REPORT FROM THE U.S—Not many people can say they’ve lived and breathed luxury hospitality in the way that Horst Schulze has. And in his years in the industry, the former Ritz-Carlton Hotel Company CEO has seen a basic shift in how hoteliers offer and guests perceive a “luxury” experience.
“The guest has changed,” Schulze said. “We defined luxury before the ‘70s and ‘80s as glass elevators and big lobbies. Then in the ‘80s it became chandeliers, marble, artwork and so on. Today, luxury in the mind of the customer is doing things their way. They want individualized service.”
They also want absolute immediacy, he said.
“When we opened our first Ritz-Carlton in 1984, we knew when customers checked in they didn’t want to wait longer than four minutes,” Schulze said. “Up to that point it was fine, but after that they became upset. Now it’s become 20 seconds.”
The understanding that people want what they want right when they want it is at the core of how Schulze’s current management and development company, Capella Hotel Group, operates.
“We have no check-in and check-out times at our hotels because we know our guests don’t like that,” Schulze said. “We also don’t believe in hours of operation. If you want dinner at 3 a.m., we’ll serve you in the restaurant. We do everything for our guests.”
That type of “ultra-luxury,” as Schulze described it, was his goal from the moment he started Capella in 2002.
After retiring from Ritz-Carlton, Schulze originally conceived Capella as a small company including two or three “extraordinary hotels.” The company has since grown to more than 15 properties with more in the pipeline in Qatar, Bangkok and Riviera Maya, Mexico.
Most of the properties are branded as either Capella Hotels and Resorts or Solis Hotels and Resorts. Both brands are owned by Schulze’s company, but some are independent.
The most recent additions to its portfolio include a resort in Saint Lucia and a set of three properties in New Zealand.
Schulze said Capella has opportunities for even greater growth, but executives must be extremely selective with their properties to live up to their standards for truly high-end luxury.
“We can’t grow it like a normal luxury hotel company,” he said. “We have to have the market that pays the rate and is interested in that kind of product. I can think of 1,000 spots for a luxury hotel, but only about 10 for a Capella hotel.”
Schulze said the company’s expansion plans including properties in Orlando, Florida, and St. Louis. The company is also in discussion for a property and location in New York City that Schulze described as ideal.
“It’s an unbelievable location that we’re finalizing,” Schulze said. “We've looked at at least 10 other locations (in New York City) and (we've) said ‘no’ every time.” He said it’s too early to discuss more specific details about the property.
Capella’s growth, while larger than originally expected, wasn’t without hurdles. The company was abruptly terminated as management for the property now known as The Resort at Pedregal, formerly the Capella Pedregal in November 2014. The shift was made overnight as Capella employees arrived one day to find they’d been shut out from resort co-owners CarVal Investors.
Schulze declined to comment on the Pedregal resort citing legal concerns.