When was the last time you made a hotel reservation and were asked,
"How can we make your stay as wonderful as possible?" If all goes
according to plan, that's exactly what will happen when you call a
Capella Hotel to book a room.
Perhaps you'd like to in-line skate in Central Park at midnight? No
problem; they'll arrange it - and send Security along with you.
Do you go absolutely mad for moules marinière? They'll
make it for you - and teach you the recipe, if you wish.
Want to visit Roman ruins, see cave paintings, or tour a banana
plantation? They'll charter a plane. Have the urge to dine in the
kitchen of a Michelin three-star restaurant? They'll call the
chef.
And what if you don't know what you want? "We'll give you a list of
ideas," says Horst Schulze, Capella's founder, president, and
CEO.
With fewer than 100 rooms at each property, Capella Hotels &
Resorts - named for the alpha star of the constellation Auriga -
will offer a level of personalized service that few hotels in the
world can match, says Schulze. "The staff will operate as if they
had a sixth sense," he proclaims. "From the driver waiting at the
airport to the greeting - like you're arriving at a friend's estate
- to every element of your stay and departure … [like] giving each
guest the kind of pillow he wants. You can't do that in a 300- or
400-room hotel."
Schulze says that Capella will stand out, even in the rarefied
world of superluxe lodging. And while a six-star rating doesn't
exist, that seems to be exactly what he's shooting for. All Capella
hotels will have spas, boutique shopping, and gourmet restaurants;
some will have golf courses and/or marinas. Two of the five Capella
hotels currently under construction will anchor larger developments
that include sole- and fractional-ownership homes and
apartments.
But if you can't afford to stay at a Capella hotel, where room
rates will likely match existing suite rates at five-star hotels in
the same region, you can still experience lodging Schulze-style:
He's also creating a second "brand," a company called Solís Hotels
& Resorts, designed to appeal to the traditional four- and
five-star-hotel guest. Priced "just below the closest competition,"
Solís (pronounced so-LEES) will target the same customers as
upscale chains such as Four Seasons, Ritz-Carlton, and
Fairmont.
Think of it as one brand for the haves … and another for the
have-mores.
At press time, Schulze had five Solís hotels in
progress and was in negotiations on several more. Capella has five
properties under construction, with more in development. But since
none of these new hotels is actually up and running yet (the first
Solís will open in Chicago in September; the first Capella in
Castlemartyr, Ireland, in December), Schulze can only point to his
experienced management team, to his track record at Ritz-Carlton,
and to the more than $1 billion in investment capital already
committed to the company as evidence that there's no doubt in his
mind that both brands will go on to become wildly successful.
"The idea that we won't succeed is impossible," he says
matter-of-factly. "The only question is how long it will take."
Industry analysts say Schulze is unveiling the right product at the
right time. After weathering the three-year downturn that followed
the events of September 11, the hotel industry is hot again, with
investors sinking billions into new and existing properties. The
trade publications are talking about "record levels of activity,"
and it's the luxury segment of the industry that's leading the
pack.
"The time is right," concurs R. Mark Woodworth of PKF Consulting, a
research firm specializing in the lodging industry. "I definitely
believe there's room for a new hotel player at the highest levels
of luxury."
"Horst has been doing his homework for years," chimes in
Gene Ference, president of HVS/the Ference Group. "He and his
executives, many of whom came from Ritz-Carlton, have everything it
takes for success."
And how do Schulze's competitors feel about all this? One can only
guess, because no one's talking. When asked to comment on Schulze's
plans, the corporate offices at Four Seasons, Mandarin Oriental,
Aman Resorts, Le Meridien, Marriott (which now owns Ritz-Carlton),
and Ritz-Carlton all said they'd prefer not to comment, other than
to say, "We wish him well." (And some didn't even say that.)
You can almost see Schulze, who is 65, rubbing his hands together,
dying to start getting heads into beds. For the time being, though,
he's traveling the globe (he's flown close to 500,000 miles in the
last three years), calling on banks and investors, and working on
real-estate deals.
"Once we have an infrastructure of developers on board," he
explains, "I can go back to actual operations. Right now I'm like a
fish out of water. What I love is the daily business, the service.
And I love making a profit."
But he's careful to qualify that last comment. "Many hotel
companies believe the way to make money is by cutting costs," he
says. "I prefer to do it by creating excellence."
Building a Brand
The seeds for all of this were planted in 2002, when Schulze
founded the Atlanta-based West Paces Hotel Group shortly after
leaving Ritz-Carlton. He started off by signing management
contracts to run existing hotels for their owners, and today West
Paces oversees an impressive roster of 11 properties, including the
Carefree Resort in Arizona and the Daufuskie Island Resort in South
Carolina.
But when Schulze talks excitedly about his plans, what really gets
him going are the two brands he's creating from the ground up. All
Solís and Capella hotels will be privately owned - but Schulze and
his team will manage them.
Solís Hotels will occupy new as well as existing (but fully
renovated) properties. In Chicago, for instance, Schulze and his
development partner are spending $125 million to convert the
46-year-old, 39-story Hotel 71 into the Solís Chicago Hotel
Condominiums.
"Today there's a lot of concern about chemicals," he says. "So all
Solís amenities will be organic, and so will much of the food."
When it comes to amenities, he says the hotels will have all the
best bells and whistles but will emphasize service amenities, such
as on-site activity directors, great bartenders, and greeters
(rather than doormen) at the entrance. He's asked his team of
architects and designers to create classic, high-quality interiors
designed with comfort foremost in mind.
The Capella experience, on the other hand, will be more about wants
than needs. Location is critical to the Capella experience, so
Schulze's team is working triple time to secure its one-of-a-kind
settings. The flagship Capella Pedregal in Cabo San Lucas, for
example, will perch on a spectacular 24-acre parcel where the
Pacific Ocean meets the Sea of Cortez. The two Capellas in Ireland
will be built in medieval castles.
"Capella is for travelers who desire enriching experiences and
superb service rather than ostentatious displays of consumption,"
Schulze says. "It will be elegant but with lots of heart. Elegance
without warmth is arrogance."
Portrait of the Artist as a Young Hotel Man
Born in Winningen, Germany, Schulze was just 11 years old when he
announced that he wanted to work in a hotel; never mind that he had
never even set foot in one. Three years later, he quit school and
went off to be a busboy at a hotel 110 miles from home. His mother
warned him to behave, he remembers, because the hotel was fancy,
and the guests were "important people."
Shortly after he started, he had his first life-changing epiphany.
"The maître d' of the restaurant was exceptional in his position,"
Schulze remembers. "When he entered the room, you felt it. People
felt honored when he came to the table. He was as important to the
guests as they were to him. Some see service as menial, but it was
clear to me early on that it was an art. I knew from then on ...
hotels would be my life."
Schulze's next seminal experience took place at the Beau-Rivage in
Lausanne. "The place was a palace," he recalls. "Everything about
it exuded sophistication: the original art, the huge chandeliers,
the painted ceilings, the view of the lake. It made an enormous
impression. There was no way I could afford to be there as a guest.
Yet, I had the same beautiful things around me. Why not enjoy
it?"
Schulze felt the same giddy excitement at the Plaza Athénée in
Paris, where the clientele included Gary Cooper and Brigitte
Bardot. "My little room was barely as wide as a bed," he says,
"but I was spending my days in the same surroundings as the Aga
Khan. It just confirmed for me that I had chosen the right career.
And that feeling has stayed with me ever since."
It was in 1959, while working as a waiter for the Holland America
Line, that Schulze got his first glimpse of America. The ship
docked in Hoboken, New Jersey, and the crew had a two-day leave.
"All my friends ran off the boat, heading for the Empire State
Building or Times Square," he recalls. "I went straight to the
Waldorf-Astoria."
Schulze went on to management positions with Hilton and, later,
Hyatt. When he quit in 1983 to join Ritz-Carlton, the company had
just three hotels. "My father-in-law called and said, 'Are you
crazy?' " Schulze remembers. " 'You're leaving Hyatt for a company
with no hotels?' " Schulze was named Ritz-Carlton's executive vice
president in 1987 and president and chief operating officer a year
later.
The catchy Ritz-Carlton motto - We Are Ladies and Gentlemen
Serving Ladies and Gentlemen - may sound like a slogan dreamed
up by a slick branding firm, but it's actually something Schulze
wrote in an essay when he was 15, while working as a busboy and
attending hotel school once a week.
"It was the only 'A' I ever got," he laughs, "and so of course I
remembered it. In this business, we're not servants; we're
professionals. If you want respect, you have to create
excellence."
Anyone who has ever worked for Schulze knows that "creating
excellence" is more than just a motto to him - it's his raison
d'être, his religion.
"If an ashtray was dirty, Mr. Schulze would pick it up himself,"
remembers Pascal Bertrand, who was with Ritz-Carlton for 10 years
and is now the general manager of the luxurious Legends Resort in
Mauritius. "How often do you see the COO doing that? Then he'd
bring it up to our office to remind us what it takes to be the
best."
"Few company leaders roll up their sleeves and get involved like
Horst does," agrees Wendy Reisman, who spent eight years with
Ritz-Carlton and now runs her own Washington, D.C.-based PR firm.
"And few are as motivating. When Horst got up to speak, the entire
room sprang to attention."
At one point in his Ritz-Carlton days, Schulze set out to lure a
group of Michelin-starred chefs into leaving their European
restaurants and coming to work for him in the United States. One
of them was Guenter Seeger. Today, as chef/owner of Seeger's in
Atlanta, Seeger praises Schulze for devotion not only to "heads in
beds," but also to serving the finest food.
"He's one of the very few hoteliers who has a vision for the
culinary part as well," Seeger says. "If anyone can do a six-star
hotel, it would be him."
In 1999, Schulze and his corporate food-and-beverage director
invited their 45 executive chefs and 45 hotel food-and-beverage
directors to join them on a whirlwind culinary and wine tour of
France and Germany. The eight-day trip was an epic undertaking that
involved moving about 90 people and their luggage around Europe;
arranging tours, tastings, and vineyard visits; and securing
reservations at some of the hardest-to-get-into (and most
expensive) restaurants in the world, including many Michelin
three-stars. The goal was twofold: to inspire the employees and to
reward them for all their hard work.
Schulze was also known for having an almost gurulike effect on his
staff and, at the same time, maintaining an approachable,
down-to-earth style. "I've never known a company president who knew
almost every employee's name," Reisman says. "And he really,
sincerely cares. Horst was totally accessible by phone and by
e-mail. He is about as loyal as they come."
Also legendary was Schulze's policy that empowered each and every
Ritz-Carlton employee - from chambermaid to busboy to corporate VP
- to do whatever was necessary to satisfy an unhappy guest.
(Schulze says the policy will be the same in his new companies, as
well.) As a result, one year, 96 percent of Ritz-Carlton guests
surveyed said they would "recommend or repeat" the experience, an
unprecedented display of customer satisfaction.
Under Schulze, the company also enjoyed extremely low employee
turnover: 24 percent in 2000, compared with 100 percent, on
average, for the industry as a whole. So now that Schulze is hiring
again, it's no surprise that he has his pick of the pack.
Hans Van der Reijden, for example, left his management post at the
Ritz-Carlton Bali to work for Schulze as the general manager of the
Solís Chicago. "I had always envied the people who got to work with
Horst creating Ritz-Carlton," he reports. "Leaving Bali? I didn't
give it a second thought."
When Schulze left Ritz-Carlton in 2001 to form
West Paces, he was responsible for a company with $2 billion in
sales. He held a position most hoteliers would be silly to
fantasize about, with cash compensation alone estimated at more
than $1 million a year.
"It was a beautiful time, but that painting was painted," he says,
explaining why he left the company when he did. "For me, the magic
lies in the creation - and I wanted to create. It was time to start
a new canvas."
Whether Schulze creates a masterpiece remains to be seen. But he,
of course, is optimistic. "If you do your homework, concentrate on
your vision, and stand up when you fall … you will win," he says.
"Nobody would say I don't know the business. And anyone who knows
me knows I'm relentless."