Kimpton Hotels & Restaurants CEO Mike Depatie leads a pioneer enterprise in the boutique-hotel sector, which operates 60 properties and is expanding both within the Southwestern U.S. and into the resort segment. A former executive with Residence Inn, La Quinta and Sunterra, Depatie joined Kimpton in 2003 and became CEO in 2006. He spoke with hotels editor Danny King.
Q: Kimpton's two largest U.S. markets are the San Francisco and Washington, D.C., areas, which appear to be on the opposite end of the spectrum when it comes to hotel performance. How is Kimpton doing in those two markets?
A: San Francisco's got fantastic dynamics: a great leisure segment, strong group segment, the technology sector and no new supply. And Washington is suffering from the sequester, which has had a marginal impact on all of the players in D.C. But we're generally priced higher [than what government agencies usually spend], so it doesn't affect us as directly.
Q: You recently debuted in Sedona, Ariz., and are planning to enter San Antonio by building on the site of the old Pearl Brewery. Why the focus on the Southwestern U.S.?
A: Sedona made sense, in that we're looking to have a bigger presence in the resort market. With business customers, it's less about experience and more about efficiency. And we're still in those [urban] markets. But it's a natural progression for us to go into leisure-oriented markets. As for San Antonio, the River Walk district has always been a strong submarket. And we're one of the leading players in adaptive reuse.
Q: On the flip side, your clientele base would suggest that you would've been in Austin, Texas, already, yet Kimpton just announced that it'll debut operations there in 2015. Why the wait?
A: We should've been in Austin a long time ago. The project we're working on now, we originally committed in 2007, and we would've been open by now if it wasn't for the economic downturn.
Q: What, in your opinion, defines a boutique hotel?
A: There's a lot of confusion, and I think the term is overused. But we've created our own cultish kind of brand that's just Kimpton. They're four-star hotels with about 200 rooms and a chef-driven restaurant, and the design is unique, kind of eclectic and bohemian. There's nothing cookie-cutter about it.
Q: Many hoteliers are trying to limit their food and beverage operations, yet Kimpton has always embraced having a full-service restaurant. Why?
A: If you're going to have a four-star hotel, a restaurant is pretty much required, and if we're going to have a restaurant, it's going to be a great restaurant, and it won't feel like a hotel restaurant. It's an important distinction, and one that's not easy to copy or execute.
Q: You worked with companies such as Residence Inn, La Quinta and Sunterra. How have those experiences informed your approach at Kimpton?
A: I've always been with companies that were both real estate intensive and that were in the process of building the brand. And we were always doing something a little below the radar. When I was with Residence Inn, we couldn't get financing and nobody had any interest; that all changed when we sold the company to Marriott in 1987. Sunterra was the first public company in the timeshare space, and nobody knew how that business worked. And when I got into the boutique hotel business, nobody thought much about them. Now it's a legitimate segment, and I'm not so sure we're below the radar anymore.
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