Ken Cruse says his new hotel concept has been built – not retrofitted – for people who truly value personal wellness, social good and the environment.
Cruse, founder and CEO of Alpha Wave Partners and SCP Hotels, says his Soul Community Planet brand allows guests to determine the rate they pay at check-out based on the quality of their experience. It just opened its third hotel, SCP Depoe Bay, a 14-room “surf shack” in Oregon that appeals to the surf and arts community, with on-demand fitness options including yoga and Pilates, and a pre- and post-decompression room.
The brand also has a 176-room property in Colorado Springs, Colorado, and a 49-key hotel in Redmond, Washington. SCP recently closed on US$5 million in a new Series A preferred equity offering that comprises approximately 17% of SCP’s total capitalization. A second Series A closing is planned for February.
With plans to focus on secondary markets where institutional capital does not play, Cruse told HOTELS during an interview at the Americas Lodging Investment Summit in Los Angeles last week that he expects the company to grow to 50 and 100 units within five years.
Cruse, an industry veteran with experience at Sunstone Hotel Investors, Host Marriott and on the board of directors for Morgans Hotel Group, said the brand’s peaceful guest rooms emphasize disconnecting. Rooms at the Redmond property, which opened in early December following a US$7 million renovation of a historic landmark building, are free of TVs, clocks and radios. They do, however, include yoga mats, meditation pillows, sound machines and selections of essential oils and calming teas.
The brand is committed to sustainability and responsible travel through partnership with One Tree Planted to replant unnaturally deforested areas around the world. It donates the estimated cost to plant a tree every time a guest stays overnight. The company says it also uses eco-friendly and sustainable materials, and energy-efficient systems and solar power.
In terms of profitability, Cruse said SCP looks for existing assets where it can use space more effectively, such as a vintage motel that had meeting space and a full-service restaurant. It converted the restaurant into co-working space and the meeting area to a high-end fitness room.
“I’ve seen throughout my career, when you put a great fitness facility, people will go out of their way and pay more to stay at a hotel like that,” Cruse said.
The concept also has an efficient labor model with the front desk, bar and the market in one contiguous space that could be operated by one person. Solar, water conservation and lighting retrofits can save 10% to 20% based on incentives, he said.