxury fashion brands. Earlier this month, LVMH hired a new hospitality director (following the departure of former Luxottica CEO Andrea Guerra), as companies hope these hotel experiences will allow loyal customers to plunge into their brand world as well as attract new customers as well as offer an additional revenue stream.

There is a whole fantasy world around the brand and who wears it, and when you apply it to hotels and resorts, it allows more people to enjoy that fantasy, said Irene Florio, executive editor at Condé Nast Traveler.

The occupancy rate of hotels is high

The hotel sector has almost declined during the quarantine period, but is on the road to recovery, with the frequency of hotels in the United States reaching 65% in April, according to hotel analyst firm STR, just slightly lower than the occupancy rate of 67% in April. In 2019, and by 57% in April 2021, hotel occupancy exceeded 80% for STR, while Paris hotels in March reached their first profit levels for the last time during 2019.

There is also an increase in financial opportunities, with the average daily room rate rising 14% since 2019 and hotel groups reaping an extra 10% return on room bookings, according to STR, as travelers after the pandemic look for special hotels and they are willing to pay extra for it, which is why hotels like Bulgaria and Armani are in high demand.

The Bvlgari and Armani hotels are seeing a revival

Therefore, brands are seeing a similar growth and are seizing the opportunity.Bulgaria opened its first hotel in Milan in 2004 and now operates 7 hotels in Europe, the UAE, China and Bali.

Silvio Orsini, Executive Vice President of Bulgaria Hotels and Resorts, said his hotels have experienced occupancy rates that have exceeded pre-pandemic levels and revenues have doubled since 2019, and it is expected that in the next three years, Bulgaria is ready to double the footprint, as it will open 5 more hotels in Moscow, Rome, Tokyo and Los Angeles and Miami Beach.

In March, Armani, which has two hotels in Milan and Dubai, announced it would open a third location in Saudi Arabia in 2025.

It’s not just famous luxury brands. Fila, the Korean-owned sportswear brand, announced in March that it would open a branded hotel in Shanghai in 2024.

Marketing opportunities

Fashion companies see hotel hospitality and opening differently, with experts saying hotels are expected to become a significant source of revenue for Elle, as well as an opportunity to attract more magazine subscribers, especially since the last edition of Elle will be placed in each hotel. room.

Similarly, Scott Malkin, founder and president of Value Retail, believes hotels are a strong driver of customer loyalty, which can translate into other lucrative ventures.

Bulgaria, on the other hand, sees its hotel business, which is a licensing agreement with Marriott International, as a marketing opportunity rather than a financial one.

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