Luxury Retail and Restaurant Brands Are Opening Hotels

At one point you went to Bulgari to buy diamonds, Gucci for loafers and Restoration Hardware for an ottoman. But now you’re as likely to shell out additional dollars for a stay in one of Restoration Hardware guest suites or lunch at Gucci Osteria. Wanting to give the client more isn’t new. Over the past decade, the new way to bring the client “more” has been through hospitality.

Gucci Osteria, Florence, Italy / Photo: Courtesy of Gucci Osteria

From diamonds to turn-down, there’s no service quite like Bulgari’s, and the brand was one of the first to explore hospitality. “We wanted to create a holistic experience for our clients. Hotels were the choice because of their completeness,” says Bulgari group executive vice president Silvio Ursini. A Bulgari hotel doesn’t instantly scream diamonds, but it does feel like the pinnacle of sophisticated luxury that the brand is built upon. “Doing a hotel as a jeweler doesn’t mean we need to put gold on handles,” Ursini says. “It’s about the philosophy.”

Bulgari Hotel Beijing / Photo: Courtesy of Bulgari Hotel

Further proof is a brand like Nobu, already in restaurant hospitality and expanding with hotels and residences. As 30-year veterans of the restaurant industry, savvy founders chef Nobu Matsuhisa, Robert De Niro and Meir Teper wanted to dive deeper and transform the restaurant into an all-encompassing experience. “The goal was to bring the brand’s culture and service to the hotel sector and create a holistic 24/7 experience,” says Rachael Palumbo, VP of global hotel brand marketing for Nobu Hospitality. The brand has latched on to the central philosophy of kokoro—a somewhat untranslatable Japanese expression meaning heart, spirit or essence—to guide the way. “At Nobu the connection between emotions, feelings, spirit and soul is at our core,” she says.

“Over the past 30 years, we’ve cultivated our loyal following through personalized service. It is about making our guests feel at home.” Nobu accomplishes this by creating an intimacy throughout that includes minimal Japanese design, serene lighting and tea upon arrival. There’s also a multitude of inclusive dining options, including cheeseburgers and Caesar salads, for those who crave something beyond the signature miso black cod.

The Upper House, Hong Kong / Photo: Courtesy of Michael Weber

As for the “why” behind this rapid turn, it could be the dominant spending in the luxury travel market. “Millennials are predicted to represent 80 percent of luxury purchases by 2030,” says Kristina Snaith-Lense, a veteran of the hotel industry and general manager of Hong Kong’s The Upper House. Millennial spending has gravitated toward experiences and they’re traveling more than boomers. Brands are appealing to this demographic.