What Comes Around Goes Around: Today's U.S. Destination Resort Trends Through the Lens of The Biltmore Estate Asheville
Jeremy R. Gilston
May 9, 2024
I recently took a spring break vacation, a welcome escape from the daily routine. Proximity, ease, and access to nature were among the top attributes that drew me and my partner to Asheville. Although I could leave my screens and daily responsibilities behind, I could not turn off my hotel brain, which is the impetus for this article.
In my role with Woodworth Core Group (formerly R.M. Woodworth & Associates), I have had the great fortune of advising and supporting key hotel stakeholders in their development, investment, and asset management decisions. In recent years, I have been exposed to more and more luxury U.S. resort developments. And so, as I learned about The Biltmore Estate and the Gilded Age Vanderbilt lifestyle on my vacation, I was struck by how it is echoed in today’s U.S. resort trends. Lavish accommodations, pristine nature, and culinary arts, this article delves into how contemporary resorts reflect the legacy of the Biltmore and its influence on American leisure.
Design & Amenities: Pure Opulence
In the lush hills of Asheville, North Carolina, stands a testament to American opulence and grandeur: the Biltmore Estate. Commissioned by George Washington Vanderbilt II as a country home in the late 19th century, renowned architect Richard Morris Hunt and Landscape Architect Frederck Law Olmstead led the project. This sprawling mansion, which cost $5 million to build (equivalent to $185 million today) encapsulated the epitome of luxury living during the Gilded Age when it was completed in 1895. It originally boasted 125,000 acres of contiguous land, a 175,000 square foot 250-room French Renaissance château, 75-acres of gardens, a six-acre lake, a dairy barn, horse stables, a mixed-use village, and employee housing. The château, which was privately located 3 miles from the main entrance gate, housed luxuries not common in homes at that time. These included two elevators, servant call buttons in every room, fine art, a 12,000-book library collection, sprawling gardens, a billiards room, a two-lane bowling alley, an indoor gym, a 70,000-gallon heated indoor swimming pool, and more.
Biltmore Estate Indoor Pool – Asheville, NC
Just as the Vanderbilts spared no expense in creating a lavish retreat for themselves and their guests, today's luxury resorts offer bespoke experiences tailored to the desires of discerning travelers. While some hotel luxuries have faded over time (mini-bars, room service, ice machines, floral comforters, pillow shams, in-room whirlpools) those that have remained popular harken back to the Biltmore’s offerings, including culinary arts, outdoor recreation (fishing, trophy hunting, skeet shooting, nature walks), indoor recreation (bowling, swimming, fitness), fine art, contemporary design, serene nature, and wellness. Such luxuries are in high demand and provide resort guests with the needed escape from daily life they so desire.
Drawing Parallels: Auberge Resorts Collection, a small family company headquartered in Mill Valley, California and Bethesda, Maryland was founded in 1981 and has become synonymous with ultra-luxury. With a tagline of “one-of-a-kind experiences in extraordinary destinations,” the collection has grown to 21 U.S. properties as well as four in Mexico, one in Costa Rica, and two in Europe. The company’s website boasts another five properties underway, four of which are in the U.S. In 2023, Condé Nast Traveler recognized all 22 eligible Auberge properties, with seven of them ranking No. 1 in their respective destination categories. One of which, The Vanderbilt in Newport Rhode Island, is a historic mansion formerly owned by Alfred Gwynne Vanderbilt. What makes this branded collection so unique is its commitment to luxury through design, service, and amenities. The Primland Resort, for example, in Meadows of Dan Virginia is situated on 12,000 acres of private land abutting the Blue Ridge Mountains with luxuries such as twice-daily housekeeping, concierge, BVLGARI bath products, an 18-hole Donald Steel designed golf course, fly fishing, horse riding, sporting clays, a full-service spa, three restaurants, a wine cellar, and much more.
Primland Auberge – Meadows of Dan, VA
Nature & Wellness: Location, Location, Location
George’s mother was sick with respiratory illness, and her doctor advised her to seek treatment in Asheville. This was common practice back then as it was thought that Asheville’s altitude, atmosphere, and climate were ideal for curing Tuberculosis (climactic theory). So, when George first visited his mother in Asheville in 1888, he was captivated by the area’s natural beauty and decided he wanted to build a home there. He assembled land over the next year and began building his country estate. The land was so special, that upon George’s death in 1914, his wife, Edith, sold 86,000 acres of the estate to the U.S. government for use as public lands, now the country’s most visited National Forest, Pisgah National Forest, with over 10 million visitors each year.
Pisgah National Forest – Asheville, NC
Whether nestled in forests, abutting mountains, or overlooking coastlines, today’s U.S. resorts offer nature as a form of medicine to boost mental health. Resort guests cherish an escape from their fast-paced technology-filled lives, seeking to reconnect with the natural world and rejuvenate their minds, bodies, and spirits. From immersive outdoor activities to holistic spa treatments, present-day nature-centric resorts offer robust wellness programming that encompasses physical, mental, and emotional well-being.
Drawing Parallels: Awarded #1 Resort in the Northeast and Mid-Atlantic Region in 2023 by Condé Nast Traveler, Mohonk Mountain House is located on a private glacial lake with views of the Catskill Mountains. Like The Biltmore Estate, Mohonk Mountain House established a land trust and transferred 5,300 acres of land, Mohonk Preserve, which was designated as a National Historic Landmark in 1986. Continuing to capitalize on its unique natural setting, Mohonk Mountain House added a spa wing in 2005 with 16 treatment rooms, verandas, a solarium, an outdoor heated mineral pool, an indoor pool, a fitness center, a steam room, and a dry sauna. It has since expanded its wellness programming, with a full-time Naturalist, and offers experiences including forest bathing, foraging, bird watching, meditation, yoga, and more.
Mohonk Mountain House – New Paltz, NY
Food & Beverage: Luxurious Culinary Experiences
Part of George Vanderbilt’s vision was that the Biltmore Estate would be self-sustaining, a tall order for a place whose food was the centerpiece of an extravagant Gilded Age lifestyle. Best-in-class agriculture practices, food preservation techniques, and storage technology supported this vision for the estate, allowing the Vanderbilts to host lavish banquets and serve sumptuous feasts as the focal point of social gatherings. The dining experience was elevated to an art form, with meticulous attention to detail in both presentation and taste. Whether dining in the opulent banquet hall or enjoying an intimate dinner in the estate's elegant dining rooms, guests were taken on a gastronomic journey that reflected the sophistication and hospitality for which the Vanderbilt family was renowned. Produce, livestock, and dairy were all farmed on the property and were at the center of creations prepared by the culinary team. The Estate’s kitchen boasted cutting-edge technology of the time to ensure smooth dining operations. Such technology included two dumbwaiters (one electric, one manual), cold refrigerators to keep dairy, an electric warming oven, a rotisserie kitchen, and more. The kitchen was brimming with staff including a head chef, cooks, butlers, pastry chefs, and kitchen maids.
Biltmore Estate Dairy Barn – Asheville, NC
In the realm of luxury resorts today, culinary experiences have evolved into a central pillar of guest satisfaction and indulgence. Culinary offerings are no longer merely a necessity but a defining feature that sets high-end resorts apart. Drawing inspiration from diverse culinary traditions and sourcing premium ingredients locally and globally, luxury resorts curate menus that elevate the dining experience to an art form. Renowned chefs, often with Michelin-star pedigrees, lead the kitchens, infusing creativity and innovation into every dish. From farm-to-table dining experiences that celebrate sustainability to immersive gourmet dining showcasing exotic flavors and techniques, luxury resorts spare no effort in satisfying the discerning palates of their guests. Dining venues, ranging from elegant fine dining restaurants to intimate chef's tables and alfresco eateries with panoramic views, are tailored to suit every preference and occasion. As such, culinary excellence has emerged as a hallmark of luxury hospitality, enhancing the overall guest experience and reaffirming that food is indeed the way to the heart.
Drawing Parallels: Awarded the #1 Hotel in the South in 2023 by Condé Nast Traveler’s Reader’s Choice Awards, Blackberry Farms Resort opened in 1990 with six rooms on a pastoral 4,200-acre estate in the Great Smoky Mountains in Walland, Tennessee. Culinary experiences and farm-to-table dining are at the core of the now all-inclusive resort with 68 guest accommodations. The owner’s son applied his experiences at high-end wineries and restaurants in Northern California, including the French Laundry, towards The Barn at Blackberry Farm, the resort’s fine-dining restaurant, and the more casual Dogwood restaurant in the main house. Both restaurants helped the resort achieve a Relais and Châteaux Gormands designation. The Barn is also a James Beard award winner. The guestrooms are a short seven miles from a working farm, where much of the resort’s produce, herbs, and cheese come from. The resort has earned dozens of additional food and beverage accolades in recent years, celebrating its cheese, wine, and beer. Guests can interact with food at this resort beyond a standard meal as Blackberry Farms offers a range of culinary programing, including wine and spirit tastings, culinary demonstrations, and farm tours.
Blackberry Farm Resort – Walland, TN
Economics: The Financial Reward
While the above speaks to unparalleled guest experiences, I would be remiss to not discuss the financial benefits to the owners who have been able to create and sustain these properties. With a strategic location, meticulous attention to detail in design and amenities, and exceptional service, a luxury resort can command premium prices for accommodations, dining, and exclusive experiences. Of the 5.7 million hotel rooms in the United States according to CoStar, the luxury segment represents 371,000, approximating 6.5 percent of the supply. Additionally, while a little more than 150,000 new hotel rooms are under construction today, the luxury segment represents 8,600 rooms or approximately 5.7 percent of the total pipeline.
Using CBRE’s financial statement tool, Benchmarker, I have pulled together a grouping of seven luxury destination resorts that echo the Vanderbilt’s Gilded Age lifestyle and compared their 2023 and 2019 performance. This set, defined below, reflects properties driven by the attributes profiled in this article, but excludes beach resorts given their strong seasonality patterns.
CBRE Benchmarker Grouping
While the U.S. hotel industry ended 2023 with its highest average daily rate (ADR) on record of $155, and the luxury segment softened slightly from its 2022 peak of $428 to $424 in 2023 according to Smith Travel Research. The selected group noted above achieved a whopping $1,091 ADR in 2023. This demonstrates a growth of $338 compared to the pre-COVID peak, achieving a compound annual growth rate (CAGR) of 9.7 percent.
While this group’s ADR is above $1,000, revenues don’t stop there. Given the attention placed on culinary experiences as well as spa and wellness, these properties achieved another $381 in revenue per occupied room (POR) in Food & Beverage Revenue and $331 POR in Other Operated Departments, which is largely comprised of Spa Revenue. Total revenue for this set in 2023 was close to $2,000 POR with nearly half generated by other operated departments. This 2023 total revenue reflects a 34 percent increase over 2019. For context, CBRE’s All U.S. Hotel report reflects total operating revenues of $309 POR in 2023, a 20 percent increase over $257 POR in 2019.
Recent revenue growth can be partially attributed to significant increases in labor costs, a trend observed across the United States since 2019. Given that service and nature are key parts of what makes these destination resort properties so successful, the operating expenses are uniquely robust to account for an atypically large number of employees and sprawling grounds. As a result, departmental expenses for this group of resorts amounted to $795 POR (41.0 percent of total revenues) in 2023, up from $529 POR (41.9 percent of revenue) in 2019. Again, for context, CBRE’s All U.S. Hotel report departmental expenses reflect $114 POR (36.9 percent of total revenues) in 2023, up from $94 POR (36.7 percent of total revenues) in 2019.
Most impressive about this set of hotels is their high gross operating profit (GOP) margin, which has grown considerably since 2019; pre-COVID, these properties achieved an astounding $110,000 of GOP per hotel room. Overcoming cost and inflation challenges in the last four years, their GOP per hotel room increased to $160,000 in 2023. This defies CBRE’s All U.S. Hotel average trend, which declined from $24,000 of GOP per hotel room in 2019 to $20,000 PAR in 2023. Stated differently, this sampling of resorts increased profits from 4.6x the average U.S. Hotel’s in 2019 to 8x in 2023, demonstrating their recent financial success.
Conclusion: What Comes Around Goes Around
As we reflect on the parallels between today's U.S. resort trends and the Vanderbilt lifestyle exemplified by the Biltmore Estate, it becomes evident that while the times may change, certain principles endure. So much so, that the Biltmore Estate has evolved to add more amenities and offerings since opening to the public, now taking inspiration from U.S. resorts, coming full circle.
George’s daughter, Cornelia, decided to open the Biltmore House to the public in 1930 to help generate income and preserve the estate. Since then, new attractions have been added as The Biltmore’s popularity as a tourist attraction continues to grow; the original dairy barn was converted to a winery and opened in 1985; the four-star Inn on Biltmore Estate opened in 2001 with 210 hotel rooms, fine dining, and an outdoor pool; the first of several cottages for overnight guests opened in 2005, the Antler Hill Village with exhibition space, shopping, and dining opened in 2010, and the 3.5-star Village Hotel on Biltmore Estate opened in 2015 with 209 rooms, a bistro, and an outdoor swimming pool adjacent to the winery and Antler Village.
Today's resorts emphasize immersive experiences that go beyond mere lodging. Much like the Biltmore offered its guests a glimpse into the aristocratic lifestyle of the Vanderbilts, modern resorts curate experiences that transport visitors to different realms. From a commitment to excellence and innovation to a reverence for nature and culinary arts, the essence of the Vanderbilt legacy continues to shape the landscape of leisure and hospitality in America. As travelers seek authentic experiences to unwind and escape their daily responsibilities, the timeless allure of the Biltmore serves as a beacon, reminding us of the enduring power of beauty, hospitality, and the pursuit of the extraordinary.
Jeremy R. Gilston (right) & Partner (left) – Asheville, NC