SH Hotels & Resorts has a robust development pipeline with plans to add 20 properties by 2028. Could you share some insights into the strategic considerations that guide your development decisions, particularly in terms of location and brand differentiation?
Our strategic considerations focus on several ideas.
- We approach every project through the lens of the guest as well as ownership. From a guest-experience perspective, we look at the appeal of the market, where demand comes from and if we can program the property in a manner that aligns with the brand ethos and the needs of the target guests.
- We also analyze the viability of the opportunities we assess to ensure our partners in the ownership community can reasonably achieve their goals for their investments. That includes a factor of market performance and our brand’s performance potential versus the development’s cost and reasonable expectations for returns.
- For Treehouse Hotels this assessment leads to alignment in the top global markets with a focus on neighborhood-centric locations in vibrant, growing cities; for 1 Hotels & Homes we aim for equal representation of urban and resort locations in the top markets; and, for Baccarat Hotels & Residences the top premiere luxury destinations globally, which are predominantly urban locations and iconic resort destinations.
As SH Hotels & Resorts continues its global expansion, which new markets do you see as particularly promising for the growth of your brands, and what factors make these markets attractive?
We started as a US-centric company, but we have seen great interest and success as we expand globally. We are focused on a few key strategies. Cementing our place in the American market as a dominant and differentiated leader in the luxury and lifestyle space. This will evolve into the Caribbean, Central America, and ultimately South America in time. Equally, we are focused on the diversification of our portfolio, and becoming a globally recognized leader, with robust expansion goals in Asia Pacific, Europe, and the Middle East. We select markets based on their ability to drive the performance and positioning we look for, but also markets with a local demographic that matches our brand ethos and we can confidently introduce ourselves to as an aspiring lifestyle.
We opened 1 Hotel Haitang Bay Sanya in 2020, our European flagship in London’s Mayfair last year, and will be opening 1 Hotel Copenhagen and 1 Hotel & Homes Melbourne next year. We recently announced 1 Hotel & Homes San Miguel de Allende, adding to 1 Hotel Cabo in the pipeline and maintain several projects under development for Baccarat Hotels, including in Rome, Florence, Dubai, Riyadh, and the Maldives. Plus, the upcoming Baccarat Residences in Brickell (Miami) will mean we have four projects actively selling branded residences under the Baccarat brand. Treehouse Hotels will be opening locations in Manchester and Silicon Valley in the coming months, with active projects in Brickell (Miami), Riyadh and Adelaide and progress in a number of U.S. markets.
With SH Hotels & Resorts’ significant presence in North America, what are your plans for further expansion in this region? Are there specific cities or regions you are targeting for new developments or acquisitions?
We have several North American hotel and residences projects in our pipeline, including 1 Hotel & Homes San Miguel de Allende, 1 Hotel Austin, 1 Hotel Seattle, 1 Hotel Cabo, Baccarat Residences Brickell, Treehouse Brickell, and the soon-to-open Treehouse Hotel Silicon Valley. Of course, we are always looking at opportunities for all three brands in North America including a particular focus on resort destinations such as wine country, ski resorts, Mexico resorts, drive-to destinations, and Costa Rica as well as expanding in top urban markets such as Chicago, Boston, DC, Dallas, Mexico City and San Diego.
SH Hotels & Resorts is known for its strong commitment to sustainability. Can you elaborate on some of the innovative sustainability practices being implemented in new developments and how they align with the company’s overall mission?
Sustainability is incorporated from the very beginning of every project. At 1 Hotels, sustainability has always been integral to the DNA that makes up our brand, the thread woven throughout all our hotels.
We practice sustainability in all aspects of what we do, from Biophilic Design to Zero-Waste food & beverage programs and a focus on Mind & Movement & Wellness. Each property is conceptualized using biophilic design principles, which focus on connecting to the natural environment. The moment a guest walks through the door, nature guides the journey as they are immersed in the local community.
We are also focused on minimizing waste from every angle. Our Food & Beverage programs at all our properties are dedicated to zero waste, and our culinary and beverage teams focus on reducing food waste with the goal of minimizing overall carbon/climate impact. We’re working towards our short-term goal of 70% waste diversion from landfills and incinerators, keeping in mind our long-term target of 90% or greater total waste diversion in accordance with USGBC’s TRUE Zero Waste certification. Our kitchens and bars prioritize hyper-local and sustainably sourced food, local beer, biodynamic wine and zero-proof and craft cocktails. Across all our operations, we’ve developed programs designed to eliminate waste. All 1 Hotels are minimum LEED or BREEAM certified, or certification is underway. All 1 Hotels U.S. properties are 100% Carbon Neutral certified or certification is underway, and to date, we’ve offset 27,441 tons of CO2.
Additionally, wellness and a focus on one’s personal wellbeing is a natural extension of the idea of being in harmony with nature. Our properties feature extensive experiential programming that focuses on connecting with nature and is designed to maintain mind, body and spirit.
How is SH Hotels & Resorts leveraging technology to enhance guest experiences and operational efficiency in its new developments, and what role does technology play in your sustainability efforts?
Implementing impactful sustainable practices is a high priority, and technology plays a big role. At SH Hotels & Resorts, we have identified several key areas where these practices can make a significant difference.
Energy efficiency is a top priority. Our properties use LED lighting, energy-efficient appliances, and smart climate control systems to reduce energy consumption. Additionally, we are increasing our use of renewable energy sources, such as solar and wind, to further decrease our dependence on fossil fuels.
Water conservation is another critical area. We have installed low-flow fixtures, rainwater harvesting systems, and high-efficiency irrigation across our properties. For example, the 1 Hotel Hanalei Bay has implemented a 7,400-gallon rainwater harvesting system that significantly reduces water usage.
Waste reduction is achieved through comprehensive recycling, composting, and upcycling programs. Our goal is to achieve TRUE Zero Waste certification across all properties, with some already on track to divert over 90% of waste from landfills. Initiatives like ‘A Supper That Sustains Us’ and our partnership with Copia, which has donated over 25,000 pounds of food, exemplify our commitment to minimizing waste and supporting local communities. Through our Certified Sustainable Gatherings program, we host zero-waste events for our clients by sourcing sustainable materials, eliminating single-use plastics, lowering carbon emissions, and diverting over 90% of waste from landfills. To date, the average diversion rate from these meetings and events is 97%.
In terms of guest experience, we have realized that our guest is seeking an eco-friendly approach and that is why our brand has resonated so well. In addition to design and programming, our 1 Hotels App allows guests to customize their stay, offering access to features like mobile check-in, ordering in-room dining, special requests, and daily happenings. Our MISSION membership program rewards allow guests to give back to environmental and social causes around the world.
SH Hotels & Resorts has a portfolio of distinct brands, each with its own unique identity. How do you approach creating and evolving the brand story for new properties, especially when entering new markets or cultures, to ensure they resonate with local communities and global travelers?
Whether in cities or resort towns, we always look at every property individually and are deliberate and thoughtful based on our priorities and goals. We are always focused on staying true to each brand’s ethos while providing the best customer experience and a unique sense of the local surroundings.
When transforming a pre-existing building, we have to balance the environmental impact of the changes we are making. We try to deconstruct rather than demolish to minimize impact. Whether renovation or new construction, we are always looking at how we can source locally and adhere to our principles.
We also strive to incorporate nature in our urban 1 Hotel locations, which gives us a wonderful opportunity to highlight each city’s natural hidden gems and create an oasis. Many of our city properties are intentionally located near local parks or other natural landmarks, like 1 Hotel Central Park, 1 Hotel Mayfair by The Green Park, 1 Hotel Brooklyn Bridge on the East River, and more. Several of our city locations feature live plant facades, which signals that we are a retreat from the noise and hustle of the city. At our London property, for example, guests are surrounded by native plants and greenery (more than 200 local and regional plant species thrive throughout the property) and reclaimed locally sourced materials. At 1 Hotel Central Park, 36,000 ivy plants blanket the building, each living in a 100% recycled pot and working diligently to produce oxygen, absorb greenhouse gasses, reduce the surface temperature of the building in the summer, and insulate it in the winter. Ironically, in Hanalei Bay, the property we inherited was very much a cement structure. We opened it up and blended it into the mountainside so the property is truly one with its surroundings.
Additionally, we are always sensitive to location and culture by blending in and making sure to be respectful. This comes with supporting local nonprofits, commissioning local artists, and working with small businesses in the area that are aligned with our brand. Our Neighborhood Guides at each property celebrate like-minded brands, cultural points of interest, and areas of natural beauty.
At Baccarat Hotels, we infuse the timeless elegance of the legendary 260-year-old crystal brand with modern sophistication. We create an extraordinary haven in the heart of the city while curating the finest experiences that celebrate the essence of luxury.
At Treehouse Hotels, every detail is imagined through the carefree, optimistic lens of youth and balanced with a distinctly modern sensibility. At Treehouse London each room is perched high in the city skyline and features unique touches and whimsical decor.
