Richard Kessler doesn’t just build hotels; he crafts experiences that blend luxury, culture, and art. After launching his career as co-founder and CEO of Days Inn of America in 1970, Kessler chose a path far removed from the predictable hospitality trajectory. When Days Inn was sold in 1984, he stepped back, exploring ventures in real estate and banking, accumulating insights he would later apply on a grander scale. Eventually returning to his hospitality roots, Kessler introduced America to the boutique hotel concept, inspired by European aesthetics and storytelling. Each property in his Grand Bohemian portfolio is meticulously curated around local history, art, and culture, designed not merely to accommodate but to captivate. From unique art collections to bespoke cultural offerings, Kessler’s hotels aim to engage guests intellectually and emotionally. As he continues to expand, Kessler’s ambition remains clear: making his hotels places where guests leave, as he says, “more informed, more excited, more passionate, more alive.”
Costa: Your journey in hospitality began with the co-founding of Days Inn of America in 1970. What inspired you to transition from a successful career with Days Inn to creating The Kessler Collection of boutique hotels?
Kessler: Cecil Day hired me in 1970 when he was selling his apartment business as his right-hand hand to learn the development business. Three months later, we launched Days Inn of America. My role was in charge of the development program, and two years later, he and I began setting up development companies that we owned to build Days Inns. In 1975, Cecil asked me to become the chairman and CEO of the development companies and the operating companies of Days Inn at the age of 29. In 1979, I launched a division for developing boutique hotels. The first one was the Mulberry Inn in Savannah, Georgia, and the second was the Heritage Inn in Orlando, FL. In 1984, Days Inn was sold, including the Boutique division. At that point, I decided to take a 30-day vacation to figure out my next steps. I didn’t want to go back directly into the hotel business because after 14 years of high-intensity building from coast to coast, I wanted something new. I developed a 500-acre planned unit development with retail, office space, and a gated community, located north of Savannah. I also developed a 1,000-acre international industrial and commercial park north of Atlanta. Simultaneously, I started a bank management company and over a five-year period opened a network of eleven Federally Chartered De Novo Banks.
I anticipated that these experiences would help me in the future when developing larger-scale projects. After completing these, I decided to go back to my roots, but this time solely focusing on bringing the boutique hotel concept from Europe to America. Remembering the success of the first two boutique hotels, I knew that I wanted to continue building the idea. In 1992, few people were developing boutique hotels. So, I pioneered it and created the Grand Bohemian brand with this in mind.
With properties primarily in the Southeastern United States, how do you decide on new locations and markets for The Kessler Collection? Each hotel in your collection has a distinct theme and story. Can you share your process for conceptualizing and bringing these unique designs to life?
We choose sites by thinking about where people want to be and not where they have to be. Places you want to be are driven by entertainment. Places you have to be are driven by pricing. If you go where people want to be, they will have money to spend. Once we find a location, we start thinking about what that city or town has to offer and its history. We asked, ‘What void does this city have?’ What does this city need? The Grand Bohemian concept is about art and entertainment and culture. It gives the opportunity to take the theme in many directions. Once I chose a theme, I then searched my inventory of art to tell the story. This process then defines the hotel’s story and what it will contribute to the market.
The Kessler Collection is renowned for its emphasis on art and music. How do you select the artworks and musical themes that define each property? Each hotel in your collection has a distinct theme and story. Can you share your process for conceptualizing and bringing these unique designs to life?
With each project I set out to develop something where the guests leave better than they arrived. I want them to leave more informed, more excited, more passionate, more alive, more rested, and energized from the experience. Disney did a lot of that early on and that has been a huge inspiration in my career. One thing Disney did was provide entertainment with threads of education. When kids or parents visit, there is something learned. We try to build these threads of entertainment and cultural growth in each hotel as well.
For example, I’ve been to Argentina three times. I enjoyed the tango dancers that are so curated and beautiful. It is exciting and colorful. When I think of Charlotte, North Carolina, it’s generally very conservative in taste. When I think about what that city needs, it needs color and excitement, and energy. My experience in Argentina came to mind. Charlotte needed the Argentine spirit. I then went to Argentina and found artists I liked. I purchased many pieces of original art as well as I pulled relevant art from my collection that would embrace and accentuated the concept. I also commissioned artists to create large paintings of gauchos and gaucho life to make one of the most beautiful hotels we’ve ever made, the Grand Bohemian Charlotte.
You’ve mentioned that you want your restaurants to be “half a grade better” than the hotels. How do you ensure the dining experiences complement and enhance the overall guest experience?
To ensure a memorable dining experience, it takes attention to menu development. We work with our talented chefs to create our pleasing and tasty foods. We do menu tests and tastings every three months, putting emphasis in food quality that is well presented. For example, if we have steak on the menu, we will bring in steaks from five different purveyors and rate them based on flavor and texture, then choose the best. Then we look at plating. We always like to see three colors on every plate because people do eat with their eyes. This curation of menu and food quality is what we are known for, which attracts many locals to our hotels and restaurants.
In your view, what are the key elements that transform a hotel stay into an unforgettable experience for guests?
You play to your strengths. Kessler’s one goal is to create exuberant guests. We excel at creating experiences and offering warm hospitality through intuitive service, curated menus, art, music, culture, and storytelling. If all of our staff, from valet and front desk staff to housekeeping and managers, focus on this one goal of creating exuberant guests, we have succeeded in transforming a stay into an unforgettable experience.
Your son, Mark Kessler, serves as President and COO, and your daughter-in-law handles interior design. How has involving your family influenced the evolution and culture of your company?
Anyone who has been in a family business knows that it is both wonderful and challenging. It can be difficult to separate business needs and personal feelings, as sometimes we disagree and have different opinions. In Mark’s case, he is good with people and developing relationships. He has a refined aesthetic sense about him, and his talented wife, Diana, is in charge of our hotel interior design. We work together to create the Kessler portfolio. We decide what a hotel is going to be and how to express it. The three of us strive to create unique and beautiful hotels to share with our Grand Performers and our guests.
Beyond hospitality, you’ve been involved in various philanthropic endeavors, such as supporting the arts and education. How do these initiatives align with your values and the mission of The Kessler Collection?
Talented people have always inspired me and have always had a passion for the arts. I love to work with artists, musicians, chefs, and anyone who wants to have fun with their talent, which is why our staff members are called Grand Performers. In every company under the Kessler portfolio, I prioritize hiring creative-minded staff because art is not just something we offer; it is who we are. We don’t build hotels, we curate them. In line with this core value, we offer numerous scholarships at colleges and other organizations to support students who are looking to pursue their passion for the arts.
What innovations or trends in luxury hospitality are you most excited about, and how do you plan to incorporate them into your properties?
One thing I’m excited about is the market itself. The travel industry is so vast that it’s demanding more creativity from developers. The market is getting more sophisticated every year, and guests are demanding more. Big companies like Disney have created higher expectations for guests, and for me, that challenge is exciting. For example, the tiny house movement and glamping are two new markets that are on my radar for the Kessler brand. I can create a development at a much lower cost per key than a traditional development with these concepts while delivering a 4-5 star experience.
Of course, you can’t ignore AI. My education at GA Tech was centered on operations research, which is the foundation of AI. I understand what it can do. In 1970, I knew then that this would be the future tool for business, and indeed for hospitality growth. I’m surprised it’s taken this long to become top of mind and relevant. We are just beginning to understand how to apply it. While it has a lot of applicability for Kessler in solving problems and understanding markets, a computer can’t create a beautiful smile. We are working through how to use this technology while continuing to provide the warm hospitality that our brand is known for as these systems become more sophisticated.
At Worth, we believe in “Worth beyond Wealth.” What does this philosophy mean to you personally and professionally?
Wealth generally implies financial wealth. However, there is wealth beyond this. When you look at worth, worth speaks to personal values. On a personal level, worth beyond wealth requires giving back through philanthropy. Philanthropy is an expression of the values people think are worthy of dedicating their wealth and their time. On a professional level, a project’s worth beyond wealth is a massive part in our development philosophy. We begin all projects by asking: What will this project be worth in this city? What is its value? What is missing in this city that it doesn’t have? All of these questions are addressing the worth question. When it comes to wealth, our properties are created to fill the void of what is missing and leave guests culturally rich. They leave our property having been moved, challenged, and changed. We want to challenge their intellect and challenge their beliefs. It’s a cycle. When they depart, they can share this wealth with their communities.
