Ambrose comes to ‘neighborhood’
With a slumping economy and a downturn in tourism, it may seem risky to open a brand new hotel in Santa Monica.
But Deirdre Wallace, owner of the Ambrose, a brand new 77-room hotel on 20th Street and Arizona Avenue, believes she is filling a niche here that will be well received.
The Ambrose — an “affordable luxury hotel” designed in craftsman style with an Asian flare — has had a steady stream of guests since it opened more than six weeks ago.
Wallace said when the hotel first started to be built in 1999, she envisioned the Ambrose to be a unique concept in Santa Monica because it’s a city filled with mostly high-end luxury hotels along the beach.
While the hotel was in the middle stages of construction, the economy began to slow in the summer of 2001. Then the Sept. 11 terrorist attacks occurred, which all but put a halt on tourism here.
But it didn’t squash the Ambrose plans. Wallace continued full steam ahead on her dream of owning a hotel in Santa Monica.
40E,“Our plan was always to offer this product,” Wallace said. “It’s about added value and affordable luxury. It’s almost like we had the foresight because we knew that the economy wouldn’t be strong forever.
“It’s worked out in our favor,” she added. “We couldn’t compete on the beach and still be able to afford the same luxuries we offer.”
Affordable luxury
The Ambrose’ rates are between $115 and $215 a night, and includes most of the amenities other Santa Monica luxury hotels offer for double the price.
While it doesn’t have views of the Pacific Ocean, the Ambrose does offer high-end products in its rooms, including mini-bars, imported Italian bedding, CD and DVD players, a continental breakfast and unlimited DSL access.
The Ambrose also has free underground parking — a coveted commodity in Santa Monica — which most hotels charge up to $25 a day for, said Daniel E. Howery, the Ambrose’s general manager.
And because it’s small, hotel guests receive greater personalized service than what large hotels can provide, he added.
583,“It’s boutique lodging but we fall in the middle of the rate disparity (in Santa Monica),” Howery said. “We provide the same level of luxury that competes with the big boys but don’t have the enormous operational costs of the big hotels.”
Wallace, who said the venture is a multi-million dollar investment, said she hopes to break even this year.
The Ambrose’s bookings thus far are strong and business since the grand opening last month is encouraging, Howery said.
“We wanted a soft opening because things have to be tested out,” he said. “You don’t know what you have to do until people sleep in the beds and use the bathrooms.”
Hotel fills niche
It’s been several years since a new hotel opened in Santa Monica, said Mark Richter, manager of the city’s economic development department. He said because Santa Monica is a destination point for many travelers — both vacationing and on business — the city could use more hotels, particularly small ones like the Ambrose.
Richter said the hotel occupancy rate in Santa Monica is somewhat higher than the rest of the metropolitan area because there is more demand here and the majority of hotels are concentrated downtown or near the beach.
“(The Ambrose) is filling a niche for the business traveler and it’s more neighborhood-serving and, in a sense, community-serving,” Richter said. “By no means has the Santa Monica market reached a saturation point.”
Depending on occupancy, the Ambrose could generate more than $400,000 in annual revenue for the city, based on its 12 percent tax on hotel rooms, Richter said.
The last hotel to open was the remodeled Viceroy, a high-end luxury hotel on Ocean Avenue that is known to be exclusive and expensive.
Santa Monica City Councilman Ken Genser said even though it may seem like the saturation level of hotels in the city has reached capacity, there is room for more like the Ambrose.
“It’s not exactly what we would call a bargain hotel but it does fill a niche,” he said. “It’s somewhat unique and is in line with a neighborhood hotel. I think broadening the mix is useful.”
A neighborhood hotel by design
The Ambrose is situated in the middle of a Santa Monica neighborhood mostly comprised of apartment buildings and Saint John’s Health Care Center.
Howery said while the hotel’s clientele is “nobody and everybody,” the Ambrose will market toward professionals, mostly in the production field of the entertainment industry, who frequent Santa Monica on business. The hotel also will draw people who use the surrounding hospitals — Saint John’s and Santa Monica-UCLA Medical Center.
The Ambrose also attracts its fair share of day travelers who come from nearby cities such as Santa Barbara, and Santa Monica residents who have family and friends visiting.
“It’s centrally located,” Howery said. “When you think of Santa Monica, a lot of people think of the ocean and all of the entertainment, but off the beaten path can be good for people.”
The Ambrose is designed to provide another option for tourists who want the comforts of home, one-on-one service and luxury at a moderate price. The concept is similar to what travelers can find in Europe.
4D6,“Europeans are accustomed to small hotels and they have a natural draw to these kinds of properties,” Howery said.
Beyond marketing through the travel and hotel industry, drawing people to the Ambrose is based on relationship building and word of mouth, Howery said.
“Once people find us, we garner their attention,” Howery said.
Comforts of home
Wallace, whose father owns the Best Western on Santa Monica Boulevard, spearheaded the hotel’s interior design. It is traditional with dark furniture, linear designs and simple but contemporary decor. All of the furniture was designed for the hotel and includes both vintage and classic style mission tables in the lobby and private rooms.
For more than a year, Wallace hunted throughout Los Angeles, particularly Chinatown, to find one-of-a-kind pieces for the hotel. To create a warm, cozy feel to compliment the classic craftsman design, Wallace found the right colored Asian rugs, unusual art from local artists and unique collectibles.
“We wanted an authentic feeling with the depth and richness but also have a softer feminine touch at the same time,” Wallace said. “It’s new so you can’t pretend it’s an old building.”
Originally published in the Santa Monica Daily Press print edition on May 20, 2003. Read the original PDF.