When Richard Kessler founded the Kessler Collection in 1984, the U.S. had few boutique hotels.
Inspired by Europe’s small, independent hotels and bed-and-breakfast lodgings, Kessler discerned that travelers would pay up to stay in novel places. Today, he has 10 high-end hotels, all part of Marriott’s loyalty program and the largest Autograph Collection franchisee.
Boutique brands and experiential travel are among the hottest trends in hospitality. To stand out, “you darn well better do something pretty outstanding,” Kessler said in an interview with Skift. We spoke with Kessler to discover how he became a leading voice for luxury hotels in the U.S. South and what’s next for his brand.
Winding Road
Kessler began testing experiential luxury in 1999 by opening the Casa Monica Resort & Spa in St. Augustine, Florida. The former co-founder and president of budget brand Days Inn tapped into a deep market for unique luxury accommodations.
In 2001, Kessler debuted Grand Bohemian Orlando in downtown Orlando, based on the Bohemian philosophy of celebrating the arts. Designed around themes of art and music, the hotel was running at 75% to 80% occupancy within six months of opening, Kessler said.
Experiences, Dining Are Key
Kessler said he thinks of luxury lifestyle hotels as being in both the lodging and entertainment business.
Living in Orlando, he drew inspiration from Walt Disney for this philosophy, noting that Disney interwove entertainment and education and made the resort rewarding for visitors and locals.
Kessler said that extensive employee training and strong attention to detail in design are critical. The firm has an in-house interior design team of a half-dozen people to create unique looks for each hotel and hones in on city history for ideas.
The team helps with his three primary objectives for his properties: to be beautiful, to offer cultural experiences, and to 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’s been converted into a lifestyle property. The team built on a fossil fuel history and built a natural science museum in the lobby, including a dinosaur, geodes, and other fossils, tapping the expertise of a Smithsonian Museum consultant to create the exhibit.
Experiential Offerings
The hotel also recently started offering a chartered boat service, with two luxury wooden boats from the 1920s, for weddings and special groups.
Another driver is food and beverage, a key focus for the hotelier. Kessler has 28 different food programs across its hotels. He said the group reviews menus every quarter to six months to refine them and find new products.
Food is the most difficult part of running a high-end hotel, but it’s also key. Being a trendsetter also helps. The brand claims its Savannah property was the first in the city to have a rooftop bar.
Kessler said the company’s food and beverage revenue is double the industry average for four-star hotels of $14,358 per available room as measured by CBRE.
Future Growth
Kessler Collection’s current project is in the Blue Ridge Mountains town of Cashiers, North Carolina. It will be a Grand Bohemian Resort consisting of a 100-room high-end hotel, 40 cottages, and “glamping” units — for a total of 140 rooms. The project was first announced in 2022, and Kessler expects to complete it by 2028.
Being in a rural area, the project required detailed plans to receive county approval, including finding a water source and how to handle wastewater.
“It’s been a tail twister, but we’re pretty much through that now,” Kessler said, adding that the next challenge is getting the costs in line. “It is a great location.”
Kessler sees plenty of room for luxury hotels in states such as Florida. He’s also looking elsewhere.
“I would like to see us go north…. Generally, 80% of our growth will be up and down the Northeast Corridor, all the way up to New York State,” Kessler said.
He’s also considering turning the Grand Bohemian brand into a franchise over the next five years, following Ritz Carlton’s framework.
“After they had about 10 properties, they started franchising. They had built the brand. The Bohemian brand is known pretty darn well now, particularly on the East Coast,” he said. “It’s a very distinctive product, and nobody can quite copy it.”
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