Luxury resort investment has become increasingly popular among high net worth individuals and investment funds looking to diversify their portfolios. As the high-end hospitality industry continues to grow worldwide, especially in Asia and the Middle East, more investors are attracted by the high yields and prestige associated with owning luxury hotels, villas and resorts. This article provides an overview of the top 10 luxury resort investment companies in 2020, as ranked by total assets under management, with a focus on their investment strategies, flagship projects and growth prospects. With high barriers to entry and expertise required, these established players lead the way in acquiring, developing and managing ultra-luxury mixed-use resorts and residential communities globally.
Blackstone remains top luxury resort investor with high-profile assets
The Blackstone Group tops the list as the world’s largest private equity firm investing in luxury hospitality assets. With over $160 billion in real estate assets under management, Blackstone owns numerous luxury resorts and hotels globally following major acquisitions. Flagship assets include the high-end La Costa Resort in California, the Hotel del Coronado in San Diego, and Hotel Arts Barcelona. Blackstone also acquired Spain’s largest casino and bingo hall operator, Cirsa, in a $2 billion deal. With deep financial resources and expertise in luxury mixed-use development, Blackstone is poised for more resort acquisitions and ground-up development projects.
Marriott leads in luxury resort management with Ritz-Carlton brand
As a leading global hotel operator, Marriott International has an extensive luxury resort portfolio under brands including The Ritz-Carlton, Ritz-Carlton Reserve, St. Regis, W Hotels, The Luxury Collection and EDITION. Its acquisition of Starwood Hotels further expanded its luxury footprint. Marriott focuses on management contracts rather than ownership, with over 420 luxury properties globally. Its expertise in luxury hospitality operations and marketing makes it a preferred resort manager for developers and investors seeking reliable brand management. In 2020, Marriott continued expanding in leisure destinations from Mexico to Thailand.
Accor accelerates growth in luxury resorts segment
Accor is one of the world’s largest luxury hotel operators with an unrivaled portfolio of brands including Raffles, Fairmont, Sofitel, MGallery, Pullman, Swissôtel and Banyan Tree. It aims to double its luxury footprint by 2023 by accelerating acquisitions and conversions globally. Accor added numerous luxury resorts to its network in 2020, such as Raffles at Udaipur and Jaipur in India. It also launched Emblems Collection for luxury boutique hotels. With robust development pipelines and strategic partnerships, Accor is actively growing its luxury resort inventory to cater to high-end demand.
Dubai’s Emaar expands ultra-luxury hospitality footprint
As Dubai’s leading master developer, Emaar has developed numerous branded residential resorts and luxury hotels under its hospitality subsidiary Emaar Hospitality Group. Its hotel portfolio includes Address Hotels + Resorts and Vida Hotels and Resorts with a pipeline of over 30 projects in the UAE, Saudi Arabia, Egypt and Turkey. Emaar manages a large portfolio of Dubai’s most iconic luxury hotels including Address Downtown, Palace Downtown and Address Sky View. It continues to develop ultra-luxury hotels and villas in integrated resorts and mixed-use projects like Dubai Creek Harbour.
Las Vegas Sands pursues integrated resort investments in Asia
Las Vegas Sands is a leading global developer and operator of integrated resorts, with its flagship properties in Las Vegas and Macau. It derives the majority of its revenues from Asia with luxury integrated resorts like Marina Bay Sands Singapore. The company is pursuing new large-scale mixed-use projects with hotels, casinos, entertainment and MICE facilities in Japan and other Asian markets. Las Vegas Sands leverages its capabilities in developing and managing the world’s most profitable integrated resorts to create unique luxury hospitality and leisure experiences.
Dubai Holding expands luxury resort portfolio
As one of Dubai’s largest conglomerates, Dubai Holding owns and operates an extensive portfolio of hospitality and leisure assets through Dubai Properties Group and Jumeirah Group. Its developments include Madinat Jumeirah with luxury hotels like Burj Al Arab and Jumeirah Al Naseem. It is developing new luxury beachfront resorts like Jumeirah Al Seef in Dubai Creek Harbour. Dubai Holding focuses on developing integrated luxury master-planned communities featuring hotels, residences and marinas, positioning it as a significant player in luxury resort real estate.
Hyatt accelerates growth in luxury resort destinations
Hyatt has grown its luxury resort portfolio globally under brands like Park Hyatt, Andaz, Grand Hyatt, Alila and Unbound Collection. It added more than 10 new Park Hyatt luxury resorts in leisure destinations in 2020 alone. Hyatt’s acquisition of Two Roads Hospitality also expanded its wellness and lifestyle resort inventory. It continues to prioritize strategic investments and management agreements to expand its resort footprint, especially in Asia Pacific and the Middle East. Hyatt’s growing luxury base gives it a competitive edge in resiliency and caters to high-end demand post-COVID.
Hilton amplifies luxury all-inclusive resort presence
Hilton has strengthened its leadership in luxury all-inclusive resorts and leisure travel through acquisitions and organic growth. It greatly expanded its presence through the acquisition of Diamond Resorts, adding 94 properties to its portfolio. Hilton also launched Signia Hilton, a dynamic meetings and events-focused brand debuting in Orlando. The company continues to invest in luxury resorts to capitalize on pent-up leisure travel demand. Its development pipeline is focused on bringing its flagship Conrad and Waldorf Astoria brands to more resort destinations.
Sunrise Kempinski strengthens portfolio in Middle East and China
Sunrise Kempinski Hotels is Europe’s oldest luxury hotel group and owns numerous iconic properties in the Middle East and China. It has been actively growing its portfolio of ultra-luxury resorts, hotels and residences in partnership with leading developers. Highlights include The Palace Hotel in Dubai, Kempinski Hotel Chengdu, and Yanqi Lake Kempinski outside Beijing. Sunrise Kempinski offers developers an experienced luxury brand and hotel operator to enhance residential and mixed-use projects, especially in China’s vast second-home market.
Omniyat leads branded luxury residential development
Dubai-based Omniyat has established itself as a leading international luxury developer creating branded residences with premier hospitality brands like The Langham and The Dorchester Collection. Its projects set new benchmarks for branded luxury living, exemplified by The Opus in Dubai. Omniyat also made its entry into the ultra-luxury resort market, securing management agreements with luxury names like COMO and SO/. The company is expanding into large-scale mixed-use communities featuring branded hotels, villas, residences and retail.
In summary, the leading luxury resort investment companies are dominated by major private equity firms like Blackstone as well as large hotel operators including Marriott, Accor and Hyatt. Dubai-based master developers like Emaar and Dubai Holding are also growing their luxury hospitality footprints in integrated resorts. With demand thriving for luxury experiences, these sophisticated investors offer the financial resources, industry expertise and brand partnerships to continually expand into premium leisure destinations and high-end residences globally.