The Ritz-Carlton Hotel Company

Last updated

The Ritz-Carlton Hotel Company, LLC
Company type Subsidiary
Industry Hospitality
FoundedAugust 1983;40 years ago (1983-08)
FounderWilliam B. Johnson [1]
Headquarters,
U.S.
Number of locations
119 (2023) [2]
Number of employees
40,000 [3]  (2017)
Parent Marriott International
Website ritzcarlton.com

The Ritz-Carlton Hotel Company, LLC is an American multinational company that operates the luxury hotel chain known as The Ritz-Carlton. The company has 108 luxury hotels and resorts in 30 countries and territories with 29,158 rooms, in addition to 46 hotels with 8,755 rooms planned for the future. [4] [3]

Contents

The current company was founded in 1983, when the previous owners sold the Ritz-Carlton brand name and the Ritz-Carlton hotel in Boston, Massachusetts. [3] The brand was subsequently expanded to other locations. The company is currently a subsidiary of Marriott International. [3]

History

Ritz, Carlton and Ritz-Carlton in Europe

The story of the Ritz-Carlton brand begins with Swiss hotelier César Ritz, who was well known in the hotel industry as the "king of hoteliers and hotelier to kings." He redefined luxury accommodation in Europe with his management of The Ritz in Paris and the Carlton Hotel in London, among others. He and the renowned chef from his hotels, Auguste Escoffier, opened à la carte restaurants known as "Ritz-Carlton" on board the Hamburg-Amerika Line ocean liners SS Amerika in 1905 and SS Imperator in 1913. [5] The restaurants on those ships ceased operating in 1914 with the outbreak of World War I. Although Ritz died in 1918, his wife Marie continued the tradition of opening hotels in his name. [6]

The Ritz-Carlton in North America

The Ritz-Carlton in New York City, 1911 New York City - Ritz-Carlton Hotel, Madison Ave. & 46th St. LCCN2003678131.jpg
The Ritz-Carlton in New York City, 1911

The Ritz-Carlton Investing Company was established by Albert Keller, who bought and franchised the name in the United States. The first Ritz-Carlton Hotel in the U.S. opened in New York City in 1911. [7] It was located at 46th Street and Madison Avenue. Louis Diat ran the kitchens and invented Vichyssoise there. [8] In 1911, the Ritz company announced its intention to expand to Philadelphia and Atlantic City. [9] The Ritz-Carlton Philadelphia followed in 1913 [10] at Broad & Walnut streets, [11] designed by Horace Trumbauer and Warren & Wetmore. [12] The Ritz-Carlton Montreal opened in 1912, not owned by Keller as it was located in Canada. Keller's Ritz-Carlton Atlantic City opened in 1921. [13]

The first Ritz-Carlton chain

The former Ritz-Carlton Atlantic City, seen in 2011. Ritz AC.jpg
The former Ritz-Carlton Atlantic City, seen in 2011.

In the early 1920s, the Ritz-Carlton chain consisted of 15 hotels: [14]

The Boston hotel

The former Ritz-Carlton in Boston, 2004 Boston Public Garden, Boston, Massachusetts (66275863).jpg
The former Ritz-Carlton in Boston, 2004

In October 1926, 29-year-old Edward N. Wyner bought a third-acre parcel at the corner of Arlington and Newbury streets and formed a partnership called The Ritz-Arlington Trust with his father, George, and business associate, John S. Slater.

The trust sold $5.8 million of bonds to finance the construction of an apartment building to be called the Mayflower. The 18-story, 201-foot (61 m) brick building, designed by Strickland, Blodget & Law Architects, was far taller than anything else along Newbury Street at the time. Construction had started on the second floor when Wyner was persuaded by then-Mayor James Michael Curley to make the Mayflower a world-class, 300-room Ritz-Carlton Hotel, which opened May 19, 1927. Room rates were $5 to $15 per night; $40 per night for suites.

After a hugely successful opening, the stock market crash of 1929 and ensuing Depression brought financial difficulties. The Wyner family funded the hotel's operating losses during the early 1930s, although the interest on the bonds went unpaid. Still in 1933, when only 30 guests were registered in the hotel, Wyner turned on the lights in every guest room to give the appearance that the hotel was full.

Decline of the first Ritz-Carlton chain

The Philadelphia location was converted to an office building after only a few years in operation. The Atlantic City hotel was sold to Schine Hotels in the late 1940s, and later Sheraton Hotels in 1959. [13] The New York hotel was demolished in 1951, leaving only the Boston location. [15] Edward Wyner died of a heart attack on December 5, 1961. His six sons tried to continue operation of the Boston hotel, but were unable to overcome difficulties, and decided to sell.

The Blakeley years: 1964–1983

The former Ritz-Carlton Washington, D.C., 2004 Westin Embassy Row.JPG
The former Ritz-Carlton Washington, D.C., 2004

The unpaid interest on the bonds dissuaded many from trying to buy the hotel. But Cabot, Cabot & Forbes principal Gerald F. Blakeley Jr. was interested. After more than a year of legal work, Hale and Dorr succeeded at clearing the bond obligations, and in October 1964 Blakeley and associates Paul Hellmuth and Charles Spaulding acquired the Ritz-Carlton Boston for $5.8 million.

"Out of the 20 years I owned it, it made money three years. The other years it broke even, but from a public relations standpoint for CC&F, it was a tremendous asset," said Blakeley, who constructed a 19-story addition to the hotel in 1981, which included more function space, 80 more guest rooms, and 52 condominiums. [16]

In the late 1960s Blakeley obtained the rights to the Ritz-Carlton name in North America (with the exception of Montreal and New York). In June 1978, Blakeley was awarded the rights and privileges of the Ritz-Carlton trademark in the United States and was given a US Service Mark Registration.

In the 1970s, the Ritz-Carlton name was licensed to the builders of a new hotel in Chicago. The Ritz-Carlton Chicago opened in 1975 in a tower atop Water Tower Place. It joined the Four Seasons Hotels & Resorts chain in 1977, as there was no Ritz-Carlton chain at the time. Confusingly, it remained part of Four Seasons for decades, marketed as "The Ritz-Carlton Chicago (A Four Seasons Hotel)". It had no association with the modern Ritz-Carlton chain, though it used the name and the iconic logo. The property was sold in 2013 and left Four Seasons, joining the modern Ritz-Carlton chain as a franchise on August 1, 2015. [17]

In 1982, Blakely licensed the name to hotelier John B. Coleman for two hotels he was renovating, The Fairfax in Washington, D.C., and the Navarro in New York City. Coleman renamed them The Ritz-Carlton Washington, D.C., and The Ritz-Carlton New York in April 1982. Coleman paid Blakely a fee of 1.5 percent of each hotel's annual gross revenue for use of the name. [18] The two hotels eventually joined the modern chain that would be founded a few years later.

Current company

In August 1983, Blakeley sold The Ritz-Carlton Boston and the US trademark for $75.5 million to William B. Johnson, [1] a major Waffle House franchisee who was once the largest owner. He assembled a four-person development team in Atlanta, headed by hotelier Horst Schulze, [19] [20] to create the Ritz-Carlton hotel brand and established The Ritz-Carlton Hotel Company in its current form.

In 1988, Johnson subsequently obtained the exclusive rights to The Ritz-Carlton brand name throughout the world except for the Hôtel Ritz Paris, The Ritz-Carlton, Chicago, and the Ritz-Carlton Montreal. Unlike The Ritz-Carlton, Chicago and the Ritz-Carlton Montreal, Hôtel Ritz Paris is not associated with The Ritz-Carlton Hotel Company, instead joining The Leading Hotels of the World.

The corporate years: 1983–1999

The Ritz-Carlton at the Autostadt in Wolfsburg, Germany: completed in 2000, it was the first hotel of the company to open in Europe. Ritz-Carlton, Wolfsburg (P1100712).jpg
The Ritz-Carlton at the Autostadt in Wolfsburg, Germany: completed in 2000, it was the first hotel of the company to open in Europe.

From 1951 to 1975, The Ritz-Carlton Boston had been one of only two Ritz-Carlton hotels in the US. The other was the independently owned Ritz-Carlton Atlantic City which had since been converted to condominiums. Johnson's company paid the Atlantic City establishment to abandon its name and rename itself The Ritz Condominiums. [13]

Johnson would later enlarge the company from just the Boston property to 30 hotels worldwide in just 10 years. He obtained financing to do so from Manufacturers Hanover Trust of New York in 1983 in the amount of $85 million secured by The Ritz-Carlton Boston. This loan was refinanced in 1989 by Manhattan Tops USA of New York for $136.5 million and again in 1994 by The Sumitomo Bank of Japan. By 1996, this mortgage was in default and the interest and penalties brought the total debt to $214.8 million.[ citation needed ] By splitting this mortgage note into three parts, Sumitomo Bank was able to unbundle The Ritz-Carlton Boston from the trademark rights to the Ritz-Carlton brand worldwide.

Blackstone Real Estate Acquisitions bought The Ritz-Carlton Boston at auction for $75 million in February 1998. A month later, Marriott International acquired the hotel from Blackstone for $100 million. Marriott International, which franchised and managed over 325,000 rooms, then bought The Ritz-Carlton Hotel Co. and rights to the Ritz-Carlton hotel chain worldwide from Johnson for $290 million in a two-part transaction completed in 1998.

Disposal of the historic Boston property

In 1998, Christopher Jeffries, founding partner of Millennium Partners, obtained The Ritz-Carlton franchises from Marriott for four hotel properties under construction: two in Washington, one in New York City, and one in Atlanta, Georgia. In addition, Jeffries was searching for a brand affiliation for the new 155-room hotel and 270-luxury condominiums he was constructing as part of Boston's 1,800,000-square-foot (170,000 m2) Millennium Place, a mixed-use complex on lower Washington Street. Due to noncompetition clauses, the only way he could obtain a second Ritz-Carlton flag in Boston was to own the existing Ritz-Carlton.

Millennium Partners acquired the original Ritz-Carlton Boston for $122 million (though it had sold for just $75 million less than two years prior) and spent $50 million for renovations. Marriott agreed to allow The Ritz-Carlton affiliation for the condominium complex, known as The Residences at The Ritz-Carlton, sharing all of the services of the hotel.

From 2001 to 2007, Boston was home to two Ritz-Carlton hotels that faced each other across Boston Common. The Ritz-Carlton, Boston Common opened in 2001.

In November 2006, Taj Hotels, a subsidiary of the India-based Tata Group, purchased The Ritz-Carlton Boston from its owners, Millennium Partners for $170 million. The Ritz-Carlton Boston became the Taj Boston on January 11, 2007. [21]

Development since 2010

The company grew under the leadership of President and COO Horst Schulze. Schulze instituted a company-wide concentration on both the personal and the data-driven sides of service: He coined the company's well-known customer/employee-centered motto, "We are Ladies and Gentlemen Serving Ladies and Gentlemen" and the set of specific service values (standards) on which The Ritz-Carlton employees base service through the present day. [22] Under his leadership the hotels earned an unprecedented two Malcolm Baldrige National Quality Awards [23] and grew from four to forty U.S. locations. [24]

During this time, The Ritz-Carlton also became known for its influence on service in a wide range of industries, through the creation of The Ritz-Carlton Learning Institute and The Ritz-Carlton Leadership Center, created by then-Ritz executive Leonardo Inghilleri, who was an architect of the Ritz's second Baldrige award, where executives from other companies worldwide in many disciplines come to learn The Ritz-Carlton principles of service. [25]

In 1995, Marriott International purchased a 49% stake in The Ritz-Carlton Hotel Company, and in 1998, they purchased an additional 50% stake in the company, giving it 99% ownership of the company. Schulze and other executives (including Leonardo Inghilleri, Robert A. Warman and Peter Schoch) left to form the West Paces Hotel Group, which took the name of its primary brand, Capella Hotels, in December 2011. [26] In 2007, the partners also formed Solís Hotels. [27]

The Ritz-Carlton Hotel Company claims it is headquartered in Chevy Chase, Maryland, though the headquarters address is the Marriott address in Bethesda, Maryland, located in the Washington, D.C., MSA.

The Ritz-Carlton Hotel Company partnered with Bulgari in 2001 to operate a chain of hotels owned by and operated under the BVLGARI brand. The company currently has marketing agreements with Bulgari Hotels & Resorts, the Cosmopolitan of Las Vegas, the privately owned Ritz-Carlton Montreal and The Ritz Hotel London.

Simon Cooper joined Ritz-Carlton in 2001 as president and Chief Operating Officer, taking the helm from Horst Schulze. Cooper's mandate was to grow the chain through hotel expansion and product diversification. Under Cooper's watch the company has aggressively expanded its hotels and added The Ritz-Carlton Residences, private residential units, and The Ritz-Carlton Destination Club, fractional ownership residences, to the company's development program.

August 12, 2010, Ritz-Carlton announced its new president and Chief Operations Officer would be Herve Humler, one of the founders of the 1983 company, who will be responsible for leading brand operations and global growth strategy. [28]

In October 2011, Angella Reid, the General Manager of The Ritz-Carlton Hotel in Pentagon City, Virginia was appointed as White House Chief Usher, becoming the first woman to serve in that post. [29]

On July 10, 2020, Forbes mentioned how luxury brand collaborated to attract luxury buyers, Asprey and Ritz Carlton partnered for their 'purple water beauty amenities,' which includes body lotions and shampoos within the hotel rooms.

Properties

The Ritz-Carlton currently operates a total of 115 properties, with 44 in the United States and Canada, 38 in Asia and the Pacific, 14 in the Middle East and Africa, 11 in Europe, and 8 in the Caribbean and Latin America.[ citation needed ]

Notable properties

The Ritz-Carlton Berlin Berlin - Beisheim Center & P5 (3).jpg
The Ritz-Carlton Berlin
The Ritz-Carlton Montreal Ritz-Carlton Montreal 18.jpg
The Ritz-Carlton Montreal
The Ritz-Carlton Jeddah Ritz carlton jeddah.jpg
The Ritz-Carlton Jeddah
The Ritz-Carlton Georgetown Ritz-Carlton Georgetown.jpg
The Ritz-Carlton Georgetown

Former properties

Asia

  • Jimbaran, Bali, Indonesia: The Ritz-Carlton Bali, Resort & Spa – Opened on November 29, 1996, as the first Ritz-Carlton resort in Asia, [47] management terminated on March 31, 2009. [48] Property reopened on April 1, 2009, as Ayana Resort & Spa Bali, [49] with sister hotels also opened within the 90-hectare integrated resort such as Rimba Jimbaran – Bali (opened 2013), The Villas at Ayana Resort Bali, and Ayana Residences Bali. The name "The Ritz-Carlton Bali" currently refers to another resort opened on February 2, 2015, in Nusa Dua, located on the opposite side of the South Kuta area (not to be confused with Mandapa, a Ritz-Carlton Reserve property also opened in 2015 in Ubud).
  • Gangnam, Seoul, South Korea: Renovated and reopened as the Le Méridien Seoul in 2017. [50]

Europe

North America

Australia

  • Sydney Ritz-Carlton Double Bay: management terminated 2001 [63]

Accommodations

Historical

USNon-USTotal
2007 [64] Properties     36     34     70
Rooms11,6279,97821,605
2008 [65] Properties     37     33     70
Rooms11,62910,20421,833
2009 [66] Properties     40     34     74
Rooms12,11510,17122,286
2010 [67] Properties     39     35     74
Rooms11,58710,45722,044
2011 [68] Properties     39     39     78
Rooms11,58711,99623,583
2012 [69] Properties     38     42     80
Rooms11,35712,41023,767
2013 [70] Properties     37     47     84
Rooms11,04013,95024,990
2014 [71] Properties     39     48     87
Rooms11,42414,09025,514

0

From 2015

North
America
EuropeMiddle E.
& Africa
Asia &
Pacific
Caribbean
Latin Am.
Total
2015 [72] Properties40121027796
Rooms11,8392,9293,1667,2311,96627,131
2016 [73] Properties40121227798
Rooms11,8392,9253,8356,9981,96627,563
2017 [74] Properties401312307102
Rooms11,6853,0813,8357,5021,96628,069
2018 [75] Properties391313306101
Rooms11,3983,0793,8677,5201,78627,650
2019 [76] Properties391313338106
Rooms11,4103,0793,5238,2072,08128,300
2020 [77] Properties391313368109
Rooms11,8333,0803,5238,7542,08129,271
2021 [78] Properties3912143810113
Rooms11,8392,8353,7639,2222,37230,031
2022 [79] Properties411215389115
Rooms12,5082,6893,9889,1922,00730,384
2023 [2] Properties421215419119
Rooms12,7872,7033,9799,7032,00731,179

Cruise ships

In 2018, Ritz-Carlton announced that it would enter the cruise market. Construction problems at the Spanish shipyard and COVID-19 delayed the launch of the first ship, the Evrima, originally set to January 2020. [80] Inauguration cruise has been moved numerous times due to pandemic: April 2021, [81] November 2021 and currently May 6, 2022. [80] The cruising arm of Ritz-Carlton would operate under the brand "The Ritz-Carlton Yacht Collection". [82] It was announced that The Ritz-Carlton Yacht Collection would join the Marriott Bonvoy, Marriott International's travel program effective November 9, 2021. [83] [84] After a number of delays, Ritz-Carlton Yacht Collection finally took guests onboard its first ship, Evrima, in October 2022. The ship sailed from Barcelona, Spain. [85] More ships, the Ilma and the Luminara, are under construction at Chantiers de l’Atlantique. [86] [87]

See also

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