Why Hospitality Providers Are Entering Retail And What It Means For Brands

Over the past few years, retail has become more and more experiential, and simultaneously experiences have begun to include retail. In other words, the lines have blurred. For instance, coworking spaces have started selling and promoting retail products, and hospitality providers have ramped up and modernized the traditional gift shop. But that’s just the beginning.

Hospitality providers already display products, and it makes sense to monetize them.

When connecting the dots between retail and hospitality, the older generations may think of the lobby gift shop decked out in hotel-branded gear. However, times have changed. First, retail brands like RHRH
and Shinola have created their hotels or alternative hospitality experiences like rented yachts that uniquely promote the brands. Then there is the famed hospitality provider and exclusive club, Soho House, which has an online store called Soho Home, and now physical retail Soho.Home.Studio spaces in London, New York, and, most recently, Los Angeles.

“From the beginning, our members have been asking Soho House founder Nick Jones about the furnishings and homewares at the Houses – who designed them and where to buy them – so we saw it as a natural transition into Soho Home as a retail concept. We like to say that our offerings allow members and non-members alike to ‘bring the House home,’” shared Aalish Yorke-Long, Managing Director of Soho House Retail, adding that “We’re meeting a demand from our members and the public for our products – which is high, demonstrated by our Q2 2022 sales up 105% compared to last year.”

Its new studio retail concept allows new customers who have not been to a Soho House location to experience the look and feel of its design and products and take advantage of an in-house interior design service.

A hotel is a new sales channel and physical touchpoint for brands.

Now, hotel providers are also seeing an opportunity for guests to shop where they stay, and brands are attracted to the idea of an alternative cost-efficient option for physical retail. For example, Ennismore’s SLS recently launched its online SLS Shop. In each hotel room, guests can scan a QR code that directs them to the website, where they can buy not only branded robes and towels but workout gear from Goldsheep and bath products from Malin+Goetz, along with many other products from a variety of brands that ship directly to their homes. “This is the beginning of a strong extension of our hotel brands into the retail space. We will continue to grow the offering, integrating products from fashion, wellness, personal care, and more – no industry or brand collaboration is off limits if they align with our vision. This project was not possible without the incredible vision and support of our entire team, and in particular Lauren Farrell,” shared Michele Caniato, Chief Partnerships Officer and Executive Vice President of Brand Marketing at Ennismore.

This partnership is also uniquely beneficial to young brands, as it is an alternative, more affordable retail option. Keri Wilson, Founder and Chief Creative Officer of Goldsheep, a one-of-a-kind athleisure brand, shared that “it allows us to reach a greater audience and offer a fast, convenient way for our brand fans to enjoy our products. I look forward to our future together and am excited to see this partnership grow.”

The program is akin to Kimpton Hotels’ Kimpton Style online store and similar to The Host Co., a digital commerce marketplace for short-term rentals. However, the latter acts as a blank slate for hosts to sell products on display in their rental properties – essentially allowing them to be both a hotel and a wholesale store. As a result, it opens a whole new revenue stream for boutique hospitality owners.

Beyond the SLS Shop, Ennismore has found ways to help promote and allow brands to utilize physical space in its hotels. For instance, Lincoln cars are the official vehicles used to provide rides for guests in SLS and Hyde hotels in Miami, as well as Mondrian Los Angeles. Various locations also allow guests to use Therabody products during their stay, which in turn helps the brand build awareness.

Retail and hospitality have become one of the same. There will likely be more Soho Home stores, and Ennismore’s various hotels have plans to launch similar concepts to the SLS Shop. As a result, there’s no doubt retail will become a more prominent long-term revenue stream for hospitality. And although brands may benefit from the uniquely affordable physical touchpoint, it also means more competition as hoteliers create their own brands.