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Can a lifestyle hotel maven and a Grammy winner make Wyndham cool?
22.01.2024 - 13:39 / thepointsguy.com / Geoff Ballotti / Marc Anthony
Wyndham Hotels & Resorts, lifestyle hotel maven Sam Nazarian and Grammy Award winner Marc Anthony doing anything together might sound like the beginning of a joke, and yet here we are with news that these unlikely bedfellows are launching a new lifestyle hotel brand.
Wyndham and lifestyle hospitality group SBE — founded by Nazarian and which recently partnered with Anthony as an equity partner — launched on Monday morning a new lifestyle hotel concept, dubbed Project HQ Hotels & Residences as a working title.
Project H3 is meant to offer guests a truly attainable lifestyle hotel experience at a time when the lifestyle hotel movement — properties that have a significant focus on destination dining and nightlife as well as design — is out of reach for many wallets.
Wyndham CEO Geoff Ballotti noted in a press roundtable prior to Monday's announcement that rates for Project H3 would likely fall somewhere between $250 and $500 per night. The new brand, which will operate under the umbrella of Wyndham's Registry Collection, also offers Wyndham Rewards loyalty members an entirely new concept for potential award night redemptions.
"This aspirational redemption opportunity we feel right now is exactly like nothing we have," Ballotti said. "It's completely, completely different."
The brand is expected to grow swiftly and capitalize on hotel owners looking to convert from an existing brand they work with to a new concept. Nazarian's team sees an opportunity to provide a brand that embraces the type of residential stays that woo travelers to Airbnb while also building off the lifestyle hotel concept's foundation of offering a strong on-site restaurant and bar lineup, as well as other amenities like branded residences and a health and wellness facility.
Nazarian pointed to existing hotels as well as underutilized office buildings as a way Project H3 can grow. Wyndham and SBE plan to have 50 Project H3 hotels open by 2023, with half that growth expected in the U.S. and half internationally.
A map provided to TPG points to cities like New York City, Washington, D.C., Philadelphia, Miami, Nashville, Chicago, Dallas, Las Vegas, Los Angeles and Denver as some of Project H3's target U.S. markets. Markets like Saudi Arabia, the Caribbean, Latin America, Hong Kong, Seoul, Singapore, Doha, the U.K. and Asia were included as targets for international growth.
The companies noted Project H3 is likely to grow 80% of the time from converting existing buildings and 20% from ground-up construction. While conversions are cheaper than building a new hotel, even the lesser-expensive option won't necessarily come cheap: Hotel owners should expect to spend somewhere between $30,000 and $50,000 per room converting into Project H3 brand
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