When Richard Kessler founded the Kessler Collection in 1984, there were few boutique hotels in the United States.
Kessler took inspiration from small, independent hotels and B&B accommodations in Europe and recognized that travelers would pay to stay in new places. He currently manages 10 luxury hotels, all part of Marriott’s loyalty program, and is Autograph Collection’s largest franchisee.
Boutique brands and experiential travel are some of the hottest trends in hospitality. To stand out, “you better do something pretty outstanding,” Kessler said in an interview with Skift. We spoke to Kessler about how he became a leading figure in luxury hotels in the southern United States and what’s next for his brand.
winding road
Kessler opened Casa Monica Resort & Spa in St. Augustine, Florida in 1999 and began experimenting with luxury experiences. The former co-founder and president of budget brand Days Inn has pioneered a deep market for unique luxury accommodations.
In 2001, Kessler debuted Grand Bohemian Orlando in downtown Orlando, based on a bohemian philosophy that celebrates the arts. The hotel, designed with an art and music theme, was operating at 75% to 80% occupancy within six months of opening, Kessler said.
Experience and food are the key
Kessler said he believes luxury lifestyle hotels are in both the lodging and entertainment businesses.
Living in Orlando, he found inspiration for this philosophy from Walt Disney, noting how Disney weaves entertainment and education to make resorts valuable to tourists and locals alike. did.
Kessler said extensive employee training and strong attention to design detail are key. The company has an in-house interior design team of six people who create a unique look for each hotel, focusing on the city’s history for inspiration.
The team supports his three primary objectives for real estate: beautify, provide a cultural experience, and add value to the community.
For example, the 419-room JW Marriott Savannah Plant Riverside District in Savannah, Georgia is a former coal-fired power plant built in 1912 that has been converted into a lifestyle property. The team built a natural science museum based on the history of fossil fuels, including dinosaurs, geodes, and other fossils in the lobby, and tapped the expertise of Smithsonian museum consultants to create exhibits.
Experience-based products
The hotel also recently began offering charter boat service on two luxury 1920s wooden vessels for weddings and special groups.
Another driver is food and beverage, which is a key focus for hoteliers. Kessler offers 28 different dining programs throughout the hotel. He said the group reviews and improves its menu every quarter to six months and discovers new items.
Food is the most difficult aspect of running a luxury hotel, but it is also important. Being a trendsetter also helps. The brand claims its Savannah property is the first in the city to feature a rooftop bar.
Kessler said the company’s food and beverage revenue is double the industry average for four-star hotels, measured by CBRE, of $14,358 per available room.
future growth
The Kessler Collection’s current project is located in Cashiers, a town in North Carolina’s Blue Ridge Mountains. The Grand Bohemian Resort will consist of a total of 140 rooms: 100 luxury hotel rooms, 40 cottages, and glamping units. The project was first announced in 2022 and Kessler expects it to be completed by 2028.
Because the project is located in a rural area, obtaining county approval required detailed planning, including securing a water source and how to dispose of wastewater.
“We’ve had some ups and downs, but we’re pretty much over it now,” Kessler said, adding that the next challenge is adjusting costs. “Great location.”
Kessler sees a lot of room for luxury hotels in states like Florida. He’s also looking elsewhere.
“I’d like to see us go north. Generally speaking, 80% of our growth will be up and down the Northeast Corridor and into New York state,” Kessler said.
He is also considering franchising the Grand Bohemian brand over the next five years, following the Ritz-Carlton framework.
“After they owned about 10 properties, they started franchising. They were building a brand. The Bohemian brand is now very well known, especially on the East Coast,” he said. Ta. “This is a very distinctive product and no one can imitate it.”
Year-to-date performance of the Lodging Sector Stock Index
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