'Townhouse Hotels' Attract Travelers In Europe

<H1> 'Townhouse Hotels' Attract Travelers In Europe</H1>By Amon Cohen

London - From New York to New Delhi, most hotel rooms owned by the big chains look pretty much alike these days. For some stressed-out travelers, that uniformity can be reassuring; for others, it can be an endless source of frustration.

It is little wonder, therefore, that recent years have seen a flourishing in central London and Paris of "townhouse hotels"-small properties where the emphasis is on personal attention, individually decorated rooms and an ethos of friendliness rather than servility.

However, these are not simple bed-and-breakfast properties. They offer comprehensive business facilities at a generally cheaper price than their five-star rivals, and they are also prepared to negotiate rates with travel managers.

A report on townhouses published last summer by management consultancy KPMG estimated the average proportion of business travelers in such hotels at 50 to 70 percent. It found that more than 50 percent of guests are repeaters, who respond to the personalized service.

According to KPMG, the number of townhouse hotels in London rose from nine in 1990 to 21 last year, and since then another half-dozen or so have opened. They range from well-known names such as Dukes Hotel in St. James to The Sloane Hotel in Chelsea, where all the items in the rooms are for sale.

The trend also is growing in other cities, with 13 townhouses in Paris and two in Brussels. Fans of the townhouse movement include Johnny Moss, vice president of corporate services for J.P. Morgan in London. J.P. Morgan has 12 approved hotels in London, one of which is Dukes. With 64 bedrooms, Dukes is one of the larger examples. Although in the heart of London, it is in a small cul-de-sac and thus undisturbed by traffic. Dukes also numbers senior executives from Goldman Sachs and Morgan Stanley among its regulars, plus many figures in defense and aeronautics-both industries that require tight security, a strong selling point for the townhouses.

"A lot of our executives find it very attractive to stay at Dukes because it is comparatively small and is comfortable, quiet and secluded," Moss said. "The smaller the place is, the more at home they are, and therefore the more relaxed they are. We also get a good rate there."

Compared with larger hotels, the townhouses do price favorably. Rack rate for a double room at Duke's is about $280, whereas it is $380 to $480 at The Ritz.

In fact, Dukes' rack rate is about the same as American Express' negotiated rates for five-star chain properties. The Amex directory quotes the Sheraton Park Tower as 195 pounds (close to $300) and the Inter-Continental London as 175 pounds.

"The rate is very reasonable compared to Claridge's or the Connaught," agreed Cartier communications director Pilar Boxford, who said she always books company president Alain Perrin at the Franklin in London. "We find our executives are happier in townhouses because the service is much more personalized. There is no waiting at the desk or for the concierge, and all rooms have a direct-dial telephone and access to a fax machine."

The travelers themselves seem to be equally enthusiastic, if Jeff Max, director of U.S. software company Systems Development, is anything to go by. "The large, impersonal nature of the big chains makes me feel uncomfortable," said Max, who does business in London once a month. "The townhouses have many of the nice features of a big hotel but combine it with the personal touch of a bed-and-breakfast. They also tend to be much quieter, which is something that is hard to find in London." Max has only one complaint about the facilities: Some don't have air conditioning.

Many such properties are scheduled to open in the next year or so. Two members of the rock group U2 are opening The Clarence in Dublin next May. In London's Chelsea neighborhood, two townhouses will open in April: the Fenja, owned by entrepreneur Peter de Savary (who once owned John O'Groats and Land's End), and Cliveden Townhouse, formerly the Draycott. Anoushka Hempel, who operates day spas in several cities, will open the 52-bed Hempel in London this spring, and a few entrepreneurs who have successfully exploited the formula elsewhere in the United Kingdom also are looking to set up London properties.

While townhouses seem to be doing well, Giles Shepard, managing director of The Ritz, noted that "their average room rate is now creeping up to those charged by their bigger and grander cousins."

In addition, the quality of some townhouses is not up to business-class standards, said David Naylor-Leyland, owner of Dukes and three other townhouses. "Anyone who has a worn-out hotel and wants to think of a marketing idea can call themselves a townhouse," he said.

"Caveat emptor" therefore appears to be the order of the day for American travel managers, but for those whose budgets extend to five-star properties, these hotels could make a worthwhile addition to the European accommodation armory.