Hotel del Coronado Case Study

A heritage preserved. A future more prosperous.

Sometimes the best path forward requires looking back.

This storied hotel has been a favorite of dignitaries, celebrities, royalty and beach-loving vacationers for nearly 130 years. With such a rich history, not only would it have been a shame to leave the iconic Hotel del Coronado’s heritage behind, it would’ve been foolish.

But the challenge facing the KSL Resorts team in the early 2000s wasn’t just restoring the property’s historic charm, it was doing so while also bringing the aging, underperforming asset into the modern era, both operationally and financially.

Our approach? Rather than apply some boilerplate solution, we studied the details and developed a customized strategy to transform the The Del into the finest version of itself.

The cornerstone of the renovation was the luxurious Beach Village at The Del—35 exclusive cottage and villa units (78 keys) with an assortment of upgrades for exceptionally discerning travelers. KSL Resorts designed, entitled and managed the entire process from the complex and challenging California Coastal Commission approvals through construction and its eventual sale.

 

“With such a rich history, not only would it have been a shame to leave the iconic Hotel del Coronado’s heritage behind, it would’ve been foolish.”

But improvements didn’t stop there.

In order to celebrate its truly independent nature and spirit, we creatively re-envisioned and re-invented spaces all across The Del’s grounds—renovating rooms, meeting spaces and restaurants. We enhanced The Del’s status as a legendary place to gather, while improving service in every aspect of the guest experience.

We also created all kinds of new attractions and welcoming features, including high-end retail, a beautifully inviting wine bar, plus the famed ice Skating by the Sea and s’mores on the beach experiences.

Results matched The Del’s grand nature.

  • Substantial profit from redevelopment
  • Significant incremental EBITDA annually from the rental program
  • 40% increase in RevPOR, plus 90% growth for the membership program, generating increased incremental EBITDA each year

So, while economic conditions fluctuated, and owners came and went, performance of The Del during KSL Resorts management remained strong year after year for a decade and a half. And now, this historic property is positioned to continue its success well into the future.