Highgate and The Kessler Collection have announced a new strategic alliance that will transfer management of several of Kessler's hotels to Highgate.
A news release announcing the deal notes Highgate is taking over operations multiple properties, but highlighted three in particular:
- The Casa Monica Resort & Spa in St. Augustine, Florida.
- The JW Marriott Savannah Plant Riverside District in Savannah, Georgia.
- The Grand Bohemian Lodge Greenville, in Greenville, South Carolina.
The release describes the deal as a combination of "Kessler’s creative vision, pioneering spirit, and legacy of building high-performing hotels with Highgate’s proven ability to create long-term value through industry-leading revenue growth strategies, operational mastery, and disciplined investment execution — forming a platform uniquely positioned to maximize asset performance and redefine excellence in the luxury and lifestyle space."
Kessler has historically developed, owned and managed its own hotels, but this is not the first time Highgate has assumed management of a property previously developed by Kessler. Highgate took over the property that is now the Hotel Bardo Savannah — formerly the Mansion on Forsyth in Savannah — in 2022 to New York-based real estate developers Left Lane.
As part of the deal, Highgate will create a new Kessler Hospitality division that will include Kessler's current property-level employees and management-focused corporate leaders.
“Our mission has always been to create inspired guest experiences rooted in artistry, individuality and purpose,” Mark Kessler, president of The Kessler Collection, said in the news release. “When we looked for a partner to help us take the Grand Bohemian brand into its next chapter, Highgate stood out. Their operational discipline, deep revenue expertise, and ability to leverage technology to improve oversight and profitability made them the clear choice to complement our creative vision and expand our portfolio.”
In all, Kessler owns 10 properties, with all but one in the southeast U.S. Highgate invests in and manages hotels across the globe, with a portfolio of more than 400 properties.
“This alliance brings together two industry leaders with a shared vision for creativity, excellence and growth,” said Highgate Principal Richard Russo. “By combining Kessler’s creativity and design-forward sensibility with Highgate’s investment acumen and operational expertise, we’re creating meaningful long-term value for these exceptional assets and setting a new standard for performance in the luxury and lifestyle space. We’re proud to welcome many talented Kessler team members to Highgate — their vision and ingenuity further strengthen our platform and reinforce Highgate’s ability to lead in this important area of hospitality.”