Luxury resort real estate has become a popular sector for investment, especially among high net worth individuals and institutional investors. The exclusivity, amenities, and high profit potential make luxury resorts an attractive alternative investment. In 2020, despite the challenges of the COVID-19 pandemic, several resort investment firms delivered standout projects that demonstrated resilience and ability to cater to the evolving preferences of affluent travelers. Here is a look at some of the top luxury resort investment companies worldwide based on the performance, scale, and innovation of their projects in 2020.
Blackstone demonstrated strength across multiple luxury resort markets
The Blackstone Group has consolidated its position as the top resort investment firm through its world-class hospitality portfolio. In 2020, Blackstone acquired several trophy assets including the Cosmopolitan Resort & Casino in Las Vegas for $5.65 billion in what was termed the largest single-asset sale in Las Vegas history. Blackstone also purchased the Bellagio Resort & Casino, marking the firm’s entry into the Las Vegas strip. Globally, Blackstone expanded its Spanish resort collection by acquiring hotel operator Hotel Investment Partners, operator of five luxury hotels in Spain. The firm also demonstrated resilience in Hawaii through its extensive holdings in luxury destinations like the Four Seasons Resort Hualalai and Grand Wailea Resort.
Driftwood Capital Partners focuses on all-inclusive model
Miami-based Driftwood Capital Partners has carved a niche for itself in luxury all-inclusive resorts across Mexico, the Caribbean, and Central America. In 2020, Driftwood acquired the 202-room Ocean Coral & Turquesa resort in Riviera Maya, Mexico for $90 million. The firm also purchased a majority stake in Dominican Republic’s historic Casa de Campo Resort & Villas. Driftwood has over $2 billion in hospitality assets under management. Its focus on all-inclusive resorts with built-in amenities, activities, and dining has proved resilient during the pandemic.
Accor continued expansion of luxury brands
France’s Accor, one of the world’s largest hotel operators, pressed forward with expanding its luxury resort brands like Raffles, Fairmont and Banyan Tree in 2020. Accor opened new Raffles properties in the Maldives, Dubai and Bahrain even during the pandemic. The company also debuted the Raffles Boston Back Bay Hotel & Residences, its first Raffles branded property in North America. Accor aims to grow its luxury resort portfolio to over 300 properties globally within the next few years.
Hyatt’s focus on wellbeing and sustainability
Hyatt has differentiated itself through a focus on wellness and sustainability at its luxury resorts and brands like Andaz, Alila, Miraval, and Park Hyatt. In 2020, Hyatt debuted the 111-room Miraval Berkshires Resort & Spa in New York, the brand’s first wellbeing resort outside its flagship Arizona property. Hyatt also aims to eliminate single-use plastic across its resorts by 2022 and has comprehensive goals on carbon emissions, water use, and waste management. The company’s focus helps it resonate with eco-conscious luxury travelers.
Royal Caribbean’s innovations in cruise tourism
Though cruise tourism was battered in 2020, Royal Caribbean Cruises made headlines for its innovations, including unveiling plans for its new Icon class that will be powered by liquefied natural gas and use fuel cell technology. The company also revealed designs of its first Caribbean resort, Royal Beach Club Antigua. The $80 million luxury resort aims to integrate the cruise and resort experiences. Royal Caribbean’s investments position it well for the post-pandemic return of cruising and resort travel.
The top luxury resort investors in 2020 demonstrated their strengths across hotel, cruise, gaming, and all-inclusive models. Being able to cater to evolving consumer preferences with wellness, sustainability, and digitalization will help determine the future leaders in luxury resort real estate.