Walter Banks

Walter Banks grew up in the hotel business. When he was about two years old, his father bought and began managing the historic Cavalier Hotel in Virginia Beach, Virginia. Then in 1960, when Walter was 17, his dad sold that property and purchased Fort Lauderdale's Lago Mar Resort and Club.

The younger Banks worked at the Florida property—everything from helping out at the beach to manning the front desk—during summer vacations from his studies at the University of Miami, where he earned a degree in finance. But he intended to become a lawyer, not to follow in his father's footsteps.

"Then, in my senior year in college, Hurricane Cleo hit Fort Lauderdale," Banks told us. "That's when I made my decision to go into the hotel business. We'd almost lost the company, and I realized that it meant a lot to me. My parents had done a lot for me and given me a great education in the hotel business, and I thought I'd take advantage of it.

"It was nice to be able to work with a hotel man who had been successful and had all that experience," he added. "I learned a lot through osmosis, a lot around the dining room table. It would have been a shame to waste that part of my education, which was as important as the degree [from the university]."

Apparently so, because Lago Mar- where Banks became president in 1972-has flourished under his control. Now one of Florida's premier resorts, it has attracted guests from all over the world, as well as the attention of the Ritz-Carlton chain. When we spoke with Banks, he was negotiating a deal to put Lago Mar under the Ritz-Carlton marquee.

Banks has prospered along with the resort. He has developed a country club, condominiums, and office buildings and served on the boards of numerous businesses, associations, and community organizations. That has meant plenty of travel, which is why he purchased a Beechcraft King Air B200 two years ago—and also why he recently replaced that aircraft with a 1985 Citation S/II.

Why have you opted for full ownership of an airplane rather than, say, charter or a fractional share?

Because we're flying so much—probably 150 hours a year. And we can charter the plane out 75 to 100 hours a year. That keeps the pilot proficient and brings in some income to offset our costs.

Where are you flying?

I'm on the board of the Miami branch of the Federal Reserve of Atlanta, so I have meetings once a month in Miami. And twice a year I have to go to Atlanta. I'm also on the board of Visit Florida, the marketing arm of the state tourism commission. So I fly to Tallahassee and other areas of Florida where we have meetings, which are on Amelia Island. [After those meetings,] I'll come back to Fort Lauderdale or fly up to Virginia Beach, where we're building a house. I'm up there primarily for fun. We spend probably three or four nights a month there.

Do you fly privately for Lago Mar business as well?

I went to Washington to meet with Ritz-Carlton [to negotiate its deal to manage Lago Mar] and to look at the Ritz hotels there. Probably next month, I'll be in the Cayman Islands, looking at the Ritz there. I'm in the Southern Hotel Association and the resort committee of the American Hotel Association, and we have meetings all around the country, and I fly for those.

So you need lots of mobility.

To give you a for instance, in December, we flew to Destin [Florida] for a Visit Florida meeting, and I flew from Destin to Jacksonville, had a meeting that afternoon for the insurance company, had a meeting the next day till 3, flew to Virginia Beach and had dinner with some friends there and then flew back to Fort Lauderdale for a luncheon the next day. I couldn't have done all this without a private plane.

I understand you've got a management company handling the charter, the maintenance, and so on.

Correct—Banyan Air Service. But I have the same pilot every time. I know him well now and he's a great pilot. When we go to Virginia Beach for three or four nights, the plane stays there and he stays there.

You asked why I don't use charter. Well, when I fly for business, I usually spend at least one night. The pilot enjoys [staying over] so it's a nice situation for him and for me. And the plane doesn't get beat up—it doesn't deadhead for me.

How did you like the King Air?

It was great. It's got plenty of room. It's like flying in a car with the executive seating. You don't feel cooped up like you do on a commercial plane.

So why did you trade in the King Air for the Citation?

It came along and it was an opportunity. The King Air is really a better plane in Florida, but I do go up to Virginia on a continuous basis and the Citation cuts about 45 minutes off my trip, plus it can fly higher in case of weather conditions. Its 400-knot speed is what I like best.

How did you hear about it?

From Mike O'Keeffe, who is senior vice president of aircraft sales for Banyan Air. I bought my first plane from Mike and I have a lot of confidence in him and in Banyan. And they told me the Citation had been owned by someone who owns 25 McDonald's, and I said, "I think I know who owns that plane."

And did you?

Yes. It turned out to be owned by my fraternity brother from college. So I knew the plane was well taken care of.

Do you expect to keep it for the foreseeable future?

I envision having it for two or three years and then I would like to move to a [Beechcraft] Premier. That's the plane I like the best. But it's still a couple of years away for me, so I thouhtt I'd become acclimated to a jet that had the speed and an older jet that price-wise was considerably less than the Premier.

Meanwhile, you're negotiating the Ritz-Carlton deal.

We're in discussions about converting Lago Mar to a Ritz-Carlton which would involve a substantial amount of construction; it isn't just changing the name. We'd go fto 323 units from 204. It would require rebuilding about two-thirds of the property.

Why are you pursuing the deal?

They came to us; we didn't go to them. But it'd be a great opportunity for us and our family and a great opportunity for Fort Lauderdale.

Would Ritz-Carlton buy the resort?

No. We would continue to own the property, and they would manage it. We'd still be involved, but not on a day-to-day basis.

If the deal goes through, what would you do? Retire?

It would definitely free up some time. If it happens, I'm going to fly more for pleasure, particularly to the West Coast.

How has owning an airplane changed your life?

It's allowed me to participate in community and business activities that I wouldn't be able to participate in without it. Secondly, it's allowed me to have this home in Vitginia and get to it between business trips. You know, flying commercially I could leave home at 8 in the morning and be there for lunch.

I'd really emphasize quality of life as a big factor to your readers. My wife, who doesn't especially like to fly, would sell the house before she'd sell the plane.

Fast Facts

Name: Walter Banks

Age: 64

Home: Fort Lauderdale

Occupation: Resort owner

Aircraft: 1985 Citation S/II

Personal: Wife Debbie. One son and one daughter; both now co-own the hotel with their father