At Canopy, Hilton Worldwide’s new upper-upscale brand set to debut in Reykjavík, Iceland, in 2016, orange really is the new black. Though the brand prides itself on reflecting the neighborhood in which in resides, there are a few elements that remain the same no matter where in the world it pops up: Earthy communal spaces, subtle touches of orange throughout the guestrooms, and hallmarks of its location, from locally-sourced nightcaps to event flyers and maps posted in each room’s community-inspired art wall.
Gary Steffen, global head of Canopy by Hilton, recently sat down with LODGING to discuss what sets the new brand apart in the lifestyle segment.
So many lifestyle hotels entering the market right now are focused on millennials, but Canopy is taking a different approach. What led Hilton to make that choice?
We think it’s more about mindset. My mindset is probably the same as a 27-year-old. And a grandfather can have that same mindset. In the research we did leading up to creating this brand, we identified mindsets that are going to be attracted to it. Part of that is what we call “the originals.” They skew a little younger, a little more female, and a little bit more LGBT. But we don’t talk about them as millennials, we talk about their mindset. That is a focus we had—to not limit ourselves to going after one target audience from a demographic standpoint; but rather, to look at how they think and how they experience life. And this journey we’ve been on is really incredible because we did focus on that.
We use the term “accessible lifestyle,” meaning we want to make sure we’re accessible to more people who want to experience that than can afford to experience the luxury lifestyle space that is very pricey. That means we’re much more welcoming and open to people who want to experience what an “original” would want.
Without a set prototype, how do Canopy guestrooms morph to fit a conversion or new build?
All the elements came through research that said these are important to the consumers who want to enjoy a great room in addition to a great public space. Certainly, we’ve got to be adaptive for 24-square-meter rooms. Reykjavík is going to have rooms in the 24-32 square meter range, but it still can fit all the key elements and feel very local and natural and honest. So we know we have to adapt, but we also know that the positioning of this brand is such that the rate will have a premium based on all our research to the upper upscale segment. To shrink a guestroom to a level where you couldn’t experience what you just felt [in the lobby] would be a mistake. With that guestroom, maybe not the size, but the components of what you feel in there are important. So we wanted to make sure we didn’t shrink the size too small where you couldn’t feel that way.
How have you worked to bring the essence of the neighborhood inside?
First of all, you have to have the right owners, the right neighborhood—the right partners in this to begin with. Then it’s their job to hire the right chief enthusiast—the general manager. That’s all critical. You’re not going to get the right design unless you start with that. We also chose designers who had designed in the space already, and we introduced them to the brand through an orientation. So, our owners are supposed to use one of the designers who are pre-approved. That is key to us being successful as well. If you’re going to be designing to the neighborhood, you should probably have a designer who understands what it means to design like that. At least 75 percent of the owners who have signed up so far are existing owners. They know the power of the Hilton systems. This allows them to develop and build a hotel that’s completely out of the box for them, and they can design to the neighborhood, which has been fun for them, too.
I’ve been so privileged to watch some of these owners, once they select the right design firm, bring the designs and the architectural schemes to life. You look at the owner after they’ve chosen the right designer, and you can just see the smile on their face. The D.C. Waterfront [currently in development] is a great example. With the design firm that’s partnering with these great owners, the Waterfront is going to be brought to life through every element. And you can see the owners just loving this, because we’re not restricting them. We’re trying to point them in the direction of natural, organic, eclectic—but they’re designing to the neighborhood.
Since Canopy focuses on immersing guests in the neighborhood, will properties feature a concierge service?
What we created here is a differentiator as well. There won’t be a traditional front desk. We’re going to have a welcome desk with a retail wall behind it displaying local art and local retail items. We know we still need an orientation area where guests can say, “Hey, I can get help there,” but the technology we’re going to be using will allow our enthusiasts to be out there among guests to check you in, check you out, help you with directions. So, what we really defined is a welcome enthusiast who will be all things to everyone. In some markets, you may have a concierge, but in most markets, it’s really going to be the welcome enthusiast who helps you with all of your needs. And that’s really the goal of the brand. It’s almost like a one-stop shop Google.
