This week’s newsletter includes several new hotel signings, openings and acquisitions. One noteworthy story is the expansion across Europe by Kerten Hospitality, having signed the group’s first hotel in Italy.
Kerten is set to convert a five-storey building in the centre of Rome into a sustainable hotel under its Cloud7 brand. Kerten operates four hotel and residence brands, two of which are in the luxury boutique segment, and so the decision to introduce mid-market Cloud7 in the city sparks my curiosity.
Kerten claims the product maximises every square metre of space, incorporating retail and other concept collaborations to ensure steady footfall and a strong ROI. Assuming it’s at a lower price point too, I’d expect Cloud7 attracts a broader guest demographic than the upper market brands in Kerten’s portfolio, appealing to both travellers and locals alike.
As both developer and operator of mixed-use assets, Kerten is unusual in its offer. Management contracts or leases are generally agreed between hotel brand and developer, as is the recent case with Zoku and Covivio. Set within the mixed-use Stream Building in Paris, Zoku will occupy several floors of the eight-storey site, operating a hotel and coworking space.
Interest in mixed-use developments is generally on the up as the pandemic shines a light on nimble operators and revenue generating opportunities. Now is an opportune moment for proactive hotel brands to enter new markets and forge new relationships within mixed-use schemes.
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