Fast Company recently claimed that the Ace Hotel group is on course to make $110 million revenue in 2014. That’s a big chunk of change for a business that began as a 28-room hotel in Seattle where guests dropped just $60 a night to sleep on bunk beds. What does that $110 million look like in context? According to http://www.tablethotels.com, the Ace Hotel now operates seven properties with a total of 1,045 bedrooms:
New York: 275 rooms
London: 258 rooms
Downtown LA: 182 rooms
Palm Springs: 173 rooms
Portland, OR: 79 rooms
Panama City: 50 rooms
Seattle: 28 rooms
The key metric for the hotel industry is RevPAR, meaning revenue per available room.
$110,000,000 / 1,045 rooms / 365 days = $288 revPAR.
That’s impressive, considering that the typical RevPAR for US boutique hotels is $157. No doubt the businesses operating out of the Ace, such as Rudy’s Barbershop and the Michelin-starred Breslin restaurant, are boosting the revenue. The Ace is opening further hotels opening in Pittsburgh and New York’s East Village next year.
We’ll aim to list some other hipster businesses with $100 million revenue in a future post.