Palisociety announces brand expansion plans

Palisociety, the Los Angeles, California-based hospitality company founded by Avi Brosh, announced its expansion plans for 2022 and 2023 with the launch of six new hotels across its signature brands Palisociety and ARRIVE, along with the debut of a new brand, Le Petit Pali.

With 14 properties currently in operation, Palisociety’s collection of hotels operate under three brands — Palihouse, Palihotel and ARRIVE. Slated to launch in 2023, the Le Petit Pali properties will be designed as a bespoke bed & breakfast offering to complement the group’s current portfolio. The brand will debut with three hotels in California, scheduled to open in summer 2023.

Besides the all-new brand, Palisociety is looking forward to the addition of six new hotels:

Palihouse West Hollywood

Palihouse West Hollywoood: The hotel in the city’s W. Third Street will feature 95-rooms, a pool, two dining venues and a lobby lounge. Set to open in Q4 2022.

Palihotel Hollywood: A revamping of a 1980s Hollywood motor lodge into an upscale Hollywood-centric hotel with custom-made furniture and vintage details. Featuring 76 rooms, an oversized pool and courtyard, the hotel will open in Q4 2022.

Palihotel San Diego: The 122-room hotel in the city’s Gaslamp Quarter will sport a contemporary nautical-inspired personality, with a new restaurant and rooftop space and will open in Q1 2023.

Palihouse Hyde Park Village (Tampa, Florida): The 36-key hotel will bring “new-fashioned” interpretation of the boutique hotel experience, with European-inspired interiors, a hotel bar with food service and suite-style rooms. Set to open in Q3 2023.

ARRIVE New Orleans: The 93-key hotel in the city’s Bywater area will consist of three floors of guest rooms, an outdoor pool and courtyard, rooftop space, coffee concept by Mammoth Espresso and restaurant from Chef Eric Cook (Gris Gris and Saint John). Slated to open in Q3 2023.

ARRIVE Albuquerque: The redesigned and renovated 1960s hotel in downtown Albuquerque will feature 135 rooms, an indoor/outdoor signature Italian restaurant, pool lounge, patio and meeting space. Expected to open in 2023.

HOTELS talked to President of Palisociety Jorgan von Stiening to find out more about the new offerings, the evolution of the brands and more.

HOTELS: What is the ownership structure of new assets?

Jorgan von Stiening: Palisociety properties are owned by various ownership groups, many of whom own multiple hotel properties exclusively managed and branded by Palisociety.

H: How did these deals get done? 

JvS: Palisociety’s Business Development team leads deal sourcing initiatives, finding opportunities to either reposition existing hotels with existing ownership groups, or acquire assets with our capital partners. Through an extensive track record of over performing against competitors and delivering truly magnetic spaces on time and on budget, Palisociety is uniquely positioned in the market to be the branded operator of choice in the boutique hotel space, giving our capital partners substantial faith in our ability to drive value.

Palihotel Hollywood

H: Who are your partners and capital sources? 

JvS: Typically a combination of our own internal capital as well as various other confidential capital providers.

H: What is the overall asset value and how its trending? 

JvS: The majority of Palisociety’s assets have now surpassed 2019 performance levels and have appraised for substantially higher amounts than in 2019, particularly as most of our properties significantly over penetrate their competitive sets.

H: How did the concept evolve post-COVID to meet new consumer requirements? 

JvS: The root of Palisociety’s hospitality lies in the old world charm, sophistication, and elegance of classic bohemian European hotels, as such, the newest trends in guest facing hotel technology have a fairly limited place in our platform. We are innkeepers at heart and believe that hospitality is a deeply personal and interpersonal business; this is what Palisociety’s customers have always expected from us and what they continue to want.

H: What are your favorite elements among the six new properties? 

JvS: In San Diego, the Palihotel has an incredible 12th floor guest-only rooftop bar that will have some of the best views of the city directly below the iconic Hotel St. James sign.

In New Orleans, ARRIVE is a first mover in the most authentic and interesting neighborhood in the city, the Bywater. We’ll be partnering with Chef Eric Cook, one of the city’s great culinary talents, and Mammoth Espresso to put together an incredible hotel program. 

The design of Palihouse West Hollywood will be something completely different from the existing hotel product in Los Angeles. Avi Brosh and our design team have put together a Palihouse product that is at its most elevated but quintessentially Palisociety. 

H: What are the differences between Palihotel, Palihouse and Arrive? 

JvS: Palihouse and Palihotels are our signature coastal brands, differentiated by room sizes and kitchen offerings, with Palihouse targeting a longer stay traveler than Palihotel. ARRIVE is our younger, more energetic brand with a heavier focus on F&B, targeting a slightly younger demographic. ARRIVE also is typically located in secondary and tertiary markets.

Palihotel Hollywood

H: Why Le Petit Pali? What are your growth expectations? 

JvS: Nothing captures true innkeeper style like a bed and breakfast, and Palisociety saw an opportunity to move into the small yet high rated bed & breakfast market segment. Our signature Palisociety design aesthetic mixed with a more intimate and bespoke setting appeals to our core customer, particularly for leisure travel.

H: What are the overall growth expectations? 

JvS: We currently have 10 hotels under construction with Le Petit Pali, ARRIVE, Palihouse, and Palihotel all represented. While we dominate the boutique hospitality space on the west coast, we are enthusiastic to enter markets like New Orleans, Tampa, and Albuquerque.   

H: What is the performance of your current portfolio and forecast for the rest of the year? 

JvS: Performance for most of our properties are substantially above 2019 levels.

H: What are your biggest challenges? 

JvS: Staffing is far and away the most significant challenge for the hospitality industry in 2022. Unrealistic pricing expectations for assets is also a problem in many markets.