Latest / Brand Insiders / Kenan Simmons of Small Luxury Hotels of the World on Independent Spirit, the Hilton Partnership, and the Resurgence of Boutique Luxury

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Kenan Simmons of Small Luxury Hotels of the World on Independent Spirit, the Hilton Partnership, and the Resurgence of Boutique Luxury · Brand Insiders

• 0:12
  SPEAKER_01: Welcome to another episode of Brand Insiders.
• 0:15
  SPEAKER_01: I'm joined today by Kennan Simmons.
• 0:18
  SPEAKER_01: He's the Senior Vice President Americas for Small Luxury Hotels of the World.
• 0:23
  SPEAKER_01: Kennan, how are you?
• 0:25
  SPEAKER_00: Excellent.
• 0:26
  SPEAKER_00: Thanks, Adam.
• 0:26
  SPEAKER_00: Thank you for having me.
• 0:27
  SPEAKER_01: Yeah, no, it's uh it's fantastic to have you on because Small Luxury Hotels is doing amazing things around the world, uh, insofar as bringing to light just exceptional expressions of hospitality that oftentimes are quite local.
• 0:44
  SPEAKER_01: But that's part of the beauty of it is that you're bringing this global audience to local, really incredible hotels.
• 0:51
  SPEAKER_01: So that's my side of things.
• 0:53
  SPEAKER_01: But why don't you start off by telling us uh the elevator pitch for small luxury hotels of the world and what your role is therein?
• 0:59
  SPEAKER_00: Well, thank you, Adam.
• 1:00
  SPEAKER_00: And again, small luxury hotels of the world, we're a global community.
• 1:04
  SPEAKER_00: We have about 700 plus independently owned boutique hotels across 100 plus countries.
• 1:11
  SPEAKER_00: But what's really, really unique about SLH hotels is their individuality.
• 1:16
  SPEAKER_00: There's no two SLH hotels that are the same.
• 1:19
  SPEAKER_00: Most of our properties reflect the character of the destination.
• 1:23
  SPEAKER_00: They have a strong sense of place, their genuinely personal approach to hospitality.
• 1:28
  SPEAKER_00: And what you'll find at SLH hotels, the majority of our hotels are individually owned.
• 1:34
  SPEAKER_00: So our hotels are either owned by first generation hoteliers all the way up to fifth generation hoteliers.
• 1:41
  SPEAKER_00: A lot of our owners have come from other industries where they they've made their mark, whether it's in tech or finance or what have you.
• 1:48
  SPEAKER_00: And this is kind of their their second career where they're they're fueling their passion, whether it be for culinary, for design or what have you.
• 1:59
  SPEAKER_00: And they want to share their kind of unique perspective on hospitality.
• 2:04
  SPEAKER_00: And a lot of these owners also have a real connection to the destination, whether they grew up in that that city or or destination, or they just have fond memories or just found a beautiful piece of real estate that they want to develop and share with the world.
• 2:21
  SPEAKER_01: Yeah.
• 2:21
  SPEAKER_01: So what I'm hearing is that these hotels are as much about the people behind them as they are about just going to any destination that there is around the world.
• 2:32
  SPEAKER_00: 100%.
• 2:33
  SPEAKER_00: And a lot of our hotels around the property, you'll see the owner.
• 2:37
  SPEAKER_00: You may not even know it's the owner.
• 2:39
  SPEAKER_00: The owner could be running the property or or helping out in a lot of different aspects of the property, but they they really bring their passion for not only the project, but also for their their genuine passion for hospitality.
• 2:53
  SPEAKER_01: Yeah.
• 2:54
  SPEAKER_01: And how does small luxury hotels really help to bring these independent hotels to the world stage?
• 3:00
  SPEAKER_00: I think there are a lot of means, whether it's our our our sales and marketing team that are on the ground, meeting with customers on a daily basis, the marketing that we do, social media, PR.
• 3:11
  SPEAKER_00: I I think what you you have to realize in the hospitality sector is probably one of the most costliest parts of the business is customer acquisition.
• 3:22
  SPEAKER_00: And you know, with with all the different websites out there today, all this noise, how do you really find customers if you're an individual hotel with a limited budget?
• 3:34
  SPEAKER_00: That's where a brand like SLH steps in.
• 3:37
  SPEAKER_00: We help you scale to reach kind of the world rather than you trying to reach the world on your own.
• 3:44
  SPEAKER_01: Yeah, that's a very important point because operationally, running a 25 to 40 key hotel often has the same costs in a lot of departments as running a 400-room hotel.
• 3:57
  SPEAKER_01: So you helping, yeah.
• 3:59
  SPEAKER_00: And I don't think it's any different from whether you're you're a four seasons or Ritz Carlton, Hilton, Hyatt, whoever.
• 4:05
  SPEAKER_00: I think every hotel has its challenges finding new customers.
• 4:10
  SPEAKER_00: And again, when you look at the cost of acquisition for a new customer, you know, sales and marketing can be anywhere from 7 to 11% of your annual revenue from a cost perspective as a department.
• 4:21
  SPEAKER_00: So here you have a 25-room hotel that is not generating these huge revenue numbers, but they still need to reach a diverse customer.
• 4:33
  SPEAKER_00: So, so how do you do that on your own?
• 4:35
  SPEAKER_00: That's where a brand like SLH steps in and helps you do it in more cost effectively as well.
• 4:41
  SPEAKER_01: Yeah.
• 4:41
  SPEAKER_01: And uh just in a general sense, bringing these hotels to the world stage, but also SLH is very innovative just on its own as an organization.
• 4:50
  SPEAKER_01: So to wrap up the introduction that we have here about SLH, how are you innovating hospitality as a whole?
• 4:58
  SPEAKER_00: Well, I I don't I don't know so much if it's innovating hospitality, because I think hospitality is you have to be innovative to keep with the trends and keep with customer demands and what the customer's looking for.
• 5:13
  SPEAKER_00: I think where where we innovate is really curating this collection of really unique independent hotels that I think today's customer is seeking.
• 5:25
  SPEAKER_00: When you when you look at, you know, the sort of the luxury environment out there, and I'm not just talking about hotels, you know, I'm talking about different luxury products for for people with means.
• 5:36
  SPEAKER_00: I think people are, and particularly the younger generation, they're moving away from amassing things, whether it's purses, watches, cars, what have you.
• 5:46
  SPEAKER_00: They're looking for experiences.
• 5:47
  SPEAKER_00: They have the money and they're looking for these unique experiences.
• 5:51
  SPEAKER_00: And that's where I think SLH has has been innovative because we we continue to curate these unique experiences through our hotels.
• 6:01
  SPEAKER_00: And it's finding hotels that, you know, maybe off the beaten path from a, you know, a four-villa um hotel on a private island that we've kind of gone out and found and now are delivering it to the consumer.
• 6:16
  SPEAKER_01: Well, yeah, the the whole evolution of the experience economy, if it's been coined a term, is it's a multi-generational trend and it's going to keep ramping up over the next decade, next two decades.
• 6:27
  SPEAKER_01: But that is the perfect segue into a s a section just talking about your background because you've you've been at SLH now for over a decade, I want to say.
• 6:37
  SPEAKER_00: Yeah, a little over 10 years.
• 6:39
  SPEAKER_00: Um in this business longer than I I I you know, I say people say, Well, how long have you been doing?
• 6:44
  SPEAKER_00: And I say, I really don't want to tell you because then it's gonna make me feel old.
• 6:48
  SPEAKER_00: But been in the hotel business for really kind of my whole career.
• 6:52
  SPEAKER_00: I started in in the hospitality business about two months after college, graduating with a an accounting degree, and you know, started working in New York City as an accountant and realized after two months that I completely hated it.
• 7:05
  SPEAKER_00: Didn't see myself doing it, you know, the rest of my career and started looking at, you know, different options.
• 7:11
  SPEAKER_00: And, you know, there was a boutique hotel, luxury hotel on the upper east side of New York called the Westbury, where, you know, at that time you looked at the classified ads for jobs and, you know, it sounded unique, flexible hours.
• 7:24
  SPEAKER_00: So I gave it a shot and applied.
• 7:26
  SPEAKER_00: I got hired, had a great GM and mentor who really exposed me to the business, you know, started in the front office, worked in food and beverage, and eventually going into sales and marketing and really found that it was a unique business because I I thought that there was really, you know, no two days that that were ever alike.
• 7:45
  SPEAKER_00: It was something new happening each day, and you had to adapt and be flexible.
• 7:49
  SPEAKER_00: And, you know, it was exciting.
• 7:51
  SPEAKER_00: You're you're in an environment where you're meeting great people, and then eventually stayed with that that hotel for a couple of years and then went to work with their corporate office, which at the time was was Forte Hotels, which, you know, back in the day was one of the largest hospitality companies, and then, you know, worked for a few other companies.
• 8:09
  SPEAKER_00: And eventually, when I saw what SLH was doing and where they wanted to bring the company with the new ownership group, I had known them from my days at at leading hotels because they had a few hotels with leading, and approached them and eventually got hired.
• 8:25
  SPEAKER_00: And yeah, it's been a great ride for the past 10 years.
• 8:28
  SPEAKER_01: And just in general or anything specific, how has guest expectations evolved over the past 20 years?
• 8:37
  SPEAKER_00: I mean, guest expectations I think have always been high in the luxury segment.
• 8:42
  SPEAKER_00: I think they've evolved to be even more demanding.
• 8:46
  SPEAKER_00: And I think part of that is when you look at, you know, the price point.
• 8:50
  SPEAKER_00: And I think, you know, we we've all seen the big jumps in hotel pricing really from, you know, 2019, you know, and coming out of COVID, because the the demand in travel has picked up substantially, the prices have followed.
• 9:07
  SPEAKER_00: And now you're seeing, you know, hotels in in Europe or in Italy in particular, that, you know, maybe a room in peak times in July and August are 2,000 euros a night just for a room.
• 9:19
  SPEAKER_00: So when people are are spending this kind of of money, they're really expecting, you know, top-notch service, great product, and an overall great experience.
• 9:29
  SPEAKER_00: So I think in a lot of ways, I think that the demands of the luxury consumer have increased when you look at, you know, the price point that they're paying.
• 9:39
  SPEAKER_01: Yeah, I guess the expression I use there is with great rate comes great expectations.
• 9:45
  SPEAKER_01: 100%.
• 9:46
  SPEAKER_01: Yeah.
• 9:47
  SPEAKER_01: And I guess in general, in terms of what you're seeing, what services or amenities are hotels adding in order to meet those expectations to coincide with the huge amount of rate growth over the past five years?
• 10:00
  SPEAKER_00: Everybody's trying to be new and innovative.
• 10:02
  SPEAKER_00: Everybody, I think, is is, you know, coming up with new ideas, trying to anticipate the guest needs before they ask.
• 10:09
  SPEAKER_00: But I I think it's also coming back to, you know, the basics of hospitality, being warm, being genuine, and and really trying to offer that guest a, you know, tailor-made or individual experience that that speaks to them and and and really tugs at their emotions.
• 10:29
  SPEAKER_00: If you're a luxury hotel, you're you're expecting a certain level of fit and finish and amenities at a property.
• 10:36
  SPEAKER_00: But I think the ones that are doing it really, really well are really excel excelling at at service, but service that's that's unique, that's individual, that's tailored, and creating an emotional connection with the guest rather than just a, you know, kind of robotic yes or no sir type of of service.
• 10:57
  SPEAKER_01: Yeah.
• 10:58
  SPEAKER_01: So now uh that brings us up to the present day.
• 11:00
  SPEAKER_01: We're creating these emotional memories and everyone wants to have that individual experience.
• 11:06
  SPEAKER_01: But as you mentioned at the beginning, Small Luxury Hotels now has over 700 hotels in its collection.
• 11:11
  SPEAKER_01: So that'll that already is a lot to choose from.
• 11:14
  SPEAKER_01: And therein, within that portfolio, Small Luxury Hotels has divided it into these collections, I guess is the word.
• 11:22
  SPEAKER_01: So could you walk us through what each one of those collections are and how those really help the consumer decide where they can get that individual experience that they're looking for?
• 11:32
  SPEAKER_00: Yeah, and I think it's a good point when when we talk about collections, it's not SLH, you know, breaking down the hotels into different brands or or categories or what have you?
• 11:45
  SPEAKER_00: It's it's really steering the customer to an experience or or type of hotel that they want.
• 11:52
  SPEAKER_00: So when when we have our considerate collection hotels, for example, it it's not just about sustainability.
• 12:00
  SPEAKER_00: It's is the hotel a cultural custodian, you know, for that destination?
• 12:05
  SPEAKER_00: Is the hotel enriching lives of the local workers?
• 12:09
  SPEAKER_00: Are they giving them a skill set where they can have a better quality of life?
• 12:14
  SPEAKER_00: Obviously, sustainability is a big part of it.
• 12:17
  SPEAKER_00: How are they, you know, looking after the environment?
• 12:20
  SPEAKER_00: Are are they using locally sourced products?
• 12:23
  SPEAKER_00: So it's it's taking the sustainability approach, but bringing it to life with, you know, is it sustaining the community?
• 12:32
  SPEAKER_00: Is it sustaining the culture?
• 12:34
  SPEAKER_00: Is it enhancing, you know, the lives of the workers?
• 12:37
  SPEAKER_00: So it's it's kind of all-encompassing.
• 12:40
  SPEAKER_00: And I think, you know, this day and age, people do have a social conscience and some of them want to make sure that the the properties they're they're staying at, you know, have that.
• 12:51
  SPEAKER_00: Then we have the finest collection.
• 12:53
  SPEAKER_00: Finest collection is a little bit different because what we've done there is is really taken our um, I don't want to say top hotels, but hotels that have excelled not only in service and and have hit certain benchmarks that we feel make them one of the finest hotels within the the SLH portfolio.
• 13:14
  SPEAKER_00: That really is only about 5% of our torque portfolio.
• 13:18
  SPEAKER_00: And then the last collection, which we just launched, is the well-being collection.
• 13:22
  SPEAKER_00: And again, it's it's it well-being is is top and front of everybody's mindset these days.
• 13:28
  SPEAKER_00: Everybody's trying to, you know, do things to help them live longer, but also it gives them a quality of life.
• 13:36
  SPEAKER_00: So when we talk about wellness, it's not just about the spa experience and and going and having a treatment.
• 13:42
  SPEAKER_00: It's that whole mind, body, and soul enrichment that that these hotels can deliver to the customer.
• 13:51
  SPEAKER_00: And it and again, it's it's it's not about you know the typical all-inclusive wellness where you're going in with a strict regimented program, but it's a place where people can go to kind of enrich their lives in the areas that they they want to do.
• 14:08
  SPEAKER_00: Well, like I said, whether it's it's mind, body, or soul or a combination of all three.
• 14:13
  SPEAKER_01: Yeah.
• 14:13
  SPEAKER_01: And uh I guess that's the individual spirit of each hotel is you know, within that framework of well-being, of considerative finest, the hotel can then still decide how it wants to fit within that collection, within that that banner.
• 14:27
  SPEAKER_00: And we try to do that with all of our hotels, Adam.
• 14:29
  SPEAKER_00: I think if you go on the SLH website, we have different categories.
• 14:33
  SPEAKER_00: So a hotel can be a ski hotel, it can be part of culinary, it could be part of both, but really identifying the attributes of each and every hotel that will appeal to the customer based upon their individual needs.
• 14:47
  SPEAKER_01: Yeah.
• 14:48
  SPEAKER_01: Uh, so that's all for the hotel collections.
• 14:51
  SPEAKER_01: What sort of work do you do in your role to help educate the customers on these collections and to really help to bring together guests with unique preferences to find the individual hotel that suits their needs best?
• 15:06
  SPEAKER_00: Well, I think it all starts with how we position the hotel, whether it's through the sales team, through speaking with advisors, through slh.com.
• 15:17
  SPEAKER_00: I mean, even going to our voice reservation agents.
• 15:20
  SPEAKER_00: You know, we're probably one of the few companies left that still employ our own voice reservation agents.
• 15:27
  SPEAKER_00: We don't outsource it.
• 15:29
  SPEAKER_00: These are our SLH trained employees.
• 15:32
  SPEAKER_00: And what's unique about them is they they really try to get to know the guest or the travel advisor that's booking on behalf of the guest and finding out little things about the guest.
• 15:43
  SPEAKER_00: What are they like in a hotel?
• 15:45
  SPEAKER_00: Is there a particular color of rooms they're looking for?
• 15:48
  SPEAKER_00: Are they adventurous?
• 15:49
  SPEAKER_00: You know, so really diving deep into the customer's kind of attributes, what they're traveling for, who are they traveling with, and to use all of those things to, you know, offer them up, you know, the appropriate hotel that's going to allow them to have their most unique experience possible.
• 16:09
  SPEAKER_01: Yeah.
• 16:09
  SPEAKER_01: Now my follow-up question to all this is probably the hardest question for you.
• 16:14
  SPEAKER_01: Do you have any favorites?
• 16:16
  SPEAKER_00: I mean, I have a lot of favorites.
• 16:17
  SPEAKER_00: It's it's like when you talk about your kid.
• 16:18
  SPEAKER_00: Who's your who's your favorite kid?
• 16:20
  SPEAKER_00: Yeah.
• 16:20
  SPEAKER_00: I think when you when you look at each child or each hotel, they all have different attributes, they all have different personalities, they all have a different soul.
• 16:30
  SPEAKER_00: I think for me, when I when I look at at hotels that I've come away from and really been blown away by are the ones that, you know, I'm not going to stop talking about, whether it was a little experience, whether it was an amazing beachfront that they offer.
• 16:47
  SPEAKER_00: I think it's it's that kind of feeling that tugs at your emotions that you were just blown away by by something or someone at the hotel that makes it really, really unique.
• 16:59
  SPEAKER_00: You know, we have we have a property in in Todo Santos which sits on probably one of the most amazing beaches in Mexico, but you can sit out there in the morning on on your you know on your your porch at Villa Santa Cruz and and have a cup of coffee and not see a soul on the beach.
• 17:15
  SPEAKER_00: And it's just serene and you know, quiet.
• 17:18
  SPEAKER_00: You don't see beaches like any that anymore.
• 17:21
  SPEAKER_00: So it's experiences like that that that make a lot of our properties very unique.
• 17:25
  SPEAKER_01: Yeah.
• 17:26
  SPEAKER_01: So collections, are there any other initiatives related to that that you want to mention?
• 17:32
  SPEAKER_00: We are exploring some other collections.
• 17:34
  SPEAKER_00: I'm not at liberty to to talk about those at the moment, but I think I think as we evolve as a as a company and as a brand, I think you'll see more collections, you know, come from SLH.
• 17:46
  SPEAKER_00: But I think we're we're very careful in the way we do collections.
• 17:50
  SPEAKER_00: We want to make sure that, you know, we're not just throwing hotels into certain, you know, or pigeonholing them into certain collections.
• 17:58
  SPEAKER_00: We're really vetting and making sure that they have all the attributes to be part of the collection.
• 18:05
  SPEAKER_00: Rather than just saying, okay, we have 80 some odd considerate hotels.
• 18:10
  SPEAKER_00: These hotels are going through some rigorous vetting to make sure that, you know, each collection, each hotel that's part of the collection is is true to that collection.
• 18:21
  SPEAKER_01: Um, and one, I guess, initiative we can talk about is the Hilton partnership, that I guess is now two years old.
• 18:30
  SPEAKER_00: Yep.
• 18:31
  SPEAKER_00: We just passed the two-year law.
• 18:33
  SPEAKER_00: It it's been a little over two years, but we went live with the first hotels in July of 2024.
• 18:40
  SPEAKER_00: So, really live about a little over two years with our our Hilton partnership.
• 18:46
  SPEAKER_00: And it's it's been a great success, both for SLH for the hotels.
• 18:50
  SPEAKER_00: I also think for the Hilton customers, because again, it goes back to what we were discussing earlier, Adam, about how to acquire new customers and how to reach new audiences.
• 19:01
  SPEAKER_00: What happens between SLH and Hilton when a hotel comes into the network, you're automatically plugged into kind of a built-in audience.
• 19:12
  SPEAKER_00: I mean, Hilton, you know, honors members now surpass 200 million.
• 19:16
  SPEAKER_00: So a manage, imagine you're a 25, 30 room hotel off the beaten path, or or maybe people don't know about it.
• 19:24
  SPEAKER_00: So now you're you're plugging into this massive network of travel customers who, you know, have an affinity to travel.
• 19:33
  SPEAKER_00: And, you know, from day one, you're getting this exposure that you really can't get anywhere else as an independent hotel.
• 19:41
  SPEAKER_01: Yeah.
• 19:41
  SPEAKER_01: Uh so there's so much that can be said about the uh the points redemptions and uh, I guess the the data plumbing to make that work, which was probably quite complex.
• 19:52
  SPEAKER_01: But what I'm wondering is just how does that access to Hilton honors really open things up to more synergies amongst the at the corporate level?
• 20:03
  SPEAKER_01: So not just the points, not just Hilton guests seeing and access into small luxury hotels, but going back to where we started in terms of saying, well, a 20 to 40 room property has these costs that SLH really helps them to bring to the world stage.
• 20:21
  SPEAKER_01: How do you work with Hilton Corporate to then really, really turbocharge all these various hotels that are independent and really need help to get front and center with a global audience?
• 20:32
  SPEAKER_00: I I think if you if you just look at Hilton.com, I I forget the the exact number, but they get billions of page views on an annual basis.
• 20:41
  SPEAKER_00: You know, so if you're a hotel that's sitting there as independent, you don't have, you know, a lot of you know residual funds to spend on on digital advertising and what have you, you know, and and you get into the situation, love or hate them, but a lot of independent hotels rely on OTAs because that's the easiest way for them to reach a large audience.
• 21:04
  SPEAKER_00: But on the flip side, the margins are high with OTAs.
• 21:07
  SPEAKER_00: The guest is is primarily shopping on price.
• 21:11
  SPEAKER_00: I don't know if necessarily you're gonna have an avid traveler who uses an OTA.
• 21:16
  SPEAKER_00: But then you you you you plug into a Hilton portal with SLH and you're reaching not only the the right type of customers, but you're reaching a customer that has the affinity to travel.
• 21:29
  SPEAKER_00: Because if if you look at at honors members and and you know what it takes to earn a you know one night stay at either a Hilton or an SLH hotel, it's somebody who's who's traveling quite extensively.
• 21:43
  SPEAKER_00: So again, I think it's it's opening you up to a large customer base, but also a large customer base of people who have an affinity for travel and you know are are are lack of a better word, probably more savvy travel.
• 22:00
  SPEAKER_00: That are that are looking for different experiences.
• 22:03
  SPEAKER_01: Yeah, as you said, the the right type of guests, which there is the benefit from having some channel shift away from the OTAs, which, as you said, is high commission to lower the city.
• 22:14
  SPEAKER_00: I think it's not even just a commission, Adam.
• 22:16
  SPEAKER_00: I think it's it's also the loyalty.
• 22:18
  SPEAKER_00: When you have somebody who's brought buying on price, they're they're just buying, all right, what hotel kind of fits my need and fits within my budget?
• 22:26
  SPEAKER_00: I don't care what what brand it is.
• 22:28
  SPEAKER_00: I think when you have a lot of these these loyalty programs, it's people who have an affinity not only to travel, but that they're loyal to to the properties within the portfolio.
• 22:39
  SPEAKER_00: If they have a good experience, they're going to keep you know coming back.
• 22:43
  SPEAKER_00: And I and I the the other thing is, you know, when when you look at the SLH portfolio, and we touched on it earlier about independent owners and you know, people who have built these these properties for you know passion or to share the experience or the destination, you know, that doesn't go away when you plug into to SLH or or or with Hilton.
• 23:04
  SPEAKER_00: They fully keep their independence, they fully keep their identity, and they're not, you know, told what to do, what to think, or or how to present their product.
• 23:14
  SPEAKER_01: Yeah.
• 23:14
  SPEAKER_01: Well, that makes perfect sense to me.
• 23:16
  SPEAKER_01: So where does the partnership go next between Hilton and small luxury hotels?
• 23:20
  SPEAKER_00: Well, obviously we we it's growing.
• 23:22
  SPEAKER_00: We we just launched that SLH hotels now have access to Hilton supply management.
• 23:28
  SPEAKER_00: So that opens up the capabilities for for them to, you know, save on purchasing, which again could could could be of great value to you know an independent owner that doesn't have you know access to some of these purchasing powers.
• 23:42
  SPEAKER_00: And there are other programs that we're looking for that, you know, will will bring value to to these individual owners as as the partnership progresses.
• 23:51
  SPEAKER_01: Yeah, that's great.
• 23:53
  SPEAKER_01: Could you take a quick minute to explain what the Hilton supply supply management program is?
• 24:00
  SPEAKER_00: So the Hilton Supply Management, it's it's it's basically Hilton aggregates buying not only between their their hotels, but other hotels that participate in Hilton supply management.
• 24:12
  SPEAKER_00: So it it could mean better pricing on produce.
• 24:15
  SPEAKER_00: It could be better pricing on insurance.
• 24:18
  SPEAKER_00: So, you know, it it's almost a cooperative buying where, you know, I equate it to going to Costco because Costco buys in bulk that the consumer that goes to Costco can save, save some money.
• 24:31
  SPEAKER_01: Yeah, no, that's a perfect analogy.
• 24:33
  SPEAKER_01: I just had to throw that in as a side for people that weren't aware of the value there.
• 24:37
  SPEAKER_01: So one thing you mentioned earlier to go back to this whole idea of OTAs comes back in broad to distribution and how that's changing now for distribution discovery with AI travel search.
• 24:50
  SPEAKER_01: So you having a viewpoint into so many different hotels around the world, how are you seeing AI search change how travelers are discovering hotels?
• 25:01
  SPEAKER_00: I I think what's happening also with with AI and changing it is there's much more content out there.
• 25:07
  SPEAKER_00: You know, we moved away from SEO to GEO in terms of giving the hotels visibility.
• 25:13
  SPEAKER_00: You know, we're we're earning media is a key way to do this.
• 25:17
  SPEAKER_00: You know, I think so.
• 25:22
  SPEAKER_00: You know, for example, we launched Swoon, which is the the SLH magazine, which is bringing stories about the hotels, the destination, the personalities within these hotels, it's bringing them to life.
• 25:34
  SPEAKER_00: We're developing studio by SLH with is showcasing our portfolio digitally digitally through photography and and videography.
• 25:42
  SPEAKER_00: And I think the more content that SLH is putting out there on behalf of the hotels, just by doing that and also affiliating with Hilton and their website, it just gives us more visibility in AI search, but also giving more detailed information.
• 26:00
  SPEAKER_00: Because as you know, AI is going out there and it's searching all these databases and bringing back the customer that in the information that it finds on the internet.
• 26:09
  SPEAKER_00: So the more that we can do from a visual perspective, from the storytelling, telling about the hotels and the destination, it it helps us give clear, structured, and relevant content, which then translates into better AI-generated content for the hotels.
• 26:26
  SPEAKER_01: Yeah.
• 26:27
  SPEAKER_01: And with AI search, you know, the big thing we're seeing is that hotels are putting in their own sort of niche prompts and sort of saying, you know, look, I'm looking for a boutique hotel here.
• 26:39
  SPEAKER_01: I want it to have such and such a restaurant, nice spa, and also be sustainable.
• 26:44
  SPEAKER_01: Are you offering those sorts of services or doing those sorts of travel searches on behalf of hotels in order to help them better express their own identities to reach to get more AI citations?
• 26:56
  SPEAKER_00: Yeah, and I think that goes back to what we were talking about storytelling.
• 26:59
  SPEAKER_00: I think that's something L SLH has been doing, you know, even before AI was a big topic, because we felt that our hotels had the story to tell, whether it's about the person that that built the hotel, about the destination, you know, I think the the customer today is looking for that backstory.
• 27:19
  SPEAKER_00: They're looking for something unique.
• 27:21
  SPEAKER_00: They're looking for something that their friends don't know about yet because everybody wants that.
• 27:26
  SPEAKER_00: I'm gonna be the first to post this on my my Instagram feed.
• 27:30
  SPEAKER_00: So again, a lot of what we're doing behind the scenes, whether it's through Swoon and you know, other ways that we talk about hotels digitally now, it's it's to help in you know enhance that AI search.
• 27:44
  SPEAKER_00: I mean, even when you look at us compared to some of our competitors out there, I think we're probably the first to hire our own photographers and videographers that are SLH employees that go out on behalf of our hotels.
• 27:57
  SPEAKER_00: Because again, it's it's the more content you create, the the the better you're gonna you're gonna come up.
• 28:03
  SPEAKER_01: Yeah, and uh the more trusted content, I guess, for for AI is the key word there because that is a big part of it, which is a little bit harder to measure.
• 28:11
  SPEAKER_01: But you know, SLH and Hilton being such trusted websites, high traffic websites, that does play into it.
• 28:17
  SPEAKER_01: One other element to discovery and distribution that maybe isn't as glitzy as AI search, but is nevertheless having a revival, let's say, is the whole idea of travel advisors.
• 28:32
  SPEAKER_01: We're seeing things like fora, if people are familiar with the Uber for travel advisors really gaining uh gaining dominance.
• 28:39
  SPEAKER_01: And everyone thought that, oh, with AI, we're not going to need travel advisors anymore, but it's become the exact opposite.
• 28:44
  SPEAKER_01: People are looking to travel advisors more and more.
• 28:47
  SPEAKER_01: So, how does SLH work with travel advisors at present?
• 28:52
  SPEAKER_00: Well, I SLH has been working with travel advisors, you know, probably since day one.
• 28:57
  SPEAKER_00: I think when you look at SLH's business, travel advisors, you know, make up the bulk of our business, believe it or not.
• 29:05
  SPEAKER_00: So we we are at the forefront of working with travel advisors.
• 29:09
  SPEAKER_00: And I I I think you you know, you said there's a a resurgence.
• 29:14
  SPEAKER_00: I think they've always been there, and I think they've always been strong producers.
• 29:19
  SPEAKER_00: But I think what's happening now is this is going back to AI and and some of the the internet being out there, there's a lot of noise.
• 29:28
  SPEAKER_00: And, you know, I think the people with means, they're time-starved.
• 29:32
  SPEAKER_00: So they're looking for people to help them get through that noise.
• 29:36
  SPEAKER_00: They're looking for a trusted partner to, you know, help them navigate all the noise that's out there and really find them the products and and services that they're looking for.
• 29:48
  SPEAKER_00: When when I look at SLH and what we're doing, I mean, we're we're meeting with advisors pretty much on a continual basis, whether it's one-on-one meetings, whether it's at, you know, different shows, we do webinars on a regular basis, fam trips.
• 30:04
  SPEAKER_00: Anything we can do to present our product to advisors, we're we're doing on a regular basis.
• 30:11
  SPEAKER_00: But I think what we do a little bit differently, you know, again, compared to others, is we're really cultivating these one-on-one relationships with the advisors.
• 30:21
  SPEAKER_00: And yes, we do work with Fora Corporate or SmartFlyer Corporate and a lot of these other big groups that have a lot of advisors, but it's really getting down and sitting with the individual agents, finding out about their customers, trying to match them with product that fits their customer needs.
• 30:40
  SPEAKER_00: But also, advisors are a great source for us because they're out there a lot and they're always recommending hotels to us.
• 30:46
  SPEAKER_00: They'll say, hey, I was just at XYZ destination.
• 30:50
  SPEAKER_00: I think this is the perfect SLH hotel for you.
• 30:53
  SPEAKER_00: You need to contact them because they they would be a great addition to your portfolio.
• 30:57
  SPEAKER_00: So again, they've always been at the forefront of our business and we're actively in front of them on a daily basis.
• 31:03
  SPEAKER_01: Well, yeah, I mean, that's uh that's an incredible relationship.
• 31:05
  SPEAKER_01: And I mean, it it uh again, I was just thinking of all the hours it takes to actually maintain that and keep those relationships going, but it speaks to travel itself because travel's all about relationships, one-to-one going ahead.
• 31:17
  SPEAKER_00: 100%.
• 31:18
  SPEAKER_00: You you go to a show like ILTM or LE Miami or Virtuoso Travel Week, and you know, those days start at eight in the morning all the way through dinner, and you're probably, you know, finishing at 10 30 and getting up and doing it again for for three to five days straight.
• 31:33
  SPEAKER_00: But I think the people that are in our business, and particularly, you know, I think the SLH, you know, sales team, I mean, they're they have a passion just like their clients, and they they love what they do, and a lot of times it it doesn't seem like work because you're you're doing something you you love on a daily basis.
• 31:52
  SPEAKER_01: Yeah, no, that's very true.
• 31:54
  SPEAKER_01: So now looking ahead, SLH has over 700 properties.
• 31:58
  SPEAKER_01: Can you speak to any upcoming additions or new countries where uh where you're gonna be launching launching new additions with within?
• 32:07
  SPEAKER_00: We're we're always looking for for the newest and and best product to come along for us.
• 32:13
  SPEAKER_00: But I think when when you look at SLH now with 700 plus hotels, I think our our aim going forward really is to now fill in the gaps, maybe where we currently don't have a product or or to you know find new destinations that custom our customers may be looking for.
• 32:33
  SPEAKER_00: We have a strong focus, obviously, on the Americas market, simply because if you if you look at the portfolio, it only makes up about 22% of our total portfolio.
• 32:44
  SPEAKER_00: So we've had some strong growth in not only the US, but in Latin America.
• 32:49
  SPEAKER_00: And I think again, going into 27, these two areas will be good focus for us.
• 32:54
  SPEAKER_00: This year we've added properties.
• 32:56
  SPEAKER_00: If I look at five years ago, we had a handful of properties in California.
• 33:01
  SPEAKER_00: I think now we're up to about 12 to 14 properties in California.
• 33:05
  SPEAKER_00: So yeah, big, big expanse there.
• 33:07
  SPEAKER_00: Obviously, Latin America is big for us.
• 33:10
  SPEAKER_00: We had a strong push in the Caribbean, where I think we're we're now on every island in the Caribbean and and some great new additions.
• 33:17
  SPEAKER_00: You know, the Appalachian group in Healsburg, they came on board with us this year and they're adding their second property with us down near Palo Alto with Morgan Hill.
• 33:27
  SPEAKER_00: So again, it's it's working with companies or our owners that are that are new to the market.
• 33:33
  SPEAKER_00: We're working with a current project in New Orleans, so it'll probably be one of the newest boutique hotels opening up in New Orleans later this year.
• 33:42
  SPEAKER_00: So again, you know, and then looking at up-and-coming destinations.
• 33:46
  SPEAKER_00: You know, Portland, Maine, for example, coming out of COVID, that part of the world was was really growing and people were gravitating and wanted to be out in nature.
• 33:56
  SPEAKER_00: And, you know, Portland really didn't have a a big luxury hotel market.
• 34:01
  SPEAKER_00: We we found an owner who was building a property up there, the Longfellow.
• 34:05
  SPEAKER_00: And, you know, it it it's again, it's looking for properties that are adding, you know, kind of a niche in a in a market that's been underserved for for a period of time.
• 34:15
  SPEAKER_01: Yeah.
• 34:16
  SPEAKER_01: Uh so in a general sense, how is boutique luxury evolving?
• 34:21
  SPEAKER_01: Where is it going to next?
• 34:23
  SPEAKER_00: I think it's it's not so much evolving.
• 34:25
  SPEAKER_00: I think what we're seeing now is a a resurgence of boutique luxury hospitality.
• 34:32
  SPEAKER_00: I think it's always been there, but I think as guests or or consumers taste change and and are gravitating towards this now, I think you're you're gonna see a bigger focus on it.
• 34:44
  SPEAKER_00: What we're also seeing is because it is a trend or or it is a demand in high demand now, everybody's calling themselves boutique hotels.
• 34:53
  SPEAKER_00: And I'm sorry, if you're a corporate-owned hotel that has 250 rooms, not so much boutique anymore.
• 35:00
  SPEAKER_00: So I I think we have to be careful as an industry, what is really, you know, truly a boutique hotel versus, you know, the marketing ploy behind it.
• 35:11
  SPEAKER_01: Yeah.
• 35:12
  SPEAKER_01: Um, what do you think of the term lifestyle?
• 35:15
  SPEAKER_00: It means a lot of different things.
• 35:17
  SPEAKER_00: I'm not sure if lifestyle is luxury are the same thing.
• 35:20
  SPEAKER_00: Where I see the evolution going with boutique, though, it's it's product that's outside of the the traditional boutique hotel space.
• 35:30
  SPEAKER_00: You know, for example, this year we added, you know, a few what I would call boutique ships, you know, very luxurious 12-room ships that or 12 suites, 12 suite ships that that are very unique.
• 35:44
  SPEAKER_00: You know, people are looking for those, you know, bespoke experience on a smaller scale, not just in hotels anymore.
• 35:51
  SPEAKER_00: It it it could go to ships, it could go to tented camps.
• 35:55
  SPEAKER_00: So I think you're you're seeing an evolution of of boutique, but not necessarily just in hotels.
• 36:02
  SPEAKER_00: I think it's other travel experiences as well.
• 36:05
  SPEAKER_00: Wow.
• 36:06
  SPEAKER_01: Uh so in a general sense, to close out here, what what are you excited about?
• 36:11
  SPEAKER_00: Well, I'm excited about new destinations, new hotels, unique experiences.
• 36:15
  SPEAKER_00: For me, I I think I have one of the best jobs out there because not only do I do I look over sales in the Americas, but I also, you know, have the job where I can go out and find these hidden gems.
• 36:27
  SPEAKER_00: So when I find a hotel that's kind of off the beaten path and nobody's ever heard of, I mean, I I love it.
• 36:34
  SPEAKER_00: I I love to travel, I love to find these unique places, and I'm I'm always blown away that all of a sudden I'll find a hotel and I find out they've been open for two years, and I'm like, how did I not hear about you?
• 36:46
  SPEAKER_00: Um, so when I find those properties, it's even more inspiring.
• 36:50
  SPEAKER_01: Yeah.
• 36:50
  SPEAKER_01: No, it's very cool.
• 36:52
  SPEAKER_01: So to close out, is there anything important that we haven't discussed about that you want to mention?
• 36:57
  SPEAKER_00: No, I I I would tell people to keep an eye on SLH.
• 37:00
  SPEAKER_00: I think there's great things ahead for us.
• 37:03
  SPEAKER_00: You know, if I look at at where we were 10 years ago when I started with the brand to where we are now, and I think we'll will continue to to evolve.
• 37:12
  SPEAKER_00: I think, you know, we're we're gonna be one of the strongest players out there in this market.
• 37:16
  SPEAKER_01: That's a great way to finish off.
• 37:18
  SPEAKER_01: Kennan, thank you so much for coming on.
• 37:20
  SPEAKER_01: It's been a delight to hear about everything you're working on in the bright future for small luxury hotels and boutique hospitality overall.
• 37:29
  SPEAKER_01: Thank you.
• 37:29
  SPEAKER_00: Excellent.
• 37:30
  SPEAKER_00: I appreciate it.
• 37:30
  SPEAKER_00: Um thank you for your time.
• 37:32
  SPEAKER_01: Thanks.