Ace Hotel creates new 'ecosystems' to beat rivals

Los Angeles

AT THE Ace Hotel in downtown Los Angeles, the line for a 1920s movie palace snakes past a gift shop selling guitar picks and skateboards. Guests at the Manhattan location crowd around a communal table in the lobby as a Velvet Underground tune plays in the background.

Ace Hotel Group is seeking to stand out in the crowded market of boutique hotels by offering guests different experiences at each of its seven properties. Its Palm Springs, California, outpost hosts full-moon parties and drum circles, and the Ace in Portland, Oregon, rents bicycles custom-made by local builder Jordan Hufnagel that retail for US$4,000 and up.

"They've created these ecosystems that are very unique," said David Whelan, a consultant for startups who's visited Ace hotels in New York, Los Angeles and Palm Springs. "When you walk into a Courtyard or Hilton, you know it by looking at all the similarities. When you w…