The Ritz-Carlton Naples is preparing for a major renovation and expansion that will add suites and amenities and result in a redesigned lobby and guest rooms at the luxury hotel.
Most significantly, the AAA five-diamond hotel intends beginning in May to increase its number of guest suites by 57 — through the addition of 24 net keys — for a total of 92. When completed, the hotel will feature 474 guest rooms and suites.
The hotel, which is owned by Host Hotels & Resorts Inc., also plans to add a new Ritz-Carlton Club Lounge and upgrade the property’s swimming pools in one of the most ambitious capital improvement campaigns in its 35-year history.
“This project will significantly enhance and elevate the experience for all guests,” says Jim McManemon, the area general manager of the Ritz-Carlton Naples and the Ritz-Carlton Golf Resort in Naples, in a statement.
He adds the upgrades will “transform the resort to exceed today’s luxury standards.”
The improvements are being designed by Atlanta-based architectural firm Cooper Carry and Parker-Torres Design, of Boston. In addition, the resort’s sushi restaurant, DUSK, and its outdoor terrace are slated to be upgraded.
All of the renovations are slated to be completed by December 2022.
The last major renovation to the 280 Vanderbilt Beach Road resort occurred in 2013, though the hotel did undergo some enhancement three years ago.
James Risoleo, Host Hotels’ president and CEO, described the resort as one of the company’s “top-performing hotels” in an investor conference call in December.
“We see an opportunity to create meaningful value while also transforming the resort to meet today's luxury standards,” Risoleo says.
He adds that suites are “highly sought after by the hotel's loyal customer base” and generate roughly $800 per suite — nearly double the revenue per available room (RevPar), a key industry metric, of non-suite rooms.
Risoleo notes that the ongoing impact of the COVID-19 pandemic makes this Spring “an opportune time to renovate the guestrooms and to make (return on investment)-generating upgrades to the resorts pools, pool bar, and restaurants.”
At stabilization in 2023, Host Hotels expects the renovations and expansion to generate nearly $10.5 million in incremental, annualized earnings before interest, taxes, depreciation and amortization, which represents a 12% cash-on-cash return on the incremental investment based on the company’s underwriting, Risoleo told investors and analysts while discussing fourth-quarter earnings.
Host Hotels, which spun off from then-parent Marriott International Inc. in 1998, is today the nation’s largest lodging real estate investment trust.
In all, the company controls a hospitality portfolio of 80 properties valued at roughly $13 billion, including the Don Cesar in St. Pete Beach and the Tampa Airport Marriott, according to the company’s website.