Why brand execs should learn developer language

Editor’s note: This is part two of a conversation with Equinox Hotels CEO Christopher Norton. In part one, Norton discussed the shifting landscape in luxury, driving rate and the brand’s pipeline.

NEW YORK CITY — Christopher Norton says any brand executive would do well to spend a few years working for a developer, which will help them better understand the language.

“It's very different if you're an independent brand that is owned by the brand, versus having an owner of the brand that also is a builder and investor,” he said. “The language is very different.”

It's very different if you're an independent brand that is owned by the brand, versus having an owner of the brand that also is a builder and investor. The language is very different.

Christopher Norton

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Norton said he has had that kind of education working with The Related Companies, the majority owner of the Equinox Group, which runs a fitness empire, including Equinox, SoulCycle, Blink Fitness, in addition to Equinox Hotels. The relationship started when Norton was named CEO of the company in 2016.

“As a builder and owner, they force you, as an operator, to think like a developer,” he said.

Norton said the language of a developer and really diving into concepts like profitability per square foot or revenue per square foot can force a brand to think differently about a hotel space.  

“Can you make the kitchen smaller? Do you really need that much space? Does the corridor in the back of the ballroom really have to be 12 feet wide?” he said. “Can we be efficient in a way that doesn't affect the guest experience? Do our brand standards really make sense?”

Norton said having exposure to that different perspective can be extremely helpful, especially when changes like COVID forced hotel owners to look at everything in a dramatically different way.

Differentiating in luxury

When asked whether the path forward for Equinox is through management rather than franchising, Norton was resolute.

“Management, for the moment. The model is what we call management contracts,” he said. “It's very difficult to be in luxury and then franchise that out. It’s not impossible, but it’s very difficult.

Equinox Hotels CEO Christopher Norton

“It's best to scale when you might have one person you're dealing with who is a very good operator. You want to really control that experience to every detail.”

Norton said the decision early on for Equinox Hotels was to focus on both urban and resort locations. He said having the same brand standard for both isn’t that daunting if companies have figured out their core principles.

“In our case, there's a clear lifestyle differentiator in the way we designed what we put inside, the way we service and the experience we deliver that resonates with a lifestyle built on our four pillars of movement, regeneration, nutritional and community,” he said. “We incorporate all of that into our design standards and the way we lay out and program buildings.”

Norton said the basics of good customer service apply to both locations, but the mechanics are a little different.

“If you drive a Cadillac or a Jeep, the basics are the same. You can drive both. You just have to adjust,” he said.

Norton said Equinox Hotels has either been very smart or very lucky in predicting trends important to customers pre-COVID.

“Some of what we thought would be important to a customer became even more important,” he said.

When asked for an example, Norton mentioned working with sleep psychologists to design an optimal guest-room experience.

“It wasn't all about the color of the cushion and the height of the desk; it was about, ‘How can I create an environment that gives you the best possible sleep?’” he said.

“The important thing is I keep pushing the team and say, ‘Okay, that's good for today. What's next? Because you design a hotel today that'll open in four years and technology will have changed drastically.”