New Luxury, Upscale Brands Plan Downtown Builds

After years of focus among hoteliers and developers on lower-tier hotels and a dearth of development in high-tier categories, two hotel companies last week launched new brands in the upper upscale and luxury segments. Hotel industry veteran and former Ritz-Carlton president and COO Horst Schulze, now president and CEO of the West Paces Hotel Group, last week launched Solis Hotels and Resorts, a new luxury and resort brand, which plans to launch six properties through 2008.

Meanwhile, Minneapolis-based hotel development and management company, Graves Hospitality Corp., last week launched Graves Hotels.Resorts, with the opening of a rebranded and redesigned Le Meridien property in Minneapolis. The Minneapolis property is the first of five underway, including new builds in New York and Chicago.

Following the expiration of a non-compete clause with Ritz-Carlton, Schulze last week said of his tenure with the luxury hotel company, "the painting was painted and the magic lies in the creation." As such, Schulze—along with a management team of former Ritz-Carlton executives—is picking up his brush to create an initial six properties in such markets as Phoenix, Atlanta, Chicago, Orlando, San Antonio and Frankfurt, Germany, as there is a "window for another brand" in the segment, he said.

Described by Schulze as a "dream team of the hotel industry," other Ritz-Carlton alumni developing West Paces' new Solis brand include former vice president of operations Robert Warman, now executive vice president and COO; Philip Keb, former vice president of engineering, now executive vice president of development; C. Scott Rohm, a former vice president, now senior vice president of operations; and former vice president of culinary services, Peter Schoch, now vice president of food and beverage.

The first property and only conversion in the Solis portfolio is slated to open in Chicago next year with 454 luxury guest rooms and suites. Solis plans to open four new builds between mid- and late 2007: a 150-room hotel San Antonio, a 144-room property in Atlanta, a 277-room resort in the Phoenix/Scottsdale area and a 348-room hotel in Frankfurt. In early 2008 it will open a property across the street from the Orange County Convention Center in Orlando with 454 guest rooms and suites.

Schulze said a Solis property eventually will come to New York, saying, "you're not a viable global company until you're in New York."

Schulze last week said the properties will cater to upscale travelers and include service guarantees to guests.

Chief administrative officer Owen Dorsey said West Paces soon will announce another, even higher-tier brand.

Meanwhile, following the launch of its flagship Graves Minneapolis property last week, Graves Hospitality has five upscale projects underway, according to president Benjamin Graves, who said its city properties—including new builds underway in both New York and Chicago—largely will be geared to business travelers. Graves described the brand as "a sophisticated true modern luxury brand." The portfolio also includes leisure resorts in such places as Costa Rica.