Grand Bohemian Charlotte Autograph Collection
Grand Bohemian Charlotte Autograph Collection
Highgate announced a strategic partnership with The Kessler Collection in November. This included the creation, within Highgate, of the Kessler Hospitality Division and the addition to its management portfolio of several properties. The Kessler Collection will be able to grow using Highgate’s experience and revenue management strategies in lifestyle and luxury. The alliance also allows Highgate to enter new markets and expand their footprint.
Their careers at Ernst & Young briefly overlapped, and their relationship dates back a number of years. In 2024, the two met again while on vacation in Mexico. Both were meeting with partners and began discussing how working together could benefit them.
Kessler said that his company had considered an alliance to increase its profitability and grow the brand. Russo was contacted as a result of this process. Kessler said, “We discussed what Highgate offers to other companies in the industry and what I’m looking for growth.” Lodging. We…
considered other companies who might fit the bill, but we decided that Highgate would be the best partner to form this alliance. Highgate’s size and scale could help us to grow as well as increase our profitability. We are excited to have an alliance that allows us to grow and expand both our brand and management footprints.
Russo also recalled that in their initial discussions with Kessler they discussed how a partnership might help the Kessler Collection to grow. Russo explained that the growth of The Kessler Collection had been “hindered” because it was spending too much time dealing with tedious operations such as insurance or accounting.
An alliance, however, would benefit The Kessler Collection by allowing Highgate to assist them. He said that Highgate already does this for hundreds of hotel chains, due to its size and resources. We already have the resources, systems and processes to offload his daily tasks.
Russo said that the alliance would help Highgate scale up its growth in new markets and, with the Kessler Hospitality division formed, the company will have a team “ready to go” which they could leverage. The Kessler Collection culture is represented by a Highate group that focuses on Kessler’s assets. Russo also stated that the “cross-pollination,” between the two companies, has enabled their employees to pursue new opportunities because of the increased scale.
Kessler stressed that increasing profits across all assets is one of its key objectives. The Highgate team, with their experience in revenue-management, as well as its size and purchasing power, represent a significant asset.
Kessler’s Hospitality Division is also a key aspect to the alliance, he said, combining the Kessler staff who have moved to Highgate and the senior management team of that company. This blends successful models from both companies.
Prioritizing Growth
Highgate plans to improve the performance of the hotels that are part of its portfolio. This will be the first year the alliance has been in place. Russo said that Highgate’s technology and buying power are key tools to achieve this goal.
He said that Highgate is able to offer a unique technology platform, which makes it different than most competitors. “We heavily invest in a variety of technological platforms,” Russo explained. It will enable us to deliver differentiated results. Russo stressed that the growth of Highgate is also a priority. He recalled his and Kessler’s team already finding opportunities to expand into new markets. Russo explained that the number of properties available for assessment has increased significantly.
Highgate also has more options to brand itself, since it can look at other hotels through a different lens and turn them into Grand Bohemians.
Kessler also stated that Highgate would help ease the burden on The Kessler Collection’s operational side. This will allow the team to focus on building the brand of the company. Kessler, when asked to define success in the coming 12 months for the partnership, said that adding two properties per year would be a good measure. This will increase profitability.
Kessler’s brand must be strengthened. Kessler stated that when we began this search, and spoke to Highgate about our goals, they were: portfolio growth, focus on brand storytelling, and extension of brand Grand Bohemian, and profitability. Financial profitability is the number one priority.
Number two, portfolio growth. Portfolio growth was important when we met with Rich, and also with other people to discuss what success means for us. Highgate understands how we work now and knows that they are able to execute our vision. If they can find a solution that is beneficial to us, then we will be able to execute our vision.
Highgate will measure the success of this alliance by using some of the criteria that are used in the hospitality industry.
This includes ensuring it is beneficial to hotel owners, staff, and customers, as well as delivering a high-quality product. Russo stated that “we want the hotel owners to be happy with the performance of our company, that employees will work harder than the previous day, and we create a product we can scale up into interesting new markets.” “We are committed to delivering positive results for our customers, our employees and ourselves.”
