Oct. 11–HOLMDEL — With Two Roads Hospitality under its umbrella, Hyatt plans to create what it says will be a lifestyle division that will include the Bell Works hotel, Karolina Kielbowicz, a spokeswoman for Two Roads Hospitality, said.
"There are no changes planned for the brand, programming or guest experience at this time," Kielbowicz said. "We're very much looking forward to the launch of this ground-breaking hotel project."
Chicago-based Hyatt Hotels Corp. said earlier this week that it would buy Two Roads Hospitality for $480 million, giving the hotel chain 85 properties that deliver singular experiences to their guests.
Experts said the move signals a shift in the hotel industry. Baby boomers who once gravitated to hotel brands that could deliver familiarity no matter where they went are being replaced by millennials who prize individuality.
"Used to be, people wanted conformity," said Bruce Baltin, an analyst with CBRE Hotels Advisory in Los Angeles. "They don't need that anymore."
Bell Works could serve as a test case. The former Bell Labs building once was the research and development office for AT&T. But it is being redeveloped by Somerset Development into mixed uses with offices, a food hall, retail, a fitness center and a town library. See the video above to see the gadget Bell Market is using to grow basil.
To top it off, it announced in September that a division of Two Roads Hospitality called Destination Hotels would manage a 186-room hotel on the rooftop of the historic building.
The hotel hasn't been named yet, but it likely will house business travelers visiting Bell Works' tenants like iCIMS, WorkWave and Guardian Life Insurance Co. of America.
Artists' renderings suggest they would have a tough time getting anything done. Among the features: An infinity pool overlooking the Holmdel countryside.
The Bell Works hotel would take its place among other hotels in Destination's portfolio, each one touting its unique amenities; Cliff House in Cape Neddick, Maine, features a lobster shack, while Lahaina Shores Beach Resort in Maui offers swimming, snorkeling and whale watching.
The concept has found a foothold among consumers, Baltin from CBRE said, thanks in large part to the internet. Hotel guests no longer need to rely on a brand name to measure quality; now they can scroll through photos and read guest reviews online.
It has attracted interest from chains. Hilton's Curio division operates nearly 70 boutique hotels. Similarly, Marriott owns the Autograph Collection, which includes the famed Algonquin Hotel in New York.
The risk: Independent hotels could lose their unique culture as they get integrated into bigger networks, said Eric Kelner, an attorney with Hill Wallack based in Princeton.
Hyatt said it would establish a dedicated lifestyle division after the acquisition closes. It could invest up to $120 million in the new company.
"Hyatt is an ideal home for us as we share many values and a deep commitment to thoughtful growth and creating compelling experiences for our guests," Jamie Sabatier, chief executive officer for Two Roads Hospitality, said in a statement.
Michael L. Diamond; @mdiamondapp; 732-643-4038; mdiamond@gannettnj.com
