The further a hotel brand moves up the hotel chain scale, the greater the need is for incredible experiences that create a sense of place — the crafting of true hospitality versus only "heads in beds" lodging.
Every hotel can be unique in this regard; be it a location on a beach or up in the mountains, or focusing on wellness or local cultural stewardship, all of the best hotels are always looking to evolve their programming in order to support nightly rate growth or increased ancillary spend. Above all, what we stress is that exceptional experiences bestow a property with a "reason to visit" that drives word of mouth, occupancy and overall value in multiple ways.
While spa, golf or seaside locations are that reason to visit for some hotels, one huge industry is the demand for immersive culinary experiences or, as they are also labeled, epicurean adventures. Nowadays, luxury and upscale travelers don’t just expect exquisite cuisine with eye-catching presentation (the camera eats first!) and the use of local ingredients. They also want to learn about the region through its cuisine and partake in dynamic, transformative food-centric activities.
One hotel brand that has wholly embraced this movement is Appellation, which is focusing on culinary-forward luxury properties nestled in the heart of American wine regions. They accomplish this through a variety of unique onsite features, included themed interior design, authentically exhilarating cuisine presentation, open kitchens at the signature restaurants, culinary demonstrations for groups or leisure transients, crafted cooking classes, edutainment art pieces for oenophiles scattered about the premises and the advent of "maker spaces" where local craftspeople are invited to produce their wares right in the hotel lobby while also fielding questions from guests.
The two of us interviewed Appellation cofounder and Chief Operating Officer Christopher Hunsberger last year to learn about what defines the Appellation brand. Since that time, the team has been hard at work at developing properties throughout the Western United States, including their first urban location in Morgan Hill (MOHI), California, a small city of 45,000 just southeast of San Jose and still technically within the borders of Silicon Valley.
As well, Appellation is gearing up to open its Healdsburg location in summer 2025, which will feature 108 rooms and suites spread across 12 buildings on 8 acres with two pools, a spa and 15,500 square feet of event space centered around a 4,700-square-foot signature restaurant, all showcasing the best of Napa Valley.
As anyone involved already knows, though, hotel development isn’t easy at all. To learn some more about the trials and tribulations of launching an intrepid hotel brand, we were ecstatic to connect with Courtland Palmer, chief development officer at Appellation.
Palmer also happens to be the son of Appellation cofounder, Charlie Palmer, who brings a world of culinary experience to the brand as an acclaimed executive chef with numerous restaurants under his purview across the world — in particular, those at Four Seasons properties — and chairman of the Charlie Palmer Collective. With hospitality currently having labor challenges insofar as inspiring the next generation of leaders, we were curious to hear about what Palmer brings to the role as a second-generation hotelier.
Since interviewing Christopher Hunsberger nearly a year ago, can you provide an update on Appellation developments?
We recently announced Hotel MOHI by Appellation, debuting in fall 2025 in downtown Morgan Hill in the heart of the Silicon Valley wine region. In partnership with Léal Hospitality, this property is a celebration of the burgeoning food and wine scene in the area, and will be home to a 215-seat signature Charlie Palmer restaurant and bar that sources fresh produce from onsite gardens, Léal Hospitality’s estates, and many other local purveyors.
Appellation Healdsburg is on track to open in summer 2025. Like every Appellation hotel, the resort will feature a signature Charlie Palmer restaurant, as well as a destination rooftop bar with expansive vineyard views and our Terroir Spa with five treatment rooms. We also have dedicated "Maker Spaces" where guests and locals can take part in immersive learning experiences from local artisans as part of our Crafted at Appellation experience.
Looking ahead, we have plans for additional properties in iconic destinations such as Petaluma and Pacific Grove, each scheduled to open in 2026. These hotels will be designed to reflect each property’s unique locale, further establishing Appellation as a leader in culinary-focused luxury hospitality.
Can you describe some of the amenities that make the public spaces uniquely active and differentiate Appellation properties?
We are committed to creating dynamic public spaces that foster engagement and community interaction. Hotel MOHI by Appellation’s design includes a vibrant marketplace and flower shop lounge, where guests can browse local artisanal goods and enjoy fresh offerings from the area. Additionally, Hotel MOHI’s café and bakery will transition into a cocktail and wine bar in the evenings.
One of the standout features is Hotel MOHI’s ballroom, which not only serves as the largest indoor event space in Morgan Hill, but also offers a modern organic design with a show kitchen. This space allows for live culinary experiences, bringing the artistry of food directly to our guests. With amenities like these, we aim to create an environment that not only highlights local artisanship but also encourages exploration, connection and creativity throughout the hotel.
The MOHI property will be Appellation's first city hotel. How will the brand's expansive F&B programming that celebrates local artisans translate to an urban location?
Our mission is to deeply embed local flavors and artisanship into every aspect of the guest experience. From our signature Charlie Palmer restaurant, which will highlight the incredible produce and wines sourced from nearby farms and vineyards, to our thoughtfully designed spaces that reflect the vibrant culture of Morgan Hill, we aim to create a unique urban retreat. This hotel will not only showcase the rich culinary landscape of the region but also invite guests to immerse themselves in the community and its amazing food scene.
Can you give us an overview of your role and your day-to-day at the office?
The conventional role of a development officer is based around identifying and qualifying hotel opportunities, and then, most importantly, determining if there is a mutual level of interest and excitement between all parties involved. Something unique about Appellation’s growth strategy is that we are only interested in destinations that we believe are truly unique, and have a sense of place and local character that we can bring to the forefront of our guest experience, menus, Crafted at Appellation experiences and so on. As a result, especially for our ground-up projects, we are much more involved in the day-to-day real estate development and capitalization efforts. The fun part is every day is different and every one of our projects is unique and exciting in its own way.
What's Appellation's strategic approach to the United States hospitality industry in terms of brand launch and expansion?
Appellation prides itself on taking a culinary-first approach to hospitality, which is something I think pretty clearly sets us apart. And a prerequisite to that strategy is a celebration of our hotels’ local communities, makers, farmers, ranchers, fishermen and other artisans. So, in terms of expansion, we are very focused on destinations that have an amazing story to tell, where our hotels can serve as gathering grounds for those key local stakeholders.
Appellation's debut has been a long time coming, all while fighting through pandemic uncertainties and now high costs of capital. How have you helped navigate the brand through these challenges to both ensure a smooth launch and minimal interruptions to the development pipeline?
The last few years have been tough for our industry across the board, particularly in the capital markets. Our ability to continue to move forward is a testament to our relationships and the commitments our partners have made to seeing these projects through. We have been fortunate to navigate those waters, much in part due to the markets we are in. In certain situations, we have also turned to more innovative, non-conventional sources of capital, like [property assessed clean energy] financing for example.
What's your approach for determining the number of keys and overall amenity footprint that an Appellation property can sustain in a given market?
Naturally each market is different and requires a customized assessment of what that market can support. But generally, we are focused on hotels between 75 and 200 keys, and we are pretty steadfast when it comes to high levels of amenitization, since expansive F&B offerings and active public spaces are a major part of our identity.
Branded residences are a big trend in luxury hotels right now. What are your thoughts on this and do you foresee any applicability of mixed-use properties for Appellation?
There’s no question that branded residences serve as a fantastic way to bring the Appellation experience to the residential asset class. The concept also helps elevate profitability for hotel owners as those residences are often contributed into the hotel pool. We have put a lot of thought into how the Appellation experience translates into a branded residential product, and we have a few projects in our pipeline that include a branded residential component.
Where to next?
When evaluating new destinations for expansion, we identify burgeoning places with soul as well as strong culinary and cultural roots, sometimes waiting for their much-deserved moment in the sun. While we have a close eye on California and the greater West Coast, we certainly are open to markets beyond that region that feel right for our portfolio.
How do you see the Appellation brand evolving?
Each of Appellation’s hotels are uniquely crafted to meet the needs and feel of their respective locations. As we continue to expand, each new location will offer different guest experiences and amenities. My dad always says that hospitality has to continually evolve, and I like to think that our approach to a new project is met with a level of individuality and entrepreneurialism that ultimately sets us apart.
Adam and Larry Mogelonsky are partners of Hotel Mogel Consulting Ltd., a Toronto-based consulting practice. Larry focuses on asset management, sales and operations while Adam specializes in hotel technology and marketing.
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