West Elm ‘Retails’ Boutique Hotels

The Wall Street Journal: “Furniture retailer West Elm is worried about following other chains down the rabbit hole of opening too many stores. So the company has another plan to sustain its growth: launching a chain of boutique hotels. West Elm will design, furnish and market the hotels, the first of which will open in Detroit and Savannah in late 2018 … Guests will be able to buy the room furniture and other décor online.”

“The hotel project thrusts West Elm, part of Williams-Sonoma Inc., into a fast-growing, but crowded field. Most of the major hotel chains have launched boutique hotel brands in recent years as travelers have come to crave unique experiences rather than the standardization that was once their biggest selling point … Industry experts say there is room for more entrants. Despite growing 24% over the past six years, the number of boutique hotel rooms still represents just 2% of the total supply.”

“To test its ideas for West Elm Hotels, the company built mock rooms in a Brooklyn warehouse … Guests who like the furnishings will have an opportunity to purchase them through an app they can download when they check in, or on West Elm’s website. No price tags will be displayed in the rooms, however.” West Elm says it “could eventually have as many hotels as retail stores.”

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