Applying all the experiences from its previous incarnation as Viceroy hotels, the emerging modern luxury Proper Hospitality, owned by the same partners from The Kor Group, is starting to gain traction. It started with the 200-unit, residences-only Hollywood Proper Residences in California, and then through a combination of mixed-use and strict hotel developments underway in vibrant work-play neighborhoods of Austin, Texas, and in California, in downtown Los Angeles, Santa Monica and San Francisco.
Opening the initial properties the right way after a January 2015 company launch is the mantra of Brian De Lowe, president and co-founder of Proper and a partner at Kor. “We want to make sure we successfully open these properties,” he said. “We spent a good amount of time designing, entitling, getting capital, etc. Now it’s about building out teams and launching successfully.”
Beyond the aforementioned hotels, De Lowe said Proper is exploring opportunities in New York City, Miami, Nashville, Seattle and Portland – “emerging neighborhoods attracting our customer base already.” He added that the brand has global legs but is purposefully not looking outside North America just yet.
However, looking further down the road, De Lowe said he is thinking a lot about the resort market, and not in the traditional sense. “I’m thinking more for our type of customer, who is tech-savvy and always on the go. It’s about ‘bleisure’ and unique experiences. It feels like in the resort space there is not a cooler, lifestyle-focused company doing it well. I’m intrigued by the idea of ‘outposts’ in more resort locations like the California wine country. Properties surrounded by tech firms who want offsite retreats. Incorporating elements of urban and doing it in resort setting for the creative class is very interesting.”
Proper Hospitality manages all Kor hotel developments, although Kor is not a partner in the Hollywood residences, and does some third-party work for other owners under its Avalon lifestyle brand with hotels in Beverly Hills and Palm Springs, California.
“Innovation districts is where we try to go,” De Lowe said, referencing the Hollywood residences located at Columbia Square near the old Columbia movie studios. “The area is being re-developed. Viacom moved its corporate headquarters there, and Fender guitars and Netflix are finishing headquarters a block away. It is a vibrant part of Hollywood, with new and high-end spaces coming together.”
Getting everything right
Proper is thinking innovation in its approach to generating loyalty, as well. The Proper app, with neighborhood guides and private flight assistance, goes hand-in-hand with Proper’s concierge lifestyle management service. The Proper Card is its version of a recognition program, with a range of access and pricing benefits for those who either own a condo or stay at its hotels. And Proper Giving is a companywide initiative to align hotels and residences with local causes. For example, in Hollywood, Proper is finding a nonprofit to partner with within the ZIP code to donate 1% of time, space and management revenue. Proper staff can spend time working with the nonprofit, with the average staff member participating 2.6 days a year. “We find leaders within our properties who take charge and share the passion,” De Lowe said.
For the moment, De Lowe said his biggest challenge is opening Hollywood Proper Residences, perfecting systems and sales strategies, which include partnering with Airbnb. “For independent operators with a unique product, I can see Airbnb becoming a solid distribution channel. You must have a multi-pronged approach,” he added.
At the same time, De Lowe is developing a digital and e-commerce awareness campaign that, uniquely enough, because the first project is residence-only, means Proper is launching a new hotel brand without a true hotel open just yet.