LOS CABOS, MEXICO— It’s not in the U.S. (at least not yet), but it’s getting closer all the time. The “it” in this case is Kerzner International’s One&Only brand of luxury resorts, the newest example of which was opened earlier this month here as the One&Only Palmilla. Kerzner has great expectations (and is reportedly realizing those expectations) for this particular line of super-deluxe resort hotels, initially launched in Europe just over a year ago. Indeed, one of the company’s existing locations— the 106-room One&Only Ocean Club in The Bahamas, re-opened following a $100-million investment/renovation— is now generating “the highest RevPAR in the industry at this level,” with an ADR around the $750 level resulting in RevPAR in the $600 range, according to Kerzner Executive VP Howard Karawan. The new 172-room, multi-building Palmilla complex played into Kerzner’s hands via a buy-in of some $37.5 million, followed up by a very healthy capital infusion for the necessary upgrading of what was originally The Palmilla Resort. The result? “We now have a 50% equity position in— and hold the management contract on— a truly trophy-level property, positioned on 200 acres of what is probably the finest piece of real estate in all of Los Cabos,” Karawan contended. Laid out to cater specifically to high-end travelers, the new Palmilla resort hotel includes a 27-hole signature Jack Nicklaus golf course among its wide range of eminently upscale guest amenities. As Karawan pointed out: “We’re all about quality, not quantity. We’re very selective in everything we do, and refuse to sacrifice quality standards in any way.” Of course, while quantity is not labeled as being a paramount concern for the Kerzner organization, the fact is the Paradise Island, Bahamas-based company is nonetheless very serious about building the size of the overall One&Only portfolio. According to Karawan, there are currently two such sites operating in Mauritius, one in the Maldives, and another (in which Kerzner has no ownership stake) in Dubai. Looking down the road, Karawan noted a second site is currently being developed in the Maldives, the One&Only Saratoga is going up in Havana, Cuba, and yet another location is taking shape in Capetown, South Africa (site of some of Kerzner’s earlier success via its role in the Sun City gaming resort). Finally, Karawan offered U.S. locations are very much in the picture for the company going forward, as possible One&Only properties are now being contemplated for Hawaii as well as for various ski destinations within this country, with other Caribbean sites similarly in the planning mix at this time. “Ultimately,” the Kerzner executive vp maintained, “our goal is to get up to about 20 One&Only hotels over the course of the next four years.”
Ribbon-cutting at the official opening of the One&Only/Palmilla earlier this month.