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Investment in Hospitality Projects. Boutique Hotels as a Niche Business

Updated: Feb 5, 2023

Any, even the most trivial idea can be turned into a unique project if you attract talented people with unconventional thinking abilities and the ability to limitless creativity. Such people are very few. This article is devoted to this approach to create projects that will go into the treasury of world design.

Investment Thinking Beyond The Ordinary

Once, when I was still working in China, I happened to meet a very interesting man. A philosopher by mentality, an aesthete, and an entrepreneur of great caliber, he was interested in projects over a billion dollars. Over dinner we spent a wonderful couple of hours of our time. For me such a meeting was a real cornerstone in my career and a new starting point. A lot of things in my mind were turned upside down.

My conversation partner was thinking in such interesting categories that his ideas are deeply rooted in my mind and gave me a lot to think about, as well as my own business ideas. Here are some of his thoughts.

When people reach such heights of business that they no longer care about money, they get ideas that would never occur to most people. For example, one of the obsessions is to build a paradise on earth. “Heaven on Earth”, as my interlocutor understands it, is the creation of such an unusual and comfortable living environment, unique architecture and the infrastructure that has no match in nature. He paid a lot of money to designers, organizing all kinds of competitions. I saw many of those projects, but one of them didn't make the impression my new acquaintance obviously expected. They looked as futuristic cities of some kind, with little in common with a comfortable living environment.

When I asked him what he meant by paradise on earth, he evasively replied that you are designers and you have a special gift, talent and a special vision. He was very willing to fund such a project if someone could visualize the idea.

Then the conversation turned to why all of the so-called 7-star hotels in the world do not meet their requirements at all and cannot be considered as 7-star hotels. His judgments were very interesting. No one gets 7* hotel projects because there is always not enough money to do a grand project.

His dream after “Paradise on Earth” was to create a “Museum Hotel”, where everything had to be on a museum level and art had to surround visitors in all rooms. Moreover, everything that guests could see in such a hotel could be ordered for themselves: from a door handle to an entire interior.

For this purpose, it was planned to gather all the best craftsmen from all over China and implement the project under the Master Designer management, whose position was hypothetically offered to me. What was the ultimate goal of such a project with an astronomical number of zeros in the budget? The ultimate goal was to go down in history and leave behind a monument in the form of such a unique object with the price not important to him.

Ultimate Luxury Interiors

It was after this visit that I began to think about the category of uniqueness. There was an overwhelming desire to create unusual things and think outside the box, to get away from stereotypes.

Of course, to implement a project of his level you need investors with huge amount of money.

At the same time, they must also be aesthetes. Otherwise, they simply cannot understand such projects.

But there is an aftertaste of that conversation. This gave rise to many ideas for investment projects.

One of them was the CELEBRITIES project. This is how the idea of a boutique hotel of an entirely different level was born. In fact it is my version of a museum hotel but in a mini version.

For its implementation, as well as for the implementation of all other projects, I have everything to do this behind my back.

The recently created portal LUXURY WORLD has become an excellent base for supplying everything you need to create luxury interiors and luxury projects. Nearly 25 years of work resulted in the idea for this Internet portal. This source of goods makes it possible to realize any design ideas and extravagances, without thinking about where it all can be made and how much it might cost.

Investment in hotels is a special subject that requires long-term investments. As a rule, such investment for them is to secure the capital, get out of the banking sector and redistribute assets. It is an investment in the future. Hotels usually have a long payback period. The payback period depends on hotel occupancy and room rates.

In our case, of course, the payback period is shortened and the cost of the room is very attractive despite of the fact that all the rooms are suites at the price of an ordinary room in a 5-star hotel.

That said, the whole concept is built in an unusual way. For such prices you can get a full range of services and complete privacy for the guests and a seaside location.

The idea of 'Celebrity' hotel already implies a lot by its ambitious name. In our case, it is a high brand to be given for the hotel name.

It is usually guaranteed an immediate entry into the world of luxury. Hotels are the first and foremost a hospitality industry, whether a customer wants to return again and again or not. For this, every little detail could be fatal if done wrong.

The hotel has 30-50 suites, spread over 100 square meters each. The design of each suite is unique, with no repeat. All rooms are named after famous brands or celebrities from all over the world.

Let's go through the numbers to get a sense of belonging to the chosen few. The first room bears the name CHANEL. We enter Coco Chanel's worldview, where the brand's features are conveyed with respectful precision. This is Chanel's little apartment. Everything here, including the scent, bears her name.

Next up is the Audrey Hepburn suite. Here the atmosphere is that of old Hollywood, America and the famous actress. The famous song from "Breakfast at Tiffany's" movie greets guests from the threshold and Audrey herself sings "Moon River" for them. All rooms consist of a large living room with a dedicated elegant dining area, a bedroom and a huge bathroom.

The Audrey Suite has a luxurious bathroom with a waterfall, where dancing fish are frozen in white marble through the quietly flowing water, as if echoing ocean images of Los Angeles and theatrical Hollywood.

Hermes brand receives additions of orange, the signature color of Hermes, and its sophistication and aristocratism.

Cartier is a splash of futuristic fashion, an ultra-modern style interior design.

At least 30 names, 30 different and unique concepts for interior decoration and endless creativity for everything to build the celebrity world.

And of course, the architecture also has to match the status of the names. How much would a suite cost? 570€ per night! The payback period would be reduced to 11 years. They are perfect figures. We have a wonderful location for this one-of-a-kind project, hidden from the market on a private land.



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