State of Independence
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The moment I first laid eyes on the Greenbrier Resort in 2004, I blurted out what I thought was an incredibly obvious observation: "This," I said about the 6,500-acre, 720-room hideaway in rural West Virginia, "will make a great Marriott one day."
My guide, who worked for an outside PR firm hired to revive the resort's flagging reputation, was aghast. She gamely protested the accuracy of my first impression and insisted the Greenbrier was above the unabashedly commercial, cookie-cutter nature of chain hostelries. But as I wandered around still-icy golf courses, inspected florid guestrooms and outdated public areas, and noted archaic house rules (the only dining room required a jacket and tie), I was convinced that the Greenbrier would never survive as an independent.
Well, the 230-year-old lodging icon has succumbed. The owner, railroad company CSX Corp., put the Greenbrier into Chapter XI bankruptcy in late March, claiming $90 million in losses during the last six years. And CSX promptly called in—you guessed it—Marriott. CSX is so desperate to unload the hotel that it will provide Marriott with as much as $50 million to operate the Greenbrier during the first two years. Marriott will then buy the resort within seven years for between $60 million and $110 million. Pending bankruptcy court approval, the deal could close by summer.
Now, no one is aghast at the prospect of a chain running the Greenbrier. The unions seem amenable to Marriott's arrival. West Virginia governor Joe Manchin publicly applauded the deal. Newspapers statewide have cast Marriott's arrival as a "rescue." And locals in hardscrabble Greenbrier County support anything that will save the resort's approximately 1,300 jobs.
Like all luxury hotels that have hit the economic and emotional skids, the Greenbrier's tale is unique: CSX has been a distracted and ham-fisted owner, battling both the hotel's unions and the resort's former president, who sued for $50 million. The sprawling resort is physically isolated and expensive to operate. (CSX recently spent $50 million on improvements in a misguided attempt to regain the fifth Mobil Guide star it lost in 2000.) And despite the loyalty of generations of repeat visitors and fanatic golfers, the Greenbrier was disproportionately dependent on corporate meetings, a travel category that has been devastated by the weak economy and the "AIG Effect."
But the Greenbrier's sale to Marriott also raises a more universal question: Can any luxury hotel or resort thrive—or even survive—as an independent property? In a world where a handful of global hotel chains—Hilton, Marriott, Starwood, Hyatt, Accor of France, and InterContinental of Britain—dominate the lodging market, can a single property, no matter how famous, stand alone?
At least on the surface, the answer is no. About half of the properties on the Condé Nast Traveler Gold List and half of those that earn the prestigious five-star rating from the Mobil Guide are part of chains now, albeit luxury and ultra-deluxe operators such as Four Seasons or Fairmont of Canada; Mandarin Oriental and Peninsula of Hong Kong; Aman Resorts of Singapore; and Taj of India. The Blackstone Group, which owns many of the world's best-known luxury independents as well as Hilton Hotels, is building a deluxe brand too. It is aligning its independents like the Boca Raton Resort in Florida and the Boulders in Arizona with the Waldorf Astoria Collection, which was created by Hilton using the cachet of its eponymous New York hotel.






