MBW’s Stat Of The Week is a series in which we highlight a data point that deserves the attention of the global music industry. Stat Of the Week is supported by Cinq Music Group, a technology-driven record label, distribution, and rights management company.
Major music companies growing their businesses into previously unexplored verticals isn’t anything new. Warner Music Group, for example, has this year expanded into meme-making (via its $85m acquisition of IMGN Media) and into online news media (via its acquisition of HipHopDX).
That being said, Universal Music Group‘s latest move is very much out of the ordinary – and massive in its ambition.
UMG has just announced that it’s launching a series of “music-based experiential hotel properties”, which will house their own live music venues and a “music-first experience for guests”.
UMUSIC Hotels’ first three announced locations will be Atlanta, Georgia; Biloxi, Mississippi; and Orlando, Florida; with additional cities across the US and around the world to come.
The hotels are being launched as part of a previously announced joint venture between Universal and Dakia U-Ventures, an entertainment impact investment group.
According to Mississippi news network WLOX, the Biloxi UMUSIC hotel will transform the city’s old Broadwater Resort “into a $1.2bn destination”.
That’s a serious level of investment: $1.2bn is very similar to the number that UMG posted in EBITA profitability in 2019 ($1.26bn), although obviously it’s expected that Dakia U-Ventures will be doing a lot of the bankrolling here.
The Biloxi UMUSIC hotel is being built on a 266 acre property.
MBW’s Stat Of The Week: Universal Music Group has committed to launching a $1.2bn hotel in Biloxi, Mississippi. In terms of approximate Spotify recorded music royalty payouts, generating $1.2bn would require UMG artists to clock up 300bn (three hundred billion) streams on the platform.
In a press release announcing the hotels, Universal explained: “Embodying each location’s unique spirit, the hotels will draw inspiration from their respective local culture and serve as creative hubs in communities around the world – promoting positive social change, education and innovation through the power of music.
“Guests will discover the soul of each city through its rich local music heritage. UMUSIC Hotels are committed to helping their communities thrive – creating jobs for local residents, supporting local businesses and suppliers, and creating opportunities for local artists, such as the establishment of new state-of-the-art music venues.”
It added: “UMUSIC Hotels will create immersive experiences for fans, guests and artists alike, with music and entertainment at the forefront of design and guest experience all around the globe. As part of their commitment to the local community, each property will be skillfully designed to complement the city landscape and authentically incorporate elements of the local music scene.
“The UMUSIC Broadwater Hotel in Biloxi will seamlessly integrate a stunning performance venue and a luxury hotel with an immersive architecture style. In Atlanta, the UMUSIC Hotel will include a holistic entertainment venue. UMUSIC Orlando’s design will similarly reflect a music-first experience for guests.”
“Through music’s unique power to inspire and unite – especially given UMG’s unparalleled roster of artists and labels – UMUSIC Hotels will both highlight these cities’ rich music heritages and provide new opportunities for artists to reach fans in immersive, innovative and authentic ways.”
Bruce Resnikoff, Universal Music Group
Robert Lavia, Chairman at Dakia U-Ventures LLC., said, “Every destination holds a great story just waiting to be told through its cultural heritage and its music. Through this new concept, we will both help people discover new ways to channel their love for music and the arts and help empower the transformation of communities worldwide through cultural, inspirational, creative and conscious collaboration. And we’re thrilled to work together with Universal Music Group who shares our vision and passion about the powerful role of culture and music for each community we touch.”
Bruce Resnikoff, President and CEO of Universal Music Enterprises, said, “Through music’s unique power to inspire and unite – especially given UMG’s unparalleled roster of artists and labels – UMUSIC Hotels will both highlight these cities’ rich music heritages and provide new opportunities for artists to reach fans in immersive, innovative and authentic ways.”
Pyramid Hotel Group has partnered with the joint venture for the United States operations of the hotels. Warren Fields, Pyramid’s Chief Executive Officer, added, “We’re excited to work with the Dakia U-Ventures and Universal Music Group teams to launch this new category of experiential hospitality and helping to create properties that truly embody the spirit of the communities of which UMUSIC Hotels will be a part. We share in the vision to give fans, guests and our communities best-in-class experiences around the world.”
Cinq Music Group’s repertoire has won Grammy awards, dozens of Gold and Platinum RIAA certifications, and numerous No.1 chart positions on a variety of Billboard charts. Its repertoire includes heavyweights such as Bad Bunny, Janet Jackson, Daddy Yankee, T.I., Sean Kingston, Anuel, and hundreds more.Music Business Worldwide