# Proper Hotel turns physical space into owned channel, generating $600 monthly memberships per location

*Wellness hospitality group builds recurring revenue by making the hotel itself the distribution asset.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-09-23.

Canonical: https://www.pops4.com/stash/articles/proper-hotel-2026-09-23t21-7
Subject: Proper Hotel
Tags: owned distribution, membership model, physical space, recurring revenue, community, wellness

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Proper Hospitality is running the hotel as product infrastructure, not just lodging. According to Glossy, the wellness-focused hotel group now operates locations as owned distribution channels where the physical space generates recurring membership revenue alongside room bookings. Co-founder Brian De Lowe and SVP Jamie Mark told Glossy the company positions each property as a wellness destination that members access for programming, amenities, and community events independent of overnight stays.

The mechanic: Proper sells tiered memberships that grant access to fitness classes, spa services, coworking space, and curated programming at each hotel location. Members pay monthly fees reported by the company to average **$600** per location for full access, with lower-tier day passes available. The hotel becomes the venue, the product line, and the customer acquisition funnel in one owned asset. Room revenue remains, but the membership layer adds a predictable income stream that fills underutilized daytime capacity.

This works because physical product brands traditionally rent distribution—retail shelf space, pop-up locations, trade show booths—while Proper owns the venue and controls the entire customer experience from entry to purchase. The wellness positioning justifies premium pricing and repeat visits. Members return for classes and treatments, which creates frequency that pure lodging cannot match. The model converts transient hotel guests into recurring customers by offering access beyond the single stay. Glossy notes the company is expanding this blueprint to new properties, indicating the economics hold at scale.

The steal for a physical product brand: identify an underused owned or long-term leased space—a warehouse corner, a showroom back room, a garage bay—and program it for recurring access. A candle brand runs monthly scent-blending workshops in the production studio. A coffee roaster offers Saturday cuppings in the roasting room. A furniture maker hosts woodworking demos in the shop. Charge a modest monthly membership (**$25-$75**) or per-session fee (**$15-$30**) that covers incremental cost and staff time. Promote it as insider access, not a class. Use existing email and social to announce the first three sessions, then let members recruit. The space you already pay for becomes a revenue center and a customer data engine. Each session is a chance to demonstrate product, gather feedback, and move inventory at full margin without a retailer intermediary.

For brands without owned space, the play adapts: partner with a complementary venue that has empty morning or afternoon slots—a yoga studio, a coworking space, a café backroom—and run a monthly members-only event there. Negotiate a rev-share or flat fee under **$200** per session. A skincare line hosts facials and product education. A snack brand runs tasting panels. A pet supply company offers training clinics. The venue gets incremental revenue and foot traffic. You get a repeatable customer touchpoint and direct sales without marketplace fees. Start with one location and one session per month. If **15** people show at **$20** each, that is **$300** gross per session, or **$3,600** annually from one monthly event. Scale to three locations and the model funds a part-time community manager.

The broader pattern: physical space, when programmed for access rather than transaction, shifts from cost center to owned channel. Proper Hotel demonstrates that the asset itself—the building, the equipment, the environment—can be the product and the distribution simultaneously. For a physical goods brand, this means any space you control or can access cheaply becomes a testing ground for recurring revenue and direct customer relationships, independent of third-party retail or logistics networks.

## The takeaway

Turn owned or partnered physical space into a membership access point to build recurring revenue without retail intermediaries.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
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