How did a luxury extended stay brand emerge from the pandemic stronger than they entered it? TOPHOTELNEWS returns exclusively to the AKA vision.
Larry Korman, President and CEO of AKA, is part of the fourth generation of the Korman entrepreneurial family, whose roots date back more than 100 years to Eastern Europe. Embodying the American dream, his great-grandfather Hyman started the family business, now known as Korman Communities, in Philadelphia in 1919.
Brand vision
It is this bold approach that Korman and his brother Brad took through the founding of AKA in 2008 as a portfolio of luxury serviced residences in iconic metro locations, as well as the luxury apartment brand AVE. and the tier of garden-style apartment communities, ARK.
He is passionate about what the brand stands for and enthuses: “AKA is a way you feel. It’s about escaping the chaos and creating a sense of calm, whether our clients are there for a day, a week, a month or a year. The offer represents something special and specific.
“It’s a historic exterior with a minimal contemporary interior – this idea is a sense of place, a residence, whether in a horizontal condominium or a vertical hotel. Brad and I really wanted to take this furnished apartment idea to its highest iteration, working with top designers and providing hotel services and resort amenities.
Recent rapid progress
AKA’s first properties were in New York, Washington DC and Philadelphia, with the brand crossing the US to Beverly Hills and internationally to Marylebone, London in the UK in 2012. But it’s 2022 which has truly been the most significant year for luxury. extended-stay lodging chain, opening in Miami with the AKA Brickell hotel, acquisition of the Loews Boston Hotel to transform it into the AKA Back Bay hotel, as well as the imminent launches of the AKA NoMad hotel in New York, the hotel AKA Alexandria in Virginia and AKA West Palm in Palm Beach, Florida.
These bring the portfolio to 14 properties, with another to follow in mid-2023: AKA Foggy Bottom, repositioning the former One Washington Circle Hotel with a full renovation. Korman teased that there could also be upcoming projects in Nashville, Austin, Los Angeles, Florida, Toronto, London and even Paris. “Global cities resonate with us – they have global communities that are compassionate and appreciate design. We truly want our properties to be global ambassadors, not just for AKA but for the human spirit of love, respect, understanding and peace,” he stressed.
Investment decisions
As for how the company decides where to expand next, Korman explained, “The idea is to buy distressed properties that were once iconic. You still need to have a good cost base for the investment to be fully successful, so if the price didn’t make sense, we passed on properties.
“We walk through a property in three dimensions to make sure we’re buying well, because we want to have a full arsenal to renovate and transform it properly. Everything takes longer and costs more because of the supply chain issues. supply and inflation, so we need to make sure we can operate a site at the levels we want. So buying well is paramount, especially for our partners, and that’s where the business side of Brad, Electra America Hospitality Group (EAHG), lets us keep it honest.EAHG is a joint venture between AKA and real estate operator and capital provider, Electra America.
Historical conversions
The chain’s historic property conversion strategy was embodied at the AKA Back Bay hotel in Boston, with Korman detailing: “We identify iconic properties that have the breadth and depth of experience, and a history. I love the idea of an old building being reinvented and redesigned to breathe new life into a city. Boston was a natural city for us and when I heard about the Loews Boston Hotel, which was the headquarters of the Boston Police Department from 1926 to 1990, I went there and saw its potential.
“In the underground restaurant, it was possible to add a whiskey cellar in the old evidence room, as well as a wine tasting room. I love the team there, they have an eye for detail, which is very much in the spirit of AKA.
The chain however built new ones for AKA West Palm, as Korman could not find a historic location but wanted to be in the city. He acknowledged, “We could transform the building exactly as we envision it, which you can’t always do when you get older. This meant that each room and residence had a micro kitchen or a full kitchen.
Quick adaptation
So how was AKA able to achieve this rapid expansion, given the massive upheaval the pandemic has wreaked on the hospitality industry? Korman recalled, “In the midst of the pandemic, we thought everyone was going to be hit hard. But we never closed our doors. We went through a short term blow where people were scared and not traveling but rather than doing what everyone was doing we stayed open and said we were going to embrace the ‘sexy’ of travel because some people may still need to travel for whatever reason.
“We operated sparingly but recognized that we were selling romance. Some people want the feeling of being at home for a week, others for a year. We provide housekeeping one day a week as our properties are residences and not rooms, so for longer stays it was more economical but still contemporary luxury. It also resonated with people affected by the pandemic who needed to work in a city for one week a month, so we made a weekly offer available. We create a great work environment and always adapt to the way people want to live – we’ve embraced bleisure for years. Korman cited the latest pioneering options such as Zoom rooms, podcast recording booths, tech concierges, and pet spas and services.
Joint efforts
Collaborating with other chains that some might consider rivals has also proven to be a boon for AKA. Ten years ago, Korman worked with RXR Realty CEO Scott Rechler, who wanted to transform 10 floors of the 75 Rockefeller Plaza skyscraper in New York City into a hotel and serviced residences. Airbnb founders Brian Chesky and Chip Conley also participated in the project.
While many hotels viewed the home rental brand with suspicion, Korman took the opposite stance: “I have become very good friends with Brian and Chip. I didn’t see them as competitors, I saw them as new to the market, and rather than avoiding them, I wanted to embrace them. This approach paid off, with Korman recalling, “Airbnb Luxe was something we all did together. So AKA went from maybe 1% of our referrals coming from Airbnb to 11% because of this relationship that we’ve established. Airbnb has taught young Americans the benefits of a residence versus a room versus staying in a neighborhood. This brand is on one level and AKA is on another, so once those young kids grow up we can enjoy those longer stays.
Edition brand founder and creator of the boutique hotel segment, Ian Schrager, is another major industry face Korman looks up to, describing him as its “hero.” Therefore, when Schrager reached out to him during the pandemic, he was more than happy to help develop ideas for a dual-brand concept incorporating serviced residences and suites AKA, catering to “digital nomads.” – remote workers frequently moving to different locations to work and experience the locale.
High-end supply
As AKA is a design-driven brand, it was especially important for the chain to work with high-quality suppliers, especially since Korman noted that order and shipping delays were increasing. The hotel company has approached big names such as Bulgari to supply toiletries, Sony for technology, Living Divani for upholstery and Lema Mobili for furnishings, frequently working alongside famed designer Piero Lissoni.
AKA even sells the line of custom mattresses featured in its hotels, ordered from Sealy Posturepedic, called a.sleep. “It’s durable, and we can customize the bedding to our customers’ style,” Korman said. This curated upscale approach also applies to the beverages AKA sells at its sites, partnering with Philadelphia Distilling to create a.vod Vodka and Karamoor Estate Wines in Pennsylvania for a.vin wine.
He commented, “At first, people didn’t know what AKA was, so they judged us on certain things. So we had a curated, well-refined offering for the materials we use in our hotels and were quickly identified as tasteful – that really helped our brand.
With the attention to detail on the supply chain, property selection and investments, as well as the collegial atmosphere the company fosters within its team, don’t be surprised if you hear more and more talk about AKA’s expansion in the years to come.
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