Oct. 26, 2002 - Inside an office on West Paces Ferry Road, one of the country's best-known hoteliers is quietly planning a new luxury chain. 

Horst Schulze, the longtime president of the Ritz-Carlton until he resigned nearly two years ago, has assembled a group from the old days. They are working out of the offices of W.B. Johnson, who owned the Ritz-Carlton from 1983 to 1998 and grew it into a worldwide chain. 

Johnson possibly will participate in the new venture, said Schulze, who is still in the research phase and will decide by May whether to move forward. 

Schulze, who said he'd like to start in Atlanta, confirmed that he has discussed developing at the Buckhead Plaza site near his office on West Peachtree, though he also has looked at many other sites around the world. 

Schulze has not yet assembled financial partners, he said. Experts say funding for hotels is tough to find in today's economy, though Schulze's track record would help. 

Several luxury hotel chains, including Ritz-Carlton, Four Seasons, Mandarin Oriental and St. Regis, are expanding in the United States, despite the down economy. 

"I think Mr. Schulze would be well-received by any potential partners, because he has a legendary record in the industry," said Bruce Ford, vice president of sales at Lodging Econometrics in Portsmouth, N.H. 

Mark Woodworth at PKF Consulting in Atlanta said "patient capital" typically goes into high-end hotel projects, meaning investors are willing to wait longer to see the return on investment. 

Schulze "is such a proven individual in the industry, and he has demonstrated over a long time that he knows how to create a product," Woodworth said. 

Atlanta developer W.B. Johnson bought the famous Boston Ritz-Carlton and the naming rights in 1983. Johnson, who got rich as a Waffle House and Holiday Inn franchisee, expanded the Ritz name around the world. By the early 1990s, there were 25 Ritz-Carltons. 

Johnson owned some properties and managed the rest. Schulze was president of the management company. 

The company did have troubles, including lawsuits from hotel owners. A suit filed by four owners in 1995 called the company "the most arrogant and financially irresponsible hotel company in the world." 

However, Ritz-Carlton also achieved a reputation for unparalleled service. In 1992, it became the first hotel chain to win the prestigious Malcolm Baldrige National Quality Award for service. 

Johnson sold the company to Marriott. Ritz has continued to expand and is moving its headquarters from Atlanta to the Washington area, where Marriott is based. Critics say that Ritz has lost some of its cachet since Marriott took over. 

Several old colleagues, including Bob Warman, previously vice president of operations at the Ritz, are working with Schulze on the concept. 

For now, the new company is called West Paces Hotel Group, after the headquarters address. Schulze is testing a few names for the hotels, he said. 

In an interview, Schulze was vague about his vision. He said the hotels likely will be smaller than a typical luxury hotel. However, they will not be boutiques. He said he will use better efficiencies to increase profits without cutting service. 

"The fast way is to walk into the hotel and eliminate the flowers," he said. "Any idiot can do that." 

The hotels likely will be built from the ground up, because customers want a new design, he said. 

"There is the potential to write a new book on our industry," he said. "We think we did it right once. We think we can do it dramatically better." 

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