Bacara Resort To Come Into Its Own In 2nd Year Of Operation

SANTA BARBARA, CA— While the Bacara Resort & Spa here may have had a tough opening year, the ultra luxury property nestled between the Pacific Ocean and Santa Ynez Mountains, has made some changes and is looking forward to more profitable times. Dick Holtzman, principal and managing director of the 360-room resort, who is overseeing its operations, said swift changes in management and a strong sales and marketing push will lift Bacara to a leadership position in the marketplace here as it enters its second year of operation. The $220 million resort opened in September of 2000 after more than 22 years of planning and development by owner Alvin Dworman. But a slow first year (timed with a slowing economy) has many critics counting down to the resort’s demise. To pump up the property’s performance, Holtzman hired Katharine Monahan as general manager, who officially starts at Bacara Sept. 9. Monahan boasts a significant amount of luxury hotel experience. She has 19 years in the hospitality industry, most of it acquired during a 15-year stint with the Ritz-Carlton Hotel Company. “She has a lot of class, grit and determination,” said Holtzman of Monahan, who has already spent some time with the staff at Bacara. One of her first duties as GM at Bacara will be to round out the management team there— specifically, fill the leadership role in the sales and marketing department, said Holtzman. This task is of high importance, as the property will look to continue to make a strong statement with bold marketing materials. It also will look to emphasize its unique physical design to attract discerning business groups and leisure travelers (a large portion of whom are from the entertainment crowd in Hollywood). “We need to make sure Bacara branding stays unique and has an edge,” said Holtzman. Until the sales position is filled, Bacara has called on Bill Gamble, who previously worked at Carefree Resorts with Holtzman, to oversee all sales and marketing efforts at Bacara. Gamble served as vp/sales at Carefree. In the meantime, Holtzman said Bacara will also work on perfecting its customer service. “We are developing a hallmark of service so when people say ‘Bacara,’ a certain level of experience comes to mind,” said Holtzman, who has been and will continue to set the tone and standards at the resort. With 60% of its business derived from groups, Bacara has been affected by the slowdown in business travel this year. The resort has not performed as well as its owners had hoped, reaching only into the upper 50’s in occupancy. Its rates have held at $395/night for a regular room to as much as $5,000/night or more for a special suite. However, Holtzman noted that this “paralysis in the group market” is expected to ease in the coming year, which he believes will be great timing, as the resort continues to build awareness and a loyal leisure market base from nearby Los Angeles. Bacara will have to compete with the newly opened St. Regis Monarch nearby, which also caters to groups and the entertainment crowd. But Holtzman said he is not worried going into the resort’s second year. “We have had great success in establishing ourselves in a difficult first year with a strong rate. As the (group) market becomes healthier, it will help our business going forward.” Bacara Resort & Spa’s occupancy is expected to climb into the mid 70s in its second year of operation, with rates holding steady. The resort, an independently owned and operated property set on two miles of beachfront land, features 311 guestrooms and 49 suites, most with a fireplace, 25,000 square feet of meeting space including a screening room, three pools and an assortment of culinary options.