Ritz-Carlton Plans to Spend up to $30M on Upgrades
By JENNIFER BELLANTONIO
The owner of the Ritz-Carlton Laguna Niguel said it plans to shell out $20 million to $30 million this year to upgrade and expand the luxury resort.
Chicago-based Strategic Hotel Capital LLC, the Ritz’s owner and operator, said it’s about to finalize new plans for rooms and recently got approval to add a spa, new ocean-view bar and gourmet coffee bar.
“By the end of the year, I would say that two-thirds of the hotel will be refurbished and under refurbishing,” said Laurence Geller, chief operating officer at Strategic, which is funding the renovation.
Faced with competition from the St. Regis Monarch Beach Resort in Dana Point, which opened last year, Geller said the Ritz-Carlton is upgrading to keep its place in the market.
“Our Ritz-Carlton will be the fierce competitor and will remain as it has been, the No. 1 hotel in that market,” Geller said. “We’ll spend the money to prove it.”
Geller said he also is gearing up for competition from the Laguna Beach Colony Hotel, a new high-end hotel being built by Marriott International Inc., which owns the Ritz-Carlton brand. That resort is expected to open in January.
“We find it very strange that Marriott is building a property to compete with the Ritz-Carlton when they own the Ritz-Carlton (brand),” Geller said.
Despite the tourism slump that’s hit luxury resorts hard, Geller said the timing is right to move on the renovation.
“I’m not Santa Claus,” he said. “I wouldn’t do it if I didn’t (think I’d get a return). We’re in the business of gambling money in terms of risking for reward based on professional expertise. We believe that this asset is so valuable for the long term.”
Since Sept. 11, Geller said business has been down at all of Strategic’s hotels. The company owns 30 some hotels, including in Manhattan and San Diego.
“We’re making a lot of money but nothing like we made in 2000,” he said.
Geller declined to give specific occupancy levels or revenue figures for the Ritz-Carlton.
But he did say Strategic decided now is a good time to do the upgrades while the hotel is at “less than 100% occupancy.”
The Ritz-Carlton expects to move first on its room renovation plans, which were described as “unique,” “luxury,” technologically-equipped and “knock-your-socks-off” different, according to Geller.
“We’re spending a damn fortune on it. My eyes sting when I think about it,” he said.
The Ritz-Carlton plans to add a spa and update its bar to make it livelier, according to Geller.
The hotel also plans to spruce up its landscaping and, in a year, enhance its food and beverage menus.
