New Jersey-born, California-based Avi Brosh spent the bulk of his career as a real estate developer, founding Palisades Development Group in 1997. Then the recession hit and forced him to pivot, taking his residential development expertise and applying it to the Los Angeles hospitality market, first with extended stay property Palihouse in West Hollywood, which opened its doors at the start of 2008, followed by the Palihotel Melrose and Palihouse Santa Monica. The properties quickly garnered a reputation for their unique design and popular restaurants, and what began as a very LA-centric venture is now expanding with openings in Seattle, Miami, and San Francisco. Here, the Paligroup CEO talks about the importance of design and the fundamentals of good hospitality.
Why was it the right time to expand Paligroup outside of LA?
We have a platform that’s big enough now, so we have a fairly robust following. These hotels find me. [With Seattle], we’re a big fish in a small pond. We’re going to be the coolest hotel in Seattle, and who doesn’t want that? If you’re in a market like New York or London, people are trying to out-cool each other. People coming to Seattle are looking for something cool, but it needs to be user-friendly and approachable for both business and leisure travelers, so that’s what we’ve focused on. And it’s something for [the locals] to champion; something they can wrap their arms around and feel good about.
How did you translate the Pali aesthetic to your location in Seattle?
The building was built at the turn of the century and was one of the early hotels in Seattle called the Colonnade Hotel, which had [many] iterations over the years. It’s at the corner of First and Pine—the epicenter of Seattle tourism. It very much has the Pali vibe: It’s eclectic, warm, and inviting, but it’s quirky and design-forward. It doesn’t feel like an LA hotel in Seattle. [It feels like] you’re really in Seattle when you’re there. It has a nautical, rustic kind of vibe, but with our sensibility overlaid on it.
How do you plan to keep the brand neighborhood-centric while expanding nationwide?
We try to be the hotel that locals recommend to friends or family when they come to town. We provide a common space where locals feel very comfortable and connected to what’s going on in the city. It requires making an emotional investment and a time investment in the neighborhood. That’s something we do very well. We’re able to create something that’s approachable and fun, but not formulaic or cheesy. We’re not phoning in the design. We shop very locally in every market that we’re in with respect to how we handle the artwork, products, and food and beverage. There’s a lot of people in the lodging world talking about local, local, local and neighborhood, neighborhood, neighborhood. But it’s easier said than done. [You have to provide] a product that is of value to the community.
And a lot of that comes from the design.
I’m dictating all the finishes, layouts, whether we’re buying furniture or making it, fabric selection, etc. I do 100 percent of the design. That has not changed and will not change. I don’t know how to do it any other way. The design and placemaking part of it is one leg of the stool for us; it’s just as important as the operations and financial structure. It’s a fundamental part of what goes on and something that sets us apart from a corporate perspective. The hotels are very much an expression of what I’m interested in. It’s very singular in vision, and one of the more valuable things we do. We make sure each project is different, but still has some commonality. That’s part of the value proposition.
How do you ensure your hotels standout from the competition?
[Every other hotel] in the industry uses the same design firms. The same people make the millwork, the furniture. They’ve been designed by committee—it’s a very safe approach. I don’t subscribe to any of that. In Seattle, one of the things I did, which is very counterintuitive, is build this little stove fireplace in every room. The end result is an unexpected, quirky [element], and it creates this sense of warmth and permanence that makes the property unique.
What do hotel guests ultimately want?
They want [the room] to be the right temperature and to have something that’s comfortable. Can you get a good sandwich? Are the front desk people nice? Is the lighting right? Does it smell good? Is the music the right vibe? You know what people don’t like? Rude people, loud music. They don’t like housekeepers knocking on their door at 9 a.m. These are the core [tenets] that won’t ever go away in hospitality. People like the basics. Our properties are small enough where we can continue to maintain this notion of staying in a local neighborhood inn. That’s what people respond to at the end of the day.
Tell us about your three LA hotels, in Culver City, Westwood Village, as well as your latest, the Silver Lake Pool & Inn.
[For Culver City], it was one of those projects that found us. Most people think it’s a shitty building, but to take this hidden gem and turn it into the neighborhood’s favorite hotel is right up our alley. With Westwood Village, we created this very cute, neighborhood hotel. I wanted to do something that appeals to a slightly older audience—more classic with a muted color palette.
We partnered with Venice, California-based Electric Bowery on the design of [Silver Lake Pool & Inn] and created an urban resort that hit all the right touchpoints for discerning design-minded hotel guests and locals. We achieved that by creating a space that felt urban but relaxed and casual at the same time. That is a hallmark of all Palisociety properties in general, but this property takes it to the next level.
What can you share about your first East Coast hotel, the Palihouse Miami Beach?
It’s [on Indian Creek], which is a much cooler location than being on the ocean. We’re going to bring that residential chicness to the property, which Miami is not really known for. My inspiration was what a pied-à -terre in Florence or Milan would feel like [with] stoked tile, bold pink color, and mixmatched fabrics. Plates on the wall as opposed to artwork, which feels more coastal but with an Italian vibe. The [Art Deco] exterior of the building will speak for itself, but I’m bringing a European boho chicness to it.
What is your secret to success?
Ever since I can remember, I was always connected to people, faces, and things, and how they tied together and why people gravitated toward them. In doing this for a long time, you learn what works and what doesn’t. It was a gradual process for me, because I started my own company when I was young. I had the autonomy to try things that I felt were interesting. I studied what else was going on and how other people were doing things. When I decided to do the lodging myself, I didn’t have any fear about doing it my own way. I know what I like. I have the freedom and the luxury to explore what that is. For me, it’s this ability to mix and match things that are perhaps not supposed to be traditionally mixed and matched. I’m not a designer by trade. I have no idea what the rules are, so I don’t know if I’m breaking any. The result is something very eclectic. It creates attention, and customers respond to it.
