Independent Hotels Have Much to Offer

SAN DIEGO COUNTY – Having a Facebook-friendly spot to capture photographs and videos to share with friends isn’t the only reason a traveler might choose to stay at an independent or boutique hotel, but it certainly doesn’t hurt.

Consumers are increasingly showing a preference for experiences over products, and that goes for travelers needing lodging as well.

Boutique and independent hotels are part of the county’s fabric and remain major draws for visitors.

CoStar reports that there are 258 independent hotels throughout the county, including 20 considered “boutique,” as shared by the San Diego Tourism Authority (SDTA).

Aron Gunver, general manager of The Wayfarer in Pacific Beach, says that the independent hotel industry holds a unique position in the market.

“The advantage of being independent lies in the ability to offer personalized and localized experiences that larger chain hotels often struggle to replicate,” Gunver said. “This agility allows independent hotels to tailor their services to the specific needs of their guests and community. As travelers increasingly seek authentic, immersive experiences, independent hotels can capitalize on this trend by emphasizing their unique offerings and deep connections to the local culture.”

Scott Ostrander, general manager of Kona Kai Resort & Spa, said that independent hotels, as a result of their distinctive destinations and character “often offer experiences that are driven to transcend the ordinary that celebrate local culture with unique amenities, services and adventures that create unforgettable travel experiences that unique in every manner.”

Challenges Met

The independent and boutique hotel industry faces challenges like higher operating costs, competition from both larger hotel chains and alternative accommodations like Airbnb and VRBO, and the need to constantly innovate to keep guests engaged.

But San Diego’s myriad independents, each with their own unique offerings, will continue to fare well as long as they push out their product to the larger market says Fred Tayco, executive director of the San Diego County Lodging Association.

“For the regional (independent) hotels, it’s always about opening the consumers’ eyes to the alternatives out there,” Tayco said. “It’s so easy to go to the Marriotts and the Hiltons because it’s convenient. But for these smaller hotels, the keys are having an increased presence in digital marketing and finding strategies of getting your product in front of a bunch of different eyes.

“We’re very fortunate in San Diego, which attracts so many people. And while people may come here for a conference downtown, what they often do is extend their stay or come back later for a leisure visit, and that’s when they might want to explore other places that offer special experiences.”

Memorable Independents

Many people seek unique and memorable places to visit, and independent hotels more often than not cater to just that, say longtime hotel insiders Bob Rauch and Alan Reay.
Rauch, known in the hospitality circle as “The Hotel Guru,” is chairman of Brick Hospitality; Reay is President at Atlas Hospitality Group.

While affiliated and branded hotel chains with their recognizable names and wider geographical footprint offer things like a known stay experience, loyalty reward programs and the ability to discount rooms for corporate clients, independent and boutique hotels have their own perks.

“Independent hotels offer more personalized service, greater focus on what the guest wants rather than what the brand wants; have total freedom on room design and furniture, fixtures and equipment, and are not constrained by what the brands insist on; and have less overhead costs, with no franchise or marketing fees payable to the brand,” Reay said. “They are also more unique in local experiences and market; typically have higher guest reviews and have more flexibility on pricing.”

Rauch said hotel chains have been watching the independent and boutique hotels closely, with “soft brands” becoming more prevalent. (Soft brands are hotel franchises or chains that provide the benefits of a larger chain without enforcing strict rules, regulations or strong brand identity on the franchisor or chain member.)

“All the brands recognized the competitive nature of boutique hotels around 10 or 15 years ago,” Rauch said. “Some looked at it 15 years ago others caught on 10 years ago, and now the whole industry is going that way. And that’s the idea of soft brands where the guest doesn’t feel like they’re in a branded property because it’s designed by the owner not by the brand and it doesn’t have the brand’s name on it but it’s in the system. The brands did this because they started losing market share.”

Location, Location, Location

SDTA President and CEO Julie Coker said San Diego County’s more than 250 independent hotels are an important part of the region’s hospitality offerings, each setting themselves apart with their own distinct style.

“Independent hotels often lean into the local scene with unique offerings and experiences, as well as hotel design that reflects the neighborhood or area they’re situated in,” Coker said.

Some independent establishments are crowd favorites because of their location near area beaches, including Kona Kai, The Wayfarer and the county’s newest spot, The Boardwalk Hotel (previously the Santa Clara Motel).

Other spots include recently refurbished The Lafayette Hotel and Club on El Cajon Boulevard, the nearly 100-year-old La Valencia Hotel in La Jolla and the revamped 10-room cozy boutique hotel The Brick in Oceanside.

Drawing customers can also be as simple as offering a more neighborly feel, says Brandi Russell, vice president of sales and marketing at Casetta, which runs The Pearl off busy Rosecrans Street in Point Loma.

“We often find there to be a feeling of ‘home away from home’ exuding from small hotels – a sense of comfort one might experience very early on that you wouldn’t necessarily feel at a bigger box type of hotel,” Russell said. “Front desk quickly knows your name, you’re not navigating through large lobbies, spending extra time waiting at elevators, you receive local recommendations from the bartender over a leisurely chat, et cetera.

“The focus on design is very apparent and it’s really seen through a granular lens, something you know wasn’t mass produced. All of these allow you to relax a little quicker, be a bit more present and ultimately, have a little more time to do whatever you want with it.”

Although independent and boutique, The Pearl is one of the few independent properties that offers a reward program called The Guestbook, which allows for cash back or donations to a charity of a visitor’s choice.

Another spot that offers rewards for visitors is The Wayfarer, with Pacifica Perks, a loyalty program that provides members with perks including special offers, early access to sales and best rate guarantees.

Gunver said the hotel also “meticulously monitor(s) market trends and strategically adjust our rates to remain competitive, while offering value-added services that set us apart.”

La Jolla’s Scenes

Rewards for loyal customers are not the be all and end all, says Manoj Chawla, president of Oceanic Enterprises, which bought The Cormorant Boutique Hotel in 2016.

Chawla said that the loyalty The Cormorant builds is based on “unforgettable stays and memorable events, not just points or discounts.”

The hotel has a storied history, starting in the mid-1940s as the Prospect Market, the only market in La Jolla at the time. In the 1960s, hotel rooms were added to the market and it became La Jolla Inn.

Chawla said his company has observed that the independent hotel industry is thriving, “especially in vibrant markets like San Diego, where travelers seek unique and personalized experiences.”

“As an independent hotel, we have the flexibility to craft guest experiences that reflect the local culture, setting us apart from standardized chain hotels,” Chawla said. “This ability to innovate and adapt quickly to guest preferences is a significant advantage.”

Chawla said one of the biggest challenges for The Cormorant is maintaining the balance between top-tier service and managing the operational costs of a smaller property.

“We address this by investing in technology that streamlines operations, allowing us to focus more on guest interactions and personalized services,” he said.

Down the road in La Jolla at “The Pink Lady” – La Jolla’s venerable La Valencia Hotel – third and fourth generations of families continue to book stays, says La Valencia General Manager Troy Longwith.

The hotel that has its own menu for visiting dogs, offers free use of electric bikes and holds yoga classes on site, almost accidentally provides something else popular with guests.
Longwith said there has been a big uptick in social media photo taking and sharing, and notes that the hotel has nearly 50,000 followers on its Instagram page.

Longwith said he took a walk through the hotel in late August and saw four different groups taking selfies in different areas.

“A couple of them were trying to get the right background by the ocean,” Longwith said. “I started to think that we have something that we could probably center a campaign around. We probably have 10 Instagram-able photo spots at La Valencia.”

Longwith said he knows there’s a market for it at a time where “everything needs to be Instagram-able and look good on social media” and said, “Maybe being 98 years old she looks pretty fresh and new to a lot of people!”

The Local Crowd

Some local independent hotels like Kona Kai and La Valencia hold venue space and rooms for local residents getting married, in addition to being popular for “destination weddings.”
But Ostrander said that while weddings, groups and conventions are a major source of business for Kona Kai, “it is the leisure traveler that is seeking a unique soul and vibe that sets us apart.”

Ostrander said that Kona Kai also offers a semi-private club membership for locals to experience the amenities and activities offered at the resort.

Also regularly drawing Southern Californians and San Diego staycationers is The Lafayette, which first opened in 1946. The 139-room destination spot closed from the fall of 2022 until last summer, receiving major upgrades and renovations and is basking in the limelight of being featured in magazines like Esquire, which named it its 2024 New Hotel of the Year.

Steve Slack, general manager of The Lafayette, said after a year since “starting from scratch,” the hotel continues to draw crowds, creative types and artists, many of whom have become regulars at its iconic outdoor pool.

“This summer has become such a prolific scene out there,” Slade said. “It’s such a great thing for us. Through all the ups and downs of the history of this place, the pool has always been the cornerstone of The Lafayette.”

Slade said brands like Marriott that offer different types of hotels for specific guests (including Springhill Suites, Courtyard, Fairfield and the Marquis Marina) have cachet and often get taken more seriously in the broader industry.

But Slack said that’s fine with The Lafayette, which has its own charm and character.

“We’re definitely not trying to be everything for everyone,” he said. “We’re just trying to do something that we feel is really special and unique and hoping that it connects. We’re just trying to create something that’s special and unique for locals and the broader travel community.”

Slack said “We really resonate with being an independent hotel and being able to do our own thing. At the end of the day, I think what we do is do our own thing, do it our way OK hope that it resonates with the people.”

Another Brick in The Wall

Small but mighty, The Brick Hotel in Oceanside is finding its way in the independent and boutique hotel world.

The hidden gem near the coast is nestled within a building dating back to 1888 and is tucked away between a ground-floor restaurant and a rooftop bar.

Tom Aldrich, owner and operator of The Brick said it is challenging to compete with the exposure of corporate brands – which nearby includes The Seabird Ocean Resort & Spa – Destination By Hyatt.

But despite some pain points around not having brand recognition, the hotel is holding its own.

“Business for a small independent is more complicated on a lot of fronts,” Aldrich said.
“How we go up against them is providing a product that they wouldn’t provide due to economies of scale – a small 10-room, intimate hotel experience.”

The Brick is strategic with how and where it spends its time, money and efforts to differentiate itself. Its “boots-on-the-ground and a pulse of the day-to-day operations” are a strong point.

“We can turn the ship immediately and quickly handle customer service issues,” he said. “We are building our repeat business and also specialize in wedding party buyouts… and all of our food and beverage offerings, which is giving us a nice niche in the market to compete and stay booked out every day of the week.”