Editors’ Note

A 30-year veteran of the hospitality industry, David Burke joined The Breakers in 1991 after 10 years with Hyatt Hotels and Resorts. He has served as Chairman of the Palm Beach County Convention and Visitors Bureau and is an active member of the Palm Beach County Tourist Development Council. Burke is a graduate of Florida International University with a bachelor of science degree in hospitality management.

Property Brief

Set amid 140 acres of oceanfront property on the island of Palm Beach, Florida, The Breakers is a privately held AAA five-diamond award winning resort destination. Originally founded in 1896 by magnate Henry M. Flagler, it was rebuilt in 1926, after two fires destroyed the original building. The multifaceted, Italian Renaissance-style property features 560 deluxe guest rooms including 57 suites; two 18-hole championship golf courses; a 20,000-square-foot luxury spa; a Mediterranean-style beach club, with 30 premium beach bungalows and cabanas for day use; two fitness centers; four swimming pools; 10 tennis courts; a family entertainment center; eight outstanding restaurants; and an array of onsite boutiques, all owned and managed by The Breakers.

The travel industry has achieved strong growth over the past year. Have you been happy with the growth of The Breakers, and what is your outlook for the property in 2008?

Demand for The Breakers has been excellent, as evidenced by a strong rate of growth in both leisure and group segments. This past fiscal year, we achieved new benchmarks in revenue and profitability, and we expect to do the same in 2008. We attribute this to the ongoing capital investment that our owners make in the property, averaging $25 million per year, as well as to our commitment to ongoing improvement and to delivering memorable, highly personalized experiences for our guests. The continuous elevation of the overall resort experience generates greater loyalty and more frequent visits by our customers.

What are some of the renovations taking place at the property that guests can expect in the coming years?

Last summer, we began the first phase of a $40-million guest room renovation project, which will focus on the interior revitalization and spatial redesign of our accommodations over the next three summers. The decor will be renewed as part of a larger guest room experience. Our spa operates as one of the most profitable, per square foot, in the country, and it has recently undergone a major refurbishment. We have just relaunched our signature restaurant as two distinctive dining experiences, which now offer top-notch French cuisine in two different styles and levels of formality. The Breakers Golf Academy will expand with learning centers at the Ocean Course and The Breakers Rees Jones Course, under the direction of our lead professional, John Webster. These are just a few of the improvements funded by our annual $25-million capital improvement budget, an extraordinary investment for an independent property.

In such a competitive market, how challenging is it to differentiate and show what makes a property unique?

Certainly this is a challenge for every hotel. However, The Breakers is truly a one-of-a-kind property that could not be replicated today. This platform of differentiation started more than a century ago with the resort’s founder, Henry M. Flagler. Today, his descendants uphold this legacy of distinction, with a resort that is uncommon and exceptional, thanks to its unique combination of attributes – its architectural design, its scope of quality amenities, its prized oceanfront location, and, in particular, our organizational culture. Employee fulfillment is our highest priority. It drives an amazing retention level and tenure among our 2,300 loyal staff members. Employees are the guarantors of success with our customers, and they help us to maintain the distinction and power of our brand, and the longevity of our competitive advantage. In turn, our customers’ elevated expectations inspire us to keep the bar raised and to never rest on our laurels.

Many in the hotel industry mention the challenges inherent in running a successful hotel restaurant, especially in locations that offer many terrific stand-alone restaurants for travelers. What is your approach to food and beverage at The Breakers?

Food and beverage is one of our most successful divisions, and our entrepreneurial approach empowers us to marry quality with profitability in our operations. We have created eight distinct restaurant concepts among our array of quality dining options, inclining guests to stay on property and inspiring local patronage. The span of choices range from L’Escalier, our AAA five-diamond restaurant, featuring modern French cuisine, and its adjacent Brasserie L’Escalier, offering traditional bistro-style fare, to The Italian Restaurant, which features family-friendly dining, adjacent to our family entertainment center.

Guests expect luxury hotels today to offer high-quality spa and fitness facilities. How much of a focus has this been for you?

Our guests look to The Breakers as a way to rejuvenate after the demands of a stressful routine. Our spa is a necessity for our leisure guests who are looking for personal renewal, and for groups who escape their offices to convene and achieve organizational renewal. Recognized as one of the leading spas in North America, this 20,000-square-foot facility is designed to have a relaxed atmosphere of residential elegance. We provide the highest-quality services and continually update our spa menu with new treatments that focus on personalization. Many treatments incorporate sea and citrus ingredients indigenous to Florida, but we also have a successful partnership with Guerlain, and we utilize their highly effective skin care products and techniques in our exclusive Guerlain facials.

Are your meeting facilities primarily focused on high-level, intimate meetings, or do you cater to larger corporate events as well?

We are fortunate that our diverse array of function space and services cater to both premium-level meetings and corporate events. There is often a seasonal basis for hosting such programs, with the busy winter season conducive to high-level conferences for top-tier companies, and larger scale events held at other times of the year.

How do you balance the demand for high-tech gadgets with the need to maintain the personal touch for which The Breakers is known?

Technology is important, but we never forget that we are in the business of hospitality. There’s no substitute for great people with great attitudes and capabilities.