Spilling the Beans on a New Partnership: TWA Hotel and Intelligentsia

Long gone are the days when a hotel could install a nameless coffee outlet in the lobby and expect a steady drip of customers. But nowadays, even one-size-fits-all Starbucks outlets are being filtered out by many boutique properties, which are opting to align with coffee brands that are more on the cutting edge.

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According to market research firm Ibis World, “One of the fastest-growing segments over the past five years has been independent coffee shops, which target coffee connoisseurs. This trend, which has been termed ‘third-wave’ …considers coffee an artisanal product rather than a commodity.” The Coffee and Snack Shops in the US report goes on to say that “prominent third-wave coffee exponents, such as Stumptown Coffee Roasters in Portland, Oregon and Intelligentsia Coffee in Chicago, have led the charge.”

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That helps explain why hipster brand Ace Hotels partners with Stumptown. But to understand what’s brewing between two high-design New York City properties and Intelligentsia takes a bit more explanation.

FINDING THE RIGHT PARTNER

MCR Development, led by founder Tyler Morse, owns scores of hotels across the United States. Most operate under the flags of big hotel brands. But two of the company’s crown jewels, the soon-to-open TWA Hotel at JFK Airport and The High Line Hotel in Manhattan, are run as high-end independent properties.

In 2013, before The High Line Hotel in New York opened, Morse sent a coffee shop request for proposal to 30 operators. The grounds for selecting a partner, according to Morse, “The vibe that the coffee purveyor would bring — the je ne sais quoi — was vital.”

Intelligentsia at the High Line
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Enter Intelligentsia. The Chicago-based company was founded in 1995 by a California couple looking to bring fresh-roasted coffee to the Midwest. According to James McLaughlin, Intelligentsia CEO and president, “Our philosophy and approach is very particular. We want to educate consumers about extraordinary coffee. It’s our belief that the coffee bar should be a culinary experience. So, we look to elevate the coffee bar experience by spending a lot of time and money creating an experience designed for specifically for the neighborhood.”

That approach was appealing to Morse. “What we liked about Intelligentsia (at the time four stores strong) is that it’s not the Starbucks approach of the same thing over and over again. I visited their stores (in California and Chicago) and was taken with how each one fit the neighborhood they are in.”

Just as Morse appreciated the diversity and design-forward creativity Intelligentsia brought to its spaces, Intelligentsia, according to McLaughlin, appreciated that Morse was “trying to curate an experience for his hotel guests in a way that we are trying to curate experiences for our customers.”

And so, Intelligentsia opened its first retail outlet in New York at the High Line. Attracting both guests and locals, the coffee operation brings in $3200 per square foot in annual revenue, exceeding expectations.

REPLICATING THE SUCCESS

Given the success of the partnership, when it came time to select a cafe operator for the iconic TWA Hotel at JFK, Intelligentsia was first in line.

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When he took on the project, Morse felt the pressure to do the conversion of Eero Saarinen’s landmark 1962 TWA Flight Center at JFK proud. “The TWA building is wildly iconic, and has so much historic fabric. So, we are looking at everything with a 1962 lens.” For perspective, Morse notes that was a time when “Kennedy was president, John Glenn had just circled the earth, the Jetsons aired on television, and the first James Bond, featuring Dr. No, came out.”

Given the history, “We couldn’t just plop a coffee shop in there like a Marriott or a Sheraton. The coffee shop had to fit in with the building’s mid-century modern atmosphere. We had to consider how Saarinen would have designed this.”

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Morse was closely involved in the “hands-on, iterative process,” as were representatives from Intelligentsia and the project’s interior design firm. Morse says historic design elements include everything from the glassware to the seating. As McLaughlin says, “We are going to activate a coffee experience reflecting the period. It’s going to be a perfect representation of a coffee bar that feels like it has always existed in that building.”

Just as the High Line Hotel does not rely on hotel guests, surprisingly, neither will the TWA outlet. Morse points out that the hotel is physically connected to the JetBlue terminal and a short walk from the Delta terminal. So, it’s easy to for passengers, and for airport workers, to get to.

A UNIQUE CUSTOMER BASE

“The thing a lot of people don’t realize is that airports are communities,” said Morse. “Forty thousand people work at JFK. There are FAA and Port Authority employees; baggage handlers, air cargo, flight attendants, pilots — all of whom may be stopping by to get a cup of coffee.”

While passengers rushing to their flights are unlikely to amble over to the hotel, Morse points out that 54 percent of JFK’s traffic is international. And, given the original design of the airport, passengers transferring from international to domestic flights (or vice versa) have to leave the secure area.

That’s why Morse believes he can capture a decent percentage of the 35,000 people a day who have a layover of four hours or more. Morse also suggests the coffee outlet will be the perfect place to hold business meetings. “All roads lead to JFK. This can be a mutual meeting place, where people can accomplish fly-in, fly-out meetings from around the country and instead of going into the city, meet at the hotel.”

“What Tyler is doing,” said McLaughlin, “is curating an all-star line-up of food and beverages.” Jean-George Vongerichten will be opening a restaurant there as well. “So, it’s not only going to become a destination for travelers, but we feel confident that it will become a destination for residents.” McLaughlin said, adding that for Intelligentsia, “The TWA project represents a phenomenal opportunity for us as a relatively small company. This has an international aspect to it, so it gives us the ability to expose more people to our brand, and more importantly, to showcase the idea of coffee as a culinary experience.”

This story originally appeared on Skift Table. 

Laura on TV: Let's Talk About the Hot Destinations for 2019

Want to hear about some of the year's up-and-coming destinations? Take a look at this segment that recently aired on WUSA's Great Day Washington.

On the set with Great Day Washington co-hosts
Markette Sheppard and Kristen Berset-Harris 

Canvassing the Art Scene at Hotels

In times of yore, many hotels used art as the visual equivalent to Muzak. But in today’s Instagram world, the curation of hotel artwork is much more deliberate, as properties try to project their personalities onto the crowded canvas of the guest experience.

Museum 21C Hotel, Bentonville

According to expert curators, art placed throughout the hotel, from the lobby to guest room corridors to the rooms themselves, can serve multiple purposes. It can help sculpt brand image or further claims to a local provenance. Moreover, art collections can create conversations, along with responding to the desire of guests to project who they are by where they stay.

Artwork at The Drake

For Mia Nielsen, the art curator at The Drake in Toronto, the process of selecting art should begin by asking, “What kind of experience do you want to create for your guest? Is it something connecting to the local environment or broader conceptual ideas?”

At The Drake, hotel art “can be an essential way to celebrate what is going on locally, especially for travelers, who get an entry point into what’s happening locally,” Nielsen said. "There are real opportunities to build audiences at a local level through art." The Drake caters to residents by “creating a new context for them to think about how the art produced locally fits into a bigger cultural conversation," Nielsen added.”

Gallery Space at the 21c Museum Hotel Louisville

On the other hand, properties in the 21c Museum Hotels collection (which AccorHotels recently bought) take a more global approach. “Art isn’t just integrated in 21c, it’s our whole reason for being. The vision was to develop a multi-venue museum, a holistic institution with 80,000 square feet of exhibition space across eight hotels," Alice Gray Stites, the company’s chief curator and museum director, says.

The art selected for rotating public exhibitions "reflects what is going on in the world, and is designed to promote conversation and connection,” Gray Stites said. However, as a nod to the hot hospitality mantra of local, local, local, each guest room floor sports a specially designed alcove adjacent to the elevators showcasing the work of area artists.

Guest Room at the 21c Museum Hotel Oklahoma City 

The right art can further the guest experience at all kind of hotels, from lifestyle brands to more traditional properties. “Having unique and intriguing local art with a story adds to a memorable guest experience in the hotel, which is essentially what lifestyle hotels strive for, but can be equally applied to traditional branded hotels, too," Nancy Sweeney, principle at Vail, Colorado-based Art Advisory Service, says.

When incorporating local themes, however, Gray Stites warns against “being too literal. Be cautious about being too kitschy. You can use art to tell the local story, but do it in a sophisticated, understated way.”

Beyond establishing local credentials, Sweeney, whose firm has worked with Rosewood, Ritz-Carlton and Four Seasons, believes "artwork helps each brand create its own identity and maintain brand standards." If a hotel is using art to convey the brand message, Gray Stites advises considering how the mission of the hotel intersects with the theme of the artwork. Sweeney adds that the property should select art to reflect its clientele.

Hotel Arts Barcelona
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Both curators agree it’s important take some risks. “By selecting original multi-media, three-dimensional, commissioned works that are singular, you create Instagrammable moments” that  can “show clients how innovative you are,” Sweeney says. Gray Stites adds, “Don’t underestimate your audience. People like to be challenged. When they see places and faces unfamiliar to them, it provokes curiosity and empathy. There's a hunger for people to connect to new ideas through art.”

As hotels ponder beefing up their art menus, it's also important to "define the key sightlines and spaces in the hotel," according to The Drake’s Nielsen. As they select art, hoteliers should "take a volumetric, spatial approach rather than focusing on flat walls. Walk through spaces and consider how a guest can interact with art to create moments of surprise and wonder."

No matter the approach, the bottom line is that art is not only an investment in aesthetics, but also in, well, the bottom line. “If you find work that people connect to, that is iconic, it will get tagged in social media,” Sweeney says. “There’s your free marketing. And that's how you can justify budgeting more money for art."

A version of this article originally appeared on Skift.com, for which I serve as the luxury correspondent.

Japan is Upping its Game in Anticipation of the 2020 Olympics

In anticipation of the 2020 Olympic Games in Tokyo, Japan finds itself at a pivotal moment—when an effective strategy to attract international tourists could have an outsize impact on the country for years to come.

The Japan National Tourism Organization (JNTO) wants to grow inbound tourism to 40 million by 2020. That’s a significant jump from 2017, when the country attracted 28.7 million international visitors.

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In order to achieve this goal, the JNTO has launched a multilingual promotional campaign to introduce tourism attractions to potential travelers in North America, Europe and Australia. It includes a new dedicated website showcasing lesser-known activities and destinations around the country. This is being supplemented by targeted digital advertisements and television commercials in select markets.

According to The Future of Japan’s Tourism: Path for Sustainable Growth towards 2020, after relative stagnation from 2006 to 2010, Japan's inbound tourism grew by 33 percent a year from 2011 to 2015. The report, issued by McKinsey, notes, “Given the exponential growth in tourism income, the Japanese government recognizes that inbound tourism could be an important engine of economic growth and regional revitalization.”

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However, about 85 percent of Japan’s current inbound travelers hail from Asia, whereas long-haul markets including Europe, North America and Australia make up about 11 percent. McKinsey says for Japan to become a "tourism-oriented country by 2020, it must address this visitor-portfolio imbalance."

The report suggests this discrepancy is due to several factors, including a lower awareness of Japan's tourism assets, the country's reputation as a pricey destination, a lack of English infrastructure, and an online tourism portal that could be more effective in catering to users.

Although luxury travelers aren't necessarily impacted by the perception of Japan as expensive, there's still the intimidation factor among this group. “While Westerners are fascinated by both the traditional and contemporary cultural elements of Japan, the majority are intimidated by the prospect of actually visiting," says Rob Stein, senior travel advisor with The Stein Collective by Ovation Vacations. Even among Stein's well-traveled clients, "the general misconception is that Japan is a closed homogeneous society and thus unwelcoming towards foreign visitors.” Part of the issue may be the formality of the Japanese culture. "Japan can better promote its tourism by adopting a more casual and modern approach. Formality is inherent in Japanese business practices, but perhaps a little moderation could go a long way," says Stein.

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The McKinsey report cites skewed regional distribution as another major sticking point. Tokyo, Kyoto and Osaka get the bulk of international tourism. Part of the reason for the dearth of tourism to outlying regions, according to McKinsey, is lack of infrastructure and lack of regional cooperation. Without regional tourism entities, the country is “missing an opportunity to redesign routes to feature assets that could attract more visitors.”

Indeed, the luxury sector seems to be leading the charge to move travelers out of the big cities. Several big brands, including Ritz Carlton and Park Hyatt, are opening in less-visited destinations by 2020. Meanwhile, the new Japan Luxury Travel Alliance, made up of Kyoto, Sapporo, Ishikawa Prefecture and Nara City, has recently started a marketing campaign to spread the wealth of Western tourism around the country.

Nara City
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According to Ken Iwata, executive director of JNTO’s New York office, the newly-announced Enjoy My Japan campaign addresses several of these matters head on. In 2017, the JNTO conducted an extensive survey in Europe, North America, and Australia among avid travelers who had yet to visit to learn what they find alluring when choosing destinations.

The survey identified the “passion points” that make up a satisfying trip. According to Iwata, "The passion points we discovered are cuisine, nature, relaxation, tradition, city, entertainment, art and outdoor. We try to showcase each of these points (and any unique combinations of these) in our campaign videos."

What is still lost in translation, though, is language. According to Stein, “There is no denying that English is not as ubiquitous as it is in Europe, and other parts of Asia.” Iwata says the Japanese government is on it. “Recognizing the language barrier might deter those who don’t speak Japanese from visiting the country, the government is installing more English signage," he says.

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In a similar vein, the government has decided that, beginning in 2020, all high school graduates must achieve a moderate proficiency in English. He adds, "On a local level, the travel industry is responding by providing menus and instructions in multiple languages" and regulations on tour guides are being loosened, which will increase their numbers, diversity and style.

Having all of these elements in place prior to the 2020 Olympic Games will serve the country well. According to Sean Hyett, associate analyst for travel and tourism at GlobalData, "For such a large and costly event like (an Olympics) to really be beneficial ... the tourism board needs to incentivize travelers to visit again in the future or visit other parts of the country."

This article originally appeared on Skift.com, a publication for which I cover luxury travel.