ATLANTA -- After 18 years as president and chief operating officer
at Ritz-Carlton, Horst Schulze will step down from the luxury hotel
firm in the first quarter and, for a while at least, go fishing.
He will remain on the job until Simon Cooper, his replacement,
takes over on Feb. 19. Cooper is president of Marriott Lodging
Canada and the former president and chief operating officer of
Canada's Delta Hotels & Resorts.
Schulze, who turned 60 this month, will remain in the newly
created position of vice chairman for at least a year.
He said his immediate plans include a family vacation and some
fishing at his hideaway on Amelia Island, Fla.
"I want to distance myself from the industry for a moment and
think about my life," Schulze said.
He announced the news to the Ritz-Carlton staff shortly after
Christmas.
Schulze is a native of Germany, but has spent most of his
professional life in one hotel firm or another, with stints in
Paris and London.
He joined the company in 1983 as vice president of operations
and general manager of the Ritz-Carlton, Buckhead, in Atlanta. He
was named president and chief operating officer of Ritz-Carlton in
1988.
In the mid-1990s, Schulze guided the company through an
acquisition by Marriott International and implemented a growth plan
that expanded its portfolio from six hotels in 1988 to 38
properties.
Ritz-Carlton said it expects to add 22 management contracts in
the next two years.
Schulze calls himself the "first employee" of Ritz-Carlton, and
while leaving the firm would be difficult, he said, "Going away is
painful, but you only can delay that pain."
The firm he leaves behind is one of the foremost luxury
hoteliers in the world, with a diverse international portfolio and
a reputation for outstanding customer service and overall
quality.
"I think we created something exceptional," Schulze said.
He said he was most proud of developing a company where
"employees have value and are truly empowered."
Ritz-Carlton's employee turnover rate is well below the industry
average, in part because employees are empowered to resolve
situations on their own, without consulting management.
"To me, this was never seen as work," Schulze said. "Of course,
it is a lot of work; when you travel 200 days a year, believe me,
it's work. But I saw it as something you create, to see business as
an art form."
Schulze said Ritz-Carlton, when still a small hotel company,
closely studied a number of firms in other industries about how to
improve its operations. One of the results was a scientific
determination of what a customer wants.
"Not just a comment card, but finding out what does the guest
want, what does a meeting planner want?" said Schulze. "We cannot
afford to make mistakes; we cannot afford to squeeze the product in
the short-term to make a profit. We had to change this and do
what's right, and not make just a short-term decision."
So what's in store for Horst Schulze? He said he would think
about entering other industries.
"Of course, there will always be a relationship and some kind of
connection [with the hotel industry], but, on the other hand, I
have to do some new painting somewhere," said Schulze. "I never
retire; I'm not the type to retire."