It was a restaurant sensation. Then it was an acclaimed
luxury hotel brand. How Nobu turned an “upside-down business model” into a
success.
LOS ANGELES – Even if you’ve never dined at a Nobu
restaurant or stayed at a Nobu-branded hotel, chances are you’ve crossed paths
with the brand.
Perhaps you scrolled past paparazzi photos of Taylor Swift
exiting the Nobu Downtown in New York’s Tribeca. Maybe you heard the restaurant
name-dropped during an episode of “Keeping Up With the Kardashians.” You’ve
possibly sampled a version of the restaurant’s famous black cod with miso,
which has been imitated at countless restaurants and in home kitchens around
the world.
Since making its debut more than 30 years ago, the Nobu
brand has achieved a rare level of both cultural ubiquity and exclusivity — a
balancing act that few high-end restaurant chains manage to sustain over
decades.
The brand’s most impressive feat to date, however, may be
its successful transition from high-end sushi purveyor to luxury hotelier, with
its Nobu Hotels arm growing to more than 40 properties open and in the pipeline
across the globe in a little over a decade.
It’s a pivot that has caught even seasoned industry
professionals by surprise.
“I didn’t even know that Nobu had hotels before I was
approached for [my current] role,” said Amir Vahdani, who joined Miami Beach-based Nobu
Hospitality as general manager of the Nobu Ryokan Malibu hotel in California
three and a half years ago.

Amir Vahdani joined Nobu Hospitality as general manager of the Nobu Ryokan Malibu.
Vahdani, who’d previously had a 19-year stint at Four
Seasons Hotels and Resorts, was drawn to the Nobu Ryokan Malibu’s more intimate
scale. The 16-room property opened in 2017 along Carbon Beach, steps from
the bustling Nobu Malibu restaurant next door.
Nowadays, Vahdani is thoroughly versed in the brand’s
philosophy, which at the Nobu Ryokan — a smaller, more boutique iteration of
the core Nobu Hotels brand — merges Japanese craftsmanship with a laid-back,
California-inspired approach to luxury.
“It doesn’t have a lot of the tchotchkes that you find in
many rooms — it’s very clean, minimalistic and calming,” said Vahdani, adding
that he and his staff aim for “effortless and courteous service” that makes
guests “feel comfortable and like they’re coming back home.”
This approach appears to be working well — according to
Vahdani, the Nobu Ryokan Malibu has a 50% repeat guest ratio.
And despite Nobu’s association with celebrity culture — with
the Malibu restaurant being particularly paparazzi-friendly — Vahdani insists
the brand’s endurance stems from something more fundamental.
“People love Nobu in general because of the consistency,”
Vahdani said. “You can go to any [Nobu] restaurant and get the same quality and
authenticity. It’s all about being true to the brand. We aren’t just a
celebrity-driven hospitality group.”
Still, Vahdani said he’s hosted “many, many celebrities” at
the Nobu Ryokan Malibu over the years — too many to count. “But as you can
imagine, my lips are sealed,” he said.
Hands-on owners
Star power has been woven into Nobu’s fabric from the
beginning, courtesy of its famous founders.
The original Nobu restaurant — established by celebrity chef
and restaurateur Nobu Matsuhisa, actor Robert De Niro and film producer Meir
Teper — opened in Manhattan in 1994 and quickly became a culinary sensation.
But it wasn’t until 2007, amid the opening of a Nobu
restaurant on the ground floor of the Hard Rock Hotel San Diego, that
inspiration struck again.
“At the time, De Niro was being asked a lot of questions by
the press about the Hard Rock, and he started thinking to himself, ‘I’m not
here for Hard Rock, I’m here for Nobu,’” recounted Rachael Palumbo, Nobu
Hospitality’s senior vice president of global hotel brand marketing. “He
started realizing that we have this amazing restaurant that is really being
leveraged by these other hotel brands, and so, he encouraged Nobu, who really
only knew restaurants, to move into that space.”
In 2009, the founders brought on hotel industry experts
Trevor Horwell and Stuart McKenzie — who serve as Nobu Hospitality’s CEO and
COO, respectively — to develop the hotel concept, leading to the 2013 opening
of the first Nobu Hotel at Caesars Palace in Las Vegas. (Before joining Nobu,
Horwell and McKenzie had honed their hospitality skills in leadership positions
with Hard Rock International and, prior to that, Como Hotels & Resorts.)
According to Palumbo, the group’s first major obstacle was
simply “establishing what the hotels were all about.”
“We’re in the luxury lifestyle area, so we’re competing with
some major brands in that space,” she said. “It was a challenge just trying to
distinguish ourselves in the early days.”
Winning over travel advisors early on proved critical.

Minimalist guestroom at the Nobu Ryokan Malibu
“I was reaching out to travel advisors who I’d worked with
in the previous roles, trying to instill confidence in what we’re doing,”
Palumbo said. “But I was very encouraged by the travel community. Virtuoso was
one of our first big supporters.”
One of the hotel concept’s biggest assets, however, turned
out to be what Palumbo described as its “upside-down business model” that puts
dining first.
“Not many hotels open first with a restaurant and then with
the hotel,” she said. “Usually, you find that celebrity chef and then kind of
enhance the hotel with that chef afterward, but with our brand, dining is at
the heart of everything we do.”
That’s not to say that Nobu Hotels’ culinary-first approach
didn’t present any hurdles. For instance, how would a brand best known for its
upscale dinner service handle breakfast?
According to Palumbo, the solution was to develop
“Nobu-inspired breakfast dishes” that incorporate Japanese ingredients and
techniques into a variety of morning staples. At the Nobu Hotel London
Shoreditch, for example, breakfast offerings include a Nobu Style “full
English” dish, which includes bacon, Japanese Kurobuta sausage, shiitake, onion
confit, cherry tomato, eggs and crispy black pudding, as well as the Matsuhisa
Benedict, made with crispy tofu, spinach, snow crab, shiso bearnaise and salmon
caviar.
The timing for a culinary-focused hotel brand couldn’t have
been better. Nobu Hotels’ debut came just as social media was ushering in a
revolutionary new chapter in foodie culture.
“Social media helped [fuel] the whole ‘food porn’ movement,”
said Makarand Mody, associate professor of hospitality marketing at the Boston
University School of Hospitality Administration. “People began talking about
their food and the experiences they have through Instagram and other social
media channels, and early movers were able to [leverage that] to maintain an
advantage.”
Expanded menu of destinations
Nobu Hotels may have planted its first flag stateside, but
the brand’s reach has since expanded across five continents, with properties in
destinations as diverse as Ibiza, Spain; Manila, Philippines; Marrakech,
Morocco; Santorini, Greece; and Warsaw, Poland.
The group most recently added the Nobu Hotel New Orleans,
which opened within the Caesar New Orleans in January, and later his year,
Nobu Hotels are slated to open in Rome, Toronto and Khobar, Saudi Arabia. The
brand’s extensive pipeline also includes plans for hotels in markets including Bangkok,
Lisbon, Tel Aviv, Orlando, New York, Egypt, Barbuda and Punta Cana,
Dominican Republic, with more to come.
How has Nobu Hotels managed to export its distinctive brand
of cool across such a wide spectrum of global destinations?
Daniel Langer, founder and CEO of luxury brand strategy firm
Equite, credits in part the brand’s “relaxed luxury approach.”
“Given that they were born in a time when luxury dining was
a little bit more stiff and formal, they brought an approach that was what I
would almost call a bit more human,” said Langer, who also teaches at
Pepperdine University in Malibu and has been a Nobu customer for about a
decade. “I’ve been to so many Nobu locations all over the world, and typically,
I find that the waiters are always quite nice. There’s a relative consistency
in their kind of easygoing approach to service.”
Langer added, however, that the Nobu brand also benefits
from “special occasion” positioning.
“My daughters, whenever they’re in town, always want to go
to Nobu if they want to celebrate with friends,” he said. “They’ve somehow
created this brand that seems quite special across the generations.”
And, of course, good food never goes out of style. When
Langer dines at a Nobu, he typically requests a “chef’s special” assortment of
nigiri and sashimi.
“I’m typically not disappointed,” he said. “The quality of
the food is very, very high.”
As Nobu continues to expand, however, Langer predicts that
maintaining this consistency and specialness could become increasingly
challenging.
“They do have a watch out a little bit,” Langer said. “There
are so few brands in today’s world that give you a consistent experience across
a number of properties.”
Boston University’s Mody said the brand has “grown sensibly”
so far, but he echoed Langer’s warning.
“When you start becoming big, then what made Nobu Nobu could
start to get lost,” he said. “And if something’s available everywhere, then you
kind of risk losing some of that aspirational nature of the brand.”
But despite Nobu Hospitality’s plans to reach 50 hotels in
just the next few years, Palumbo remains confident that the brand’s high
standards will endure, thanks to the ongoing involvement of its three founders.
She said De Niro, despite his busy filming schedule, remains involved in
property decisions and opening events, while Teper continues to focus on the
brand’s design and architectural elements.
Matsuhisa, meanwhile, is especially hands-on, traveling 10
months a year to visit Nobu properties and spending time with kitchen and
front-of-house staff.
“He walks the talk,” Palumbo said. “He will go to all of our
restaurants — some of them more than two or three times a year, but all of them
at least once a year. He treats our colleagues like family, and many of our
staff members have been with us a minimum of 10 years on the restaurant side,
so there’s longevity and loyalty there.”
On the guest side, the Nobu brand has also managed to
cultivate a cult status-level of loyalty — despite never implementing the
points-based rewards programs that have become standard across much of the
luxury and lifestyle hospitality segment.
Mody credits this high level of loyalty to the Nobu brand’s
ability to master a delicate balance that very few luxury hospitality players
achieve.
“It’s accessible, but it’s not too accessible,” Mody said.
“It’s exclusive, but it’s not exclusive in a very exclusionary way. It’s done a
lot of things right, and as far as the hotels are concerned, it’ll be
interesting to see how they can keep that uniqueness, that exclusivity and that
culinary forwardness across [the portfolio] as it grows.”