In a video interview, Pacifica Hotels’ CEO and President Matt Marquis shares why independent hotels are capturing market share, and what’s next for the company.
NASHVILLE, Tennessee—Independent hotels are in a good place right now, able to capitalize on people’s desire for authentic experiences—and their willingness to pay for the experience, said Pacifica Hotels’ CEO and President Matt Marquis.
“What we’re seeing in the market … is that indie hotels are leading (revenue per available room) growth right now,” Marquis said in a video interview with Hotel News Now, filmed during a break at the 2017 Hotel Data Conference. “People want that unique experience … so we’re seeing our product able to push rate as much as possible.”
Those characteristics are what keep this segment of hotels ready for the next part of the industry cycle as well, Marquis said.
“Going into a downturn, we don’t have as many brand restrictions,” he said. “It’s a more nimble product than branded hotels.”
Marquis spoke about how the Irvine, California-based Pacifica Hotels is staying nimble and capitalizing on the demand for its properties. The company operates 30 limited-service boutique hotels and four full-service restaurants and bars, along with more than 1,200 employees.
Most of Pacifica’s hotels are situated along the central California coastline. In addition, the company operates nine hotels in the Los Angeles area, one near San Francisco, two near San Diego, one branded hotel in Florida and one branded hotel in Hawaii.
“The beautiful coastline (in California) is why the market remains strong,” Marquis said. “Everyone wants to invest in California right now, especially coastal properties.”
Marquis said Pacifica is “looking to explore not only acquisition and renovation opportunities, but also third-party management and licensing.”
In addition, he said long-term plans include moving beyond California and into all major U.S. markets.
Two particularly exciting projects for the company, Marquis said, are the soon-to-open Oceanpoint Ranch, a resort on 9 acres in Cambria, California; and a renovation project the company is working on in downtown Los Angeles. Pacifica purchased the Milner Hotel in 2016 and is converting it to its Wayfarer brand. The company has one Wayfarer open already, in Santa Barbara, and the model incorporates both traditional hotel guestrooms with dorm-style rooms to house more people.
Building its own small brand concepts is a goal for Pacifica, Marquis said.
“We’ve been developing The Wayfarer, which is … very much like an upscale hostel, and also The Kinney, which is a three-star boutique alternative.”