NEW YORK—As the boutique hotel market and customer base evolve and diversify, Sixty Hotels hopes to change with them, said Jason Pomeranc, co-founder of the new brand formerly known as Thompson Hotels.
Pomeranc and his partners—brothers Michael and Larry, and Stephen Brandman—founded Thompson Hotels and grew the portfolio to 12 properties. In 2011, Thompson merged with Joie de Vivre Hotels and Geolo Capital to form Commune Hotels & Resorts. In August, Pomeranc and his partners split from Commune, retaining four properties from the original Thompson portfolio. They launched Sixty to rebrand the hotels.
Three of the four hotels were named Thompson (the other is 6 Columbus), a brand retained by Commune in the sale. The four properties—three in New York and one in Beverly Hills, California—will take the Sixty name in January.
“The market has changed, and some of the locations where these hotels are located have changed for the better,” Pomeranc said. “We’re a more mature brand, and the level of service, aesthetic and identity level will be a touch more sophisticated. These neighborhoods have evolved, particularly since we (originally) opened these projects. There is a much more diverse audience today that is more internationally diverse than was the case when we opened these hotels.”
Pomeranc said the target market of boutique customers continues to widen. Boutique guests come from a broader range of ages and economic demographics, and a variety of price points are now available in the sector.
“You know the old cliché: it’s not your parents’ hotel anymore; well in the case of the boutique world, it’s not your kids’ hotel anymore. The whole audience of travel is much more open to staying in an independent hotel or a boutique-branded hotel,” he said.
Global acceptance
Pomeranc credits the major hotel brand companies that have launched boutique brands for expanding the segment’s appeal. He said today there is general acceptance globally among travelers, including business travelers, that boutique hotels are part of the travel landscape.
“Boutiques are not catering to a small percentage of the traveling public; they’re open for everyone to try,” he said.
Although the market for boutique properties has diversified, Pomeranc stressed that each Sixty Hotel will maintain its uniqueness and authenticity.
“We must focus on the idea that each individual location can’t be everything to everyone,” he said. “You must be true to yourself and remember where your price point is and where your target audience primarily is and be strong in that messaging. An audience beyond that circle can develop naturally, but if you try to be everything to everyone you dilute your product.”
He said customers won’t initially notice many changes in the hotels, although as time progresses the company plans to implement new initiatives and guest touch points—everything from the product to amenities to aesthetics—that are localized to each hotel.
Expansion plans
The Sixty name comes from 60 Thompson, Pomeranc’s first hotel, which he opened in New York’s SoHo neighborhood in 2001.
“We thought it was important to reflect the heritage of the brand and the evolution of our careers, so referencing back to 60 Thompson was important, both emotionally and from a brand story perspective,” Pomeranc said. “At the same time, it gives us enough flexibility to grow and build around a name that allows us to turn the page to something new going forward.”
Pomeranc said the chain will grow in several directions. Primary expansion targets will be what he called “global capitals,” such as Los Angeles, Miami, London and New York. He also has interest in “global cultural capitals” in western Europe, the United States, Canada, Mexico and elsewhere.
“We believe there are cities that are evolving into centers of media, technology and leisure that our audience craves,” Pomeranc said. “They’re maturing very quickly, and there is a lot of interest, wealth and activity in these markets. Places like Berlin, Austin (Texas) and other areas in the U.S., as well as internationally.”
Resorts are another focus for expansion, particularly locations where existing markets with hotels, such as New York, act as feeders of potential guests.
Sixty’s plans for expansion come as the U.S. boutique market continues to perform well. According to STR, the parent company of Hotel News Now, occupancy year to date through September for hotels that identify as boutiques was 75.1%, up 2.7% over the same period last year. Average daily rate was up 4.8%, and revenue per available room rose 7.6%.
Setting the record straight
Pomeranc said there are misperceptions about the company’s split with Commune, a company formed in 2011 as a merger between Thompson and Joie de Vivre, which was owned by Geolo Capital.
“We merged with Joie de Vivre because Geolo had capital for us to grow. We grew; we created a pipeline together and created value as a company,” he said. “We wanted to benefit from that value and exited for what we believe was a healthy and worthwhile multiple. We think Commune got value with the brand, and it should be a win-win for everyone.
“I’m not sure why people are looking for a greater degree of drama than that. It is a simple case of buying and selling. There are no villains, and it’s a benefit for both sides,” he said.