Thought Leaders -- The Multicultural, Luxury Dimension: A Interview With Luca Franco

How has your multi-cultural experience helped you in the working of your business?

"Two ways -- first, I feel, because of my education and my travel, I am a true citizen of the world. It is a great feeling to be able to communicate with almost anyone -- because I speak many languages, and even have a solid understanding in Latin -- took it for eight years when I was in school in Italy. With these attributes, I have overcome a lot of cultural barriers, and for that I am very grateful. I have also lived in 9 cities in the last 27 years. When I have made presentations, and have explained the LLPI model, I can discuss the nuances in many languages -- it helps people understand -- and one of our goals is to help people understand better the luxury mixed use product.

What is the LLPI model and how does it relate to the luxury hotel/mixed use industry now?

"LLPI is our international advisory and management company serving developers and investors, interested in creating luxury mixed-use hotels & resorts. Right now, there are many who are in Mexico, South America, and elsewhere whose economies are not as capricious as ours is now, and consequently, investors are less fearful of financial risk. We are hired to deliver the most lucrative processes, as we combine luxury hotels with leisure real estate products -- condo-hotel units, fractional ownership, and the like. Thankfully, all of our projects have been successful. We have learned much over the years, especially when we have worked with The Four Seasons, both in Florence and in Punta Mita, Mexico. I believe that any successful fractional project should have a high end hotel component, and the Four Seasons brand has worked so well with our projects in Florence, Italy and in Punta Mita, Mexico. ( Below images of the Four Seasons Florence and of Four Seasons at Punta Mita)





Why do you think a successful fractional project should have a high end hotel brand associated with it?

"Because, we have learned our product and operational costs are lower, there are multiple degrees of efficiency, including lead generation and conversion, and you have more negotiation power when working with a branded product."

What are some of your competitive differentiators and how has your multi-cultural awareness played into these differentiators?

"LLPI is one of the few companies that has BOTH a multi-cultural reputation and experience of success internationally. I believe they are intertwined. How we differentiate ourselves is that we customize the project for the population we will be selling and marketing to. Before doing this, we must have the developer understand the market and the value proposition. We have learned never to do anything without consumer support, and we do this by always listening to them, and have them tell US what they want. After all, they will be the people who will eventually buy. And, to have successful focus groups, it is crucial we know the language and culture of those to whom we ask the questions and garner the feedback."

"For example, we just completed a feasibility study and detailed market analysis on mixed use that included fractional development in Brazil. LLPI published our Executive Summary/Research findings on behalf of RCI Latin America / The Registry Collection. We presented it at the SASOIC conference in Rio . We are interested in Brazil at present, because we see huge growth opportunities, very high market depth and the fractional industry is in its very early days. Therefore we are establishing several partnerships with very best local players and luxury brands in order to expand to Brazil in an organic and strategic mode."

What should other companies interested in developing in Brazil, or in other areas, do with the LLPI research information?

"It would be a good thing for them to do a very detailed qualitative and quantitative analysis at the purchaser level for people interested in exploring the fractional concept. Broad research at this level is just the first step in the need to understand local dynamics. The step after that is to create a totally customized product and program based on those dynamics. You must work from the bottom UP, that is, from local feedback first, to be a truly organic project.

Is this what you did with The Vallarta Gardens in Puerto Vallarta, one of your newer projects?

"Yes! It took us many months to modify the product, based on our focus group results. We had to identify who our market actually was – and in this case, it was not specifically the American market, as many had originally thought! It was the higher end Mexican market... as right now, in Mexico there is more confidence in the economy, and more people interested in buying fractionalized beachfront property, just a few hours from where they live. Vallarta is doing well, due to the information gleaned from our focus groups, and our marketing to the high end Mexican population.

How do you see the luxury market changing?

"We have learned within the past year, especially, that the older, more traditional luxury marketing strategies just do not work anymore, as the meaning of luxury is evolving, as the market itself has evolved. It is a new age, luxury does not involve excess or conspicuous consumption anymore. It involves elegance, often a degree of subtlety, with peace and sanctuary -- and because of this perspective change, we also have evolved with newer strategies. Knowing the nuances of other languages, cultures and mindsets create the underpinnings for the strategies. Thankfully, all are working well now, but we know the market perspectives may change even more as times goes on, and we will make adjustments as necessary."