The group’s new CEO Sam Bakhshandehpour is working on
license deals for Bazaar-branded hotels as he also expands its hotel F&B
management business.
WASHINGTON, D.C. - If Sam Bakhshandehpour has his way, the high-profile,
humanitarian-focused Chef José Andrés “brand” will be managing many more hotel F&B
complexes and, maybe, by the end of this year will sign the “do-good” group’s
first license deal for hotels.
The new Global CEO of the José Andrés Group (JAG) told Hotel
Investment Today that hotel-related opportunities are definitely on his to-do
list. Considering his background (he spent his first 12 years at JPMorgan in
the real estate and lodging investment banking group), licensing The Bazaar
Hotel by José Andrés brand would not be a stretch.
While investing in hotel and nightlife group sbe several
years ago, Bakhshandehpour suggested the design and activation of the Bazaar
F&B concept from Chef José Andrés at the SLS hotel in Beverley Hills
provided the true identity for the property and had as much potential for doing
the same with any other opportunity.
“The Bazaar brand stands for unity and bringing people
together,” Bakhshandehpour said. “It has respect for tradition and the past
while being forward thinking with gastronomy. And when I look at travelers and
this brand, it appeals to a broad range of demographics… We think it does have
legs for us to be able to license that brand for hotels.”
When I look at travelers and this brand, it appeals to a broad range of demographics… We think it does have legs for us to be able to license that brand for hotels.
Sam Bakhshandehpour
Bakhshandehpour said JAG is not looking to get into hotel
management just yet, but he does see opportunity to partner with the right
hotel operators to license the brand that already has significant global reach.
“We also have the synergies that we can bring with this unique offering of food
and beverage that sits under the halo of do good and bringing people together,”
Bakhshandehpour said. “We think there’s real room for this brand to run.”
Bakhshandehpour points to case studies where the thesis has
proven out – from the early days of SLS to more recent vintage F&B
installations at Ritz-Carltons in New York NoMad and South Beach, the Conrad in
Los Angeles and Waldorf Astoria Washington, D.C.
“They’re garnering top [room] rates, driving traffic to the
property and making money out of the restaurants,” he said. “With that formula,
we think that our brand does have the power and reach to be able to benefit
from a rooms perspective, as well.”
Bakhshandehpour is actively looking for hotel license deals
and is in discussions for a couple of opportunities. “I’m hopeful that in the
next quarter or two, we’ll have more to talk about,” he said.
Growing hotel F&B management
JAG recently announced its first development project with
Hyatt Hotels Corp., managing all of the food and beverage at the Andaz in Miami
Beach, Florida, slated to open late this year. Bakhshandehpour added that JAG
has a pipeline for another three hotel F&B projects in the next 12 months.
They prefer to manage the entire hotel F&B complex but do have some license
deals with control clauses to protect the José Andrés and Bazaar brands.
“All of this is targeted to owners saying, ‘we’ll help you
push room rates and maximize the capture of the revenues while we run a very
efficient F&B model to make money,” Bakhshandehpour said.
In fact, Bakhshandehpour said JAG is delivering returns in
the mid-teens, heading into the 20s from a cash flow generation perspective.
Pointing to the Ritz-Carlton New York NoMad, Bakhshandehpour
said the results have been spectacular. “Not only is it one of the highest rated
in the city with all the accolades, the hotel is making money out of the food
and beverage, and we’re able to drive top line and add to the NOI while really
serving three distinct demographics,” he said, referencing the locals, tourists
and the hotel guests.
Bazaar dining at The Ritz-Carlton New York City NoMad
Further development plans include a partnership on their
first luxury waterfront residential development project in West Palm Beach at
Olara, where JAG will manage all of the food and beverage.
This summer will bring the first in a series of openings
with Simon Property Group, starting with the debut of Bazaar Mar and Bar Centro
at The Shops at Crystals on the Las Vegas Strip, later at The Forum Shops at
Caesars Palace in Las Vegas, and then Stanford Shopping Center in Palo Alto.
José Andrés Group has some 20 brands that span from Michelin
star experiences to fast casual. JAG is multicuisine (Spanish, Mediterranean, Mexican,
Chinese, Peruvian, vegetarian, seafood), although rooted in Spanish, which focuses
on the art of sharing, community and small plates.
JAG will continue to expand its wide-ranging concepts from
its Signature Collection (The Bazaar by José Andrés and barmini) to Small
Plates Collection (Jaleo, Zaytinya, China Poblano, Oyamel and China Chilcano)
to JAG fast casual division, FastGood (Beefsteak, Butterfly Tacos, Pepe and
more).
Chef Andrés also remains intimately involved with the work of
his World Central Kitchen (WCK), the non-profit food relief organization he founded
with his wife Patricia in 2010 that provides meals in response to humanitarian,
climate, and community crises.
JAG’s sweet spot
JAG’s sweet spot for running hotel F&B is being the
go-to operator when a luxury hotel is overdue for a refresh. They prefer to run
the entire F&B box – from in-room dining and banquets to the three-meal
restaurant, lobby bar, rooftop bar and the signature restaurant with Bazaar –
to capture synergies on the operational side, control the guest experience and
afford opportunities for cross-selling.
Get us in early with the owners and really plan for what that refresh looks like to maximize the programming from an F&B perspective, and then ultimately drive room rate.
Sam Bakhshandehpour
“Get us in early with the owners and really plan for what
that refresh looks like to maximize the programming from an F&B
perspective, and then ultimately drive room rate,” Bakhshandehpour said.
He added that JAG can come in and work on layouts,
programming, efficiencies, and with a modest capital investment bring something
to life using their promotional engines.
Bakhshandehpour said JAG can advise to spend money wisely on
a refresh as opposed to starting from scratch and moving walls and bars and
importing materials for fancy finishes.
“We also have the luxury of being able to centralize
kitchens and build efficiencies,” he added. “We can really structure the entire
box to have the synergies from the design development perspective.”
When asked about F&B trends, Bakhshandehpour said having
an authentic and entertaining experience for the guests through the food,
beverage, music, design and storytelling is key. He added that menu flexibility
remains critical, as are non-alcoholic cocktail offerings.
Bakhshandehpour works closely with President and COO Ron
Parker, as well as CFO Nestor Nova to run daily operations. José Andrés
continues to serve as the founder, executive chairman and as the creative force
leading culinary innovation across their restaurants globally. The group also
creates books, television and content platforms through José Andrés Media.
JAG’s capital capacity has also received a boost with a new
investment by PE firm RockCreek. In addition, EagleBank is leading a debt
refinancing for JAG.