With the soaring popularity of luxury and experiential travel, resort investment has become a highly lucrative sector. As demand rises for exclusive boutique hotels and luxury resorts in premier destinations worldwide, a select group of investment firms have emerged as leaders in this burgeoning sphere. By leveraging expertise in hospitality, real estate and finance, these companies are delivering outstanding returns through acquisition, development and management of the world’s finest resort properties. From tropical hideaways to ski chalets and urban retreats, their portfolios showcase the pinnacle of luxury accommodation. For investors seeking diversification and robust yields, these resort investment specialists provide unparalleled access to a thriving global hospitality market.
Marriott International’s diverse portfolio of resort hotels generates strong returns
As the world’s largest hotel company, Marriott International (NASDAQ: MAR) operates an extensive collection of premium resorts spanning 25 brands. Their roster includes renowned names like Ritz-Carlton, St. Regis, W Hotels, Westin, Sheraton, and Autograph Collection. In 2021, Marriott derived over 20% of rooms revenue from resorts. Their global development pipeline contains over 190 resort projects. With deep operational expertise and powerful loyalty programs, Marriott generates significant value from both ownership and management of resort assets. Their resort revenues have recovered strongly from pandemic lows, underlining the resilience and growth potential of luxury hospitality.
Blackstone capitalizes on high barriers to entry in resort markets
The Blackstone Group (NYSE: BX), one of the world’s leading private equity firms, has deployed billions acquiring trophy resorts and luxury hotel brands. Their holdings include major stakes in top operators like Hilton, Extended Stay America, La Quinta, and Spain’s Hotel Investment Partners. Blackstone targets assets with high barriers to entry, where capital intensity and branding deter new competition. In 2021, they acquired a controlling interest in The Cosmopolitan luxury resort and casino in Las Vegas for $5.7 billion. Blackstone’s Real Estate segment, which contains their hospitality investments, delivered record profits in 2022, proving the enduring value of marquee resort properties.
Private equity giant KSL Capital Partners focuses exclusively on leisure travel
KSL Capital Partners is a private equity firm dedicated solely to travel and leisure enterprises. Since 2005, they have invested over $15 billion in premier hotel, resort, spa, athletic club, entertainment and travel services companies. Their current portfolio contains renowned resort brands like Outrigger Hotels & Resorts, Squaw Valley, and The Grand America Hotel. KSL also owns businesses providing essential services to the resort industry, including affinity credit cards and travel technology platforms. With in-depth knowledge of hospitality operations, development and guest engagement, KSL generates outstanding returns from both equity investments and hands-on asset management.
Driftwood Capital acquires resorts and converts them to more profitable brands
Driftwood Capital is a real estate investment firm specializing in the hospitality sector. Their strategy focuses on acquiring underperforming resort assets and repositioning them under leading hotel brands to unlock value. Since 2011, they have invested $2 billion in over 90 properties. Driftwood has executed numerous successful resort deals, including converting a former Hyatt Regency to a W Hotel in Mexico’s Riviera Maya. Their deep industry relationships with top operators like Hilton and Marriott enable them to implement value-added brand conversions that generate higher revenues from existing properties.
DiamondRock Hospitality owns and operates premium resorts across U.S. leisure markets
DiamondRock Hospitality (NYSE: DRH) is a publicly traded lodging REIT that owns 31 premium hotels and resorts in North America. Their high-quality portfolio is concentrated in popular U.S. leisure destinations and commands leading market share. DiamondRock owns iconic properties like The Lodge at Sonoma, an Autograph Collection resort in California wine country. Over 75% of their portfolio revenue comes from resorts and leisure-oriented hotels. Through proactive asset management, DiamondRock has maintained industry-leading RevPAR premiums and margins at their resorts and derived significant value from strategic rebranding projects.
For investors seeking diversified exposure and robust income streams, leading resort investment firms like Marriott International, Blackstone, KSL Capital Partners, Driftwood Capital and DiamondRock Hospitality offer proven expertise in acquiring, developing and operating world-class hospitality assets across premier global destinations. Their deep understanding of the luxury resort market provides a specialized avenue to benefit from surging demand for exclusive and transformative travel experiences.