Alexander Kraft

Alexander Kraft and the Post-Covid Fever

A conversation with the CEO of Sotheby’s International Realty France – Monaco regarding the return of travel, luxury real estate, hospitality and fashion in the post-pandemic era.

Interview: Kostas Panagakis | Edit: Hugh Kapernaros

No single job title can adequately encompass the ventures of Alexander Kraft. An executive, a hotelier and a restaurateur, Kraft is a dynamic figure in the international ultra-high-net-worth market. For the past 17 years, he has been the Owner, Chairman and CEO of Sotheby’s International Realty France – Monaco. But there’s more. He’s also a fashion designer, a music producer and a popular social media figure, attracting over 200,000 followers into his world of luxury lifestyle. With such a presence, with such a significant vantage point amongst some of the world’s most influential brands, Kraft has a unique perspective on the past, present and future of the high-end market, a market that has had to adapt to emerging trends and patterns in the face of COVID-19. I was lucky enough to sit down with him and find out where he believes we are, where we’re going, and how the pandemic has shaped the real estate industry for years to come.

‘I call it a fever,’ said Kraft over a zoom call from his home in Monaco. ‘The crisis of the COVID-19 pandemic was a trigger for many people. It was a call to action, a time to act on ideas people have had for a long time, but never thought would be realised immediately.’ As the world stayed at home, as travel ground to a halt, space became more important than ever. Buyers entered the ultra-high-net-worth realty market with more conviction than ever before, as a new generation began to look for a home for a new world. This real-estate ‘fever’ has been seen across several countries, with France and Monaco alone seeing over one-billion euro sold in property in 2021. Sotheby’s has seen one of the most active buying levels for July and August on record, as customers act on their increasing demand for new homes. And there’s no signs of this post-covid ‘fever’ breaking in the future.

‘There’s a pent up demand for buyers,’ said Kraft. ‘People want the perfect property – a refuge. This means a good location, a place where the sun always shines, a place that provides everything.’ Equally, sellers are highly motivated. Second homes are being put up for sale as owners look to benefit from this new wave of interest. This market has long been a fixture for ultra-high-net-worth individuals, with older generations having a base in the city and summer homes in the countryside. However, prior to the pandemic, a trend had arisen which prioritised travel over permanent lodgings. What Kraft describes as the ‘Airbnb Generation’ pursued high-end hotels, resorts and villas instead of large-scale investments in buying. ‘Now, we’re seeing a reversal of that trend. Now, people want to have their own space.’

The reasons for this are partly psychological. During the pandemic, work became flexible, offices became optional and cities became stifling. Businesses quickly adapted to a remote working model, a model which is predicted to continue on into a post-covid world. Now, employees can work from anywhere in the world, resulting in an increased interest for longer stays in secondary homes. ‘The city is no longer the main base,’ noted Kraft. ‘This will be a huge trend for the next 5 to 20 years. The priority now is lifestyle and flexibility, with more of a focus on the quality of how you work, act and live in your spare time.’ 

For Kraft, what underpins this new current is a renewed prioritisation for ‘quality of life.’ This is a philosophy that has moulded his ventures into the hospitality industry, such as his recently opened boutique hotel La Maison Bleue in Provence, France. ‘For years, I’ve been a Sotheby’s executive, so I’ve seen it all. I’ve seen places with grand names and beautiful exteriors, but the reality inside is different. I wanted to open a destination to show people how it can be done.’ After a five-year refurbishment,  La Maison Bleue opened in a stately, classical mansion, offering refined services at a reasonable price. ‘I wanted to make the luxury experience accessible to a broader market, while never diverting from my vision,’ said Kraft. Each room has working, antique fireplaces, marble bathrooms and state-of-the-art beds. ‘The quality is in the details. I want to offer ​​a nice experience which is uncomplicated, affordable and above all, refined.’

Alexander Kraft

More so than any other industry, the pandemic has impacted hospitality and international tourism immensely. Faced with restrictions, regulations and a clientele with new values, hospitality brands have had to adapt and evolve. ‘It’s not so much about the classic hospitality concept these days,’ said Kraft. ‘People are hungry to travel, but they’re also hungry for experiences. They don’t just want somewhere to sleep, they want to find somewhere that’s better than anywhere else.’ The marker for this, for Kraft, is service. ‘Hotels need to have an integrated approach to service which is more imaginative than ever before, from turn-down to room service.’ From the Four Seasons to smaller, boutique brands like JK Place, an all-encompassing approach to the hospitality experience is what sets them apart from the rest. ‘It’s all about finding new ways to create guest experiences,’ noted Kraft. ‘That’s the way in which the industry must evolve.’

Another significant impact of the pandemic on the hospitality industry has been on workers. The vulnerability of the industry has led to a noted shortage of employees, as hotel groups struggle to attract workers back to their vibrant industry. ‘Hotels need to think about how they structure service not only for guests, but for their staff,’ said Kraft. ‘Work needs to be more manageable, more inspiring. A concierge with passion, with interest and energy is more likely to go the extra mile in their job. Ultimately, this translates into a better hospitality experience for guests, and a better quality of offerings for the industry as a whole.’ 

Alexander Kraft

The eye for quality and aesthetics has also guided Kraft into an expansion into the fashion industry. In May 2020, Kraft launched his own menswear brand, the Alexander Kraft Monte Carlo Collection. Much like his beliefs as a hotelier, his approach as a designer focused on refinement, taste and accessibility. ‘I wanted to make very good, ready-to-wear clothes which are ethically-made, which are timeless classics with good materials, at a price point which isn’t usually seen for this kind of garment.’ Drawing on experience of over 30 years working with personal tailors, Kraft released a collection of garments that brings the sophistication of the old world into the now. The attention to detail and quality of material has not been overlooked. Within 48 hours of its launch, Kraft’s collection was sold out – a testament to his ardent social media following and canny sense for high-end interest.

‘There’s a consistency in belief, I believe,’ said Kraft. ‘Hotels, like clothes, must stand the test of time. Take jeans, for example. If the material is good, if proper denim is used, then you don’t have to worry about stretching. The same can be said for hotels. It’s all about quality – quality in the details. I believe that my hotel will still be relevant in 20 years, because it was made with a long term vision in mind.’ In that regard, Kraft looks to the future with optimism and determination. Emerging from one of the most difficult periods in recent history, the outlook for real estate, hospitality and fashion is similar: we must have care, attention and excellence at the heart of every venture. Only then will each product and each name last a lifetime.