When LODGING spoke to Alex Kirkwood, founder & CEO of the eponymous Kirkwood Assortment, he was “in chaos mode in escrow closing on two offers” for his fast-growing luxurious boutique resort funding, improvement, and administration agency. At solely 38 years of age now, Kirkwood described a formidable profession path the place he moved from a profitable Hollywood movie promoting profession to constructing a boutique hospitality actual property enterprise recognized for its one-of-a-kind properties—all of which just about conforms to the marketing strategy he created as a 14-year-old.
Kirkwood mentioned he first discovered concerning the worth of actual property as an funding from his uncle in Seattle, who discouraged his earliest plans to pursue a profession within the movie {industry}. “He mentioned, ‘Should you go into the film enterprise, you’ll be able to actually crush it, but it surely’s a tricky profession, and also you don’t get to personal your work,’” Kirkwood associated.
Nonetheless, Kirkwood majored in leisure advertising and marketing at Chapman College and, after graduating in 2007, secured a place in L.A. as an assistant to a producer of impartial movies. Ultimately, his three movie {industry} roommates additionally obtained jobs in L.A., however within the meantime, Kirkwood needed to dwell on a ship in Marina Del Rey as he couldn’t afford to lease an condo alone.
twentieth Century Fox and First Purchases
Kirkwood described the elements—together with an actual property connection that led to a place at twentieth Century Fox—that inched him away from a promising profession within the movie {industry} to at least one in resort actual property, together with a interval throughout which they overlapped.
Whereas engaged on a film, he turned pleasant with producers who owned a resort in Mexico, which motivated him to start poring over a dealer pal’s listings. Oddly, it was that relationship that introduced him into contact with the pinnacle of selling at twentieth Century Fox, who employed him to create trailers and posters for the home theatrical movement image division. He remained within the coveted studio system for greater than 5 years, rising to director of inventive promoting. “It was there that I actually reduce my enamel, working 18-hour days,” he recalled.
But, at one level, whereas working as a inventive promoting director at Fox, he realized he would by no means excel at it—not the way in which his uber-talented colleague, the SVP of selling, did. “He was sensible on the job; he might produce in two hours work that took me two days,” Kirkwood mentioned.
Nevertheless, that colleague was quite much less proficient at capitalizing on alternatives in actual property, which got here so simply to Kirkwood. “That’s after I determined, if I can’t be the best possible at this, I don’t wish to do it,” he commented. Even working 18-hour days, he had purchased three properties—two trip leases together with his household, and a 3rd, The Palm Springs Resort, as a three way partnership with the household that owned the resort in Mexico. On condition that means, he figured, “That was in all probability what I’m presupposed to be doing.”
Going It Alone
So, he stop the film-industry job many would have killed for. “Everybody thought it was just a little loopy to depart the studio system within the position I’d labored so arduous to get solely to begin out at practically sq. one,” he mentioned.
His relations, who he referred to as “founder traders,” have been supportive. They’d already joined him in buying trip properties for his or her household to get pleasure from collectively and lease out again in 2012 and continued their help for the primary six motels and trip leases that launched Kirkwood Assortment in 2016.
A lot to his shock, all didn’t go properly at first. “I believed I’d simply depart Fox and the banks would roll over and finance no matter undertaking I proposed. As a substitute, I had a nightmare of a time getting my first full solo deal. I simply couldn’t put the financing collectively on the offers I wished. I had simply sufficient capital to pursue another deal. If it failed, I’d be one deal away from turning into an Uber driver.’”
Fortunately, that deal—The Hideaway in Santa Barbara—labored out, and The Kirkwood Assortment started to take off.
Boutique Focus
Kirkwood mentioned a part of the issue with getting financing when he was beginning out was possible his insistence on focusing solely on the boutique phase, in contrast to many of the flags the lenders extra readily invested in on the time he was launching his firm. That phase stays his focus: “I actually like a uniquely boutique, localized expertise and particularly love historic structure, which is why most of our property are historic.”
Because the Kirkwood Assortment has grown, they’re making a loyalty program of their very own, and their properties—all of that are in California—can share the administration assets of the corporate, he defined.
And in contrast to flagged properties which are related, there are not any restrictions on Kirkwood Assortment properties by way of their distance from each other on account of competitors issues, as a result of they don’t seem to be solely distinctive, but additionally small. Three of the Assortment’s downtown Palm Springs properties are a working example: the 18-room La Serena Villas, in-built 1933; the 17-room Del Marcos Resort, designed in 1947 by famend mid-century architect William Cody and named a Class I historic web site by the town; and the 10-room Three Fifty Resort, in-built 1950 and renovated in 2017.
The Path Forward
Kirkwood mentioned the corporate is poised to develop, with a form of hybrid construction that features:
- The Associates and Household Fund, comprised of the primary six motels and trip leases owned together with his household;
- Three different motels acquired in partnership with Somera Capital Administration, a deal he sponsored; and
- A brand new division devoted solely to Kirkwood-branded administration contracts of third party-owned properties.
Describing the corporate’s plans and expectations for progress, Kirkwood mentioned, “We simply handed $100 million in whole actual property. We’re rising within the owned and operated portfolio and the three way partnership portfolio, and we’re now seeking to tackle our first resort administration contract the place we don’t have an fairness stake. At this level, now we have a 10-property portfolio and a sturdy pipeline of offers within the works. Our employees is rising, too. We now have about 150 staff and count on that quantity to double within the coming 12 months.”
Classes From Tinseltown: The Cinematic Strategy to Resort Design and Advertising and marketing
It’s true that Alex Kirkwood, founder & CEO of the California-centric Kirkwood Assortment, walked away from his dream of constructing it in Hollywood to comprehend his dream of making distinctive properties within the resort {industry}. But, he insisted, these desires aren’t so completely different. “I went from advertising and marketing a two-hour film expertise to advertising and marketing a weekend getaway expertise—one thing obvious within the theatrical high quality of our resort advertising and marketing, together with the ‘pedigree trailer’ we created for our portfolio,” he defined.
Kirkwood supplied a notable quote from a Fox advertising and marketing government that he mentioned applies simply as a lot to the resort {industry}: “Should you attempt to make a film for everybody, you find yourself making a film for nobody.”
