Virgin Hotels makes its debut in Chicago

CHICAGO — Richard Branson promises guests at his very first Virgin Hotel that they won't have to pay any hidden fees.

Wi-Fi at unlimited bandwidth is free. There are no early check-in or late checkout fees, room service delivery charges or business center transaction costs. Bottled water is free.

Minibar items are less expensive than at other hotels. A bag of M&Ms, a Snickers bar and a Coca-Cola are $1 each.

"All those extras can add up to $100, $150 on your bill," the British business magnate says, sitting shoeless in the "Shag Room" of The Commons Club at the recently opened Virgin Hotel in Chicago.

Debuting the Virgin Hotel brand, Branson's Virgin Group is trying to give business travelers an alternative to large, impersonal hotels that cater heavily to them. Virgin Hotels, he says, will offer them friendly service, interesting food and beverage options and a nightly social hour starting at 6 p.m. with free alcohol, premium brands included.

By opening a "lifestyle" brand, Branson is jumping into a crowded market. Even giant legacy brands such as Hilton and Marriott, better known for their traditional offerings, have either started or bought lifestyle or boutique hotels, which tend to focus on design, cuisine and local experiences.

Hilton will soon introduce Canopy. Marriott recently debuted AC Hotels and plans to bring its Moxy brand from Europe to the USA. Hyatt announced last week it would create Hyatt Centric. Hampshire Hotels plans to launch two lifestyle brands, Augustus Hotels and Unscripted Hotels.

"I think it's going to be survival of the fittest," says Mark Lunt, hospitality principal at EY. "I think you'll have concepts that will work and concepts that will fizzle out."

Branson says he's not worried about the competition.

"We're not going to be looking at what Hilton are trying to do," he says, "we're just going to create our own thing."

The 250-room hotel is in the Loop district inside the historic Old Dearborn Bank Building. Designers kept many features of the art deco building, including a 1920s cigar bar that serves as the hotel's front desk and brass elevator doors. The Commons Club, a two-story lounge that occupies the original bank floor, has a coffered plaster ceiling.

It also houses the Shag Room, named after its shag carpet, and a library of humorous books from a local bookstore.

"This is programmed in a way so people can work and play," says Raul Leal, CEO of Virgin Hotels, during a tour of the property. "The lines between work and play are blurred these days."

The Commons Club is meant to evoke the feeling of being inside the members-only Soho House, but without having to pay a membership fee, Leal says.

A "You Are Welcome" sign greets customers as they walk off the elevator into the club, which features a menu curated by chef Rick Gresh, previously executive chef of David Burke's Primehouse in Chicago.

Rooms are called chambers. Standard chambers are divided into two spaces with a sliding door in between. When you walk into a room, you enter a dressing room with a vanity, makeup desk and mirror, a large shower with a bench and his and her closets with no doors.

The furniture is whimsical. The mini-fridge is red, Virgin's signature color.

The patent-pending bed has an ergonomic backboard and another seatback at the foot, designed for rest and work.

"You can lounge at the end of the bed," Branson says. "We've got specially designed beds, so you can work from the bed."

Branson says the hotel was designed with the female traveler in mind.

"I think 50% of travelers are women, and they haven't been catered for well in the past," he says, citing better lighting as one amenity female travelers prefer.

The vanity does indeed have extra lights. The sliding door that divides the bedroom from the dressing room has a peephole, so guests can have privacy when room service or laundry is delivered.

Another group of travelers Virgin is catering to is Millennials, those in their 20s and early 30s who will become the majority of the traveling public.

Millennials like to work in public spaces rather than their rooms and expect hotels to embrace the most advanced technology.

Virgin Hotels is doing just that. Walk through the front door, and you can either check in on your own at a kiosk or through an iPad-carrying employee.

A mobile app called Lucy allows guests to check in, control the room temperature, change channels on the TV, order room service or request items such as a bandage.

There are some kinks to work out. On a recent morning, the app experienced a technical difficulty.

Many of the public spaces have not opened. A rooftop bar will debut this spring. A 23-hour diner called Miss Ricky's will open by April. A coffee bar by day, wine bar by night called Two Zero Three, named for the property's address, will follow.

Branson says he hopes to introduce two or three Virgin hotels a year. A Virgin hotel is slated to open in Nashville next year. A New York property will debut in 2017. International expansion is a possibility.

"We will test our product on you Americans," Branson says.