From Wall Street to Green Street: The Evolution of 1st Hotels

“We’re surrounded by the systems of the natural world that, when left untouched, know exactly how to self-balance, self-regulate, self-cleanse and restore harmony” – 1st Hotels

American billionaire Barry Sternlicht graduated in 1982 from Brown University and obtained an MBA from Harvard University in 1986. In 1989, at the start of the global recession, he was laid off from his job with the Chicago-based real estate investment company JMB Realty, and in 1991, at the age of 31, he founded Starwood Capital Group with Bob Faith, a fellow Harvard business graduate. In 1993, Faith founded Greystar Real Estate Partners and is now its Chairman and Chief Executive Officer.

Sternlicht, meanwhile, grew Starwood opportunistically into an investment company that employs some 5000 people and has offices throughout the USA as well as in Australia, Belgium, China, Holland, Japan, and the UK. It has invested in more than 30 countries, raised over $75 billion in capital, and has some $115 billion of assets, having invested in excess of $240 billion. On March 25th 2015, Sternlicht opened the Ist Hotel South Beach in Miami on the site of a former hotel, launching a hotel chain that is, according to him, “more than a hotel; it’s a philosophy and a platform for change”.

Having introduced numerous innovations in the hospitality sector, such as W Hotels, Sternlicht was thinking about what to do next—something that would not just distinguish the chain from the competition but would help the world. As he had always had an interest in the environment and his children were involved in environmental studies, he came up with the concept of 1st Hotels, a mission-driven luxury hotel chain inspired by nature. His idea was “to do something that matters and would engage our guests and our employees, and it would differentiate us from just another brand and another aesthetic.”. To do this,  apart from the sustainable design and materials used in the hotel, there is no paper or plastic in the rooms, while messages that will educate and inspire the guests are transmitted to them electronically. Also, they are able to control the whole of their stay from a device in their room that can be downloaded to their phone. As Sternlicht says, “it’s not tech for tech sake. It’s tech to allow us to do the environmental stuff we want to do and get rid of paper”.

Apart from their concern for the environment, Starwood is also concerned for the well-being of the hotel staff and stakeholders. Accordingly, 1st Hotels  operates  according to  the following principles:

• Create a positive workplace environment
• Maintain a commitment to Diversity, Equity and Inclusion
• Offer a path to a Rewarding Career
• Foster a Culture of Meritocracy
• Enrich the Lives of our Employees
• Make a Positive Impact on our Community
• Uphold High Standards for our Service Providers
• Improve the lives of others.

When Starwood opened the 1st Hotel London Mayfair in July 2023, the chain had 16 hotels: 10 in the USA, 4 in Europe, and 2 in Asia. The London Mayfair 1st Hotel was formerly a Holiday Inn that has been renovated, though 80 per cent of the original structure remains, saving 4,200 tonnes of carbon. According to Francisca Kellett, a journalist, guest rooms have recycling bins, refillable bottles for drinking tap water and toiletries, sensors that turn off the lights and air conditioning, and a mini bar stocked with sustainably sourced products. The lobby and reception area are natural, with a living chandelier of Spanish Moss and a check-in desk made from a 200-year-old oak tree that was blown down in a storm. Outside, the façade is a 482-square-meter living wall.

Clearly, Starwood has created a profit-making business out of a concern for people and the planet. 1st Hotels is not just about making as much money as possible but is a business in which profit, planet, and people are in harmony. It addresses SDGs 5 (Gender equality), 8 (Decent Work and Economic Growth), 9 (Industry, Innovation and Infrastructure), 10 (Reduced inequalities), 11 (Sustainable Cities and Communities), 12 (Responsible Consumption and Production), and  13 (Climate Action)

References

Kellett, F., (2023), This hotel claims to be London’s Greenest. We put it to the test. The Times. July 14^th.

Oates, G., (2015), Interview: Barry Sternlicht on the Launch of His New 1 Hotels Brand. Skift, March 26th

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