With the rise of high-end tourism, investing in luxury resorts has become a popular option for investors looking to capitalize on this growing market segment. Luxury resort investment can provide attractive returns, but also involves substantial capital outlays and risks. Identifying the top luxury resort investment firms worldwide provides insights into major industry players and trends. This article will explore leading luxury resort investors globally, examining their investment strategies, portfolios, track records, and future outlooks.
The luxury resort investment sector has seen rising demand, driven by the expanding global wealthy population and their appetite for exclusive, high-end vacation experiences. However, selecting winning investment opportunities requires extensive market knowledge, development expertise, and capital resources. Established luxury resort developers and operators are well-positioned to identify prime locations, design differentiated concepts, and deliver exceptional service levels. Their market dominance provides economies of scale while mitigating risks. For investors, partnering with leading firms allows participating in this lucrative sector.
While risks exist, luxury resort investments can yield generous returns if executed properly. With in-depth research and careful selection, investors can gain exposure to this resilient, high-growth industry through its top players. The leading luxury resort investment firms worldwide have carved out commanding positions in this attractive niche through their capabilities, resources and vision.
Blackstone remains the preeminent global luxury resort investor with an extensive portfolio
With over $545 billion in assets under management, Blackstone is the world’s largest alternative investment firm. Blackstone has assembled the largest portfolio of luxury hotel and resort properties globally through high-profile acquisitions.
In 2016, Blackstone acquired Strategic Hotels & Resorts in a $6.5 billion deal, adding 16 luxury properties to its holdings. These included iconic resorts like the Ritz-Carlton Half Moon Bay and Four Seasons Resort Jackson Hole. Blackstone also purchased La Costa Resort and Spa in 2018 and the Cosmopolitan in Las Vegas in 2014.
Blackstone’s real estate group manages $167 billion in investor capital and emphasizes leisure-oriented assets like hotels and resorts. The firm targets luxury properties in prime locations that can achieve premium pricing and higher occupancy rates. Blackstone leverages its operational expertise to enhance performance through renovation, repositioning and new management.
With the largest global portfolio of luxury resorts and hotels, ongoing acquisition capacity, and operational prowess, Blackstone retains its leadership in luxury resort investment worldwide.
DiamondRock Hospitality constructs and acquires luxury resorts and urban hotels
DiamondRock Hospitality is a lodging-focused real estate investment trust (REIT) that invests in premium hotels and resorts. With a market capitalization over $2 billion, DiamondRock owns a portfolio of 33 properties across the United States.
DiamondRock’s investment activity focuses on the top 25 U.S. markets, targeting the luxury and upper upscale segments. The company has pursued a strategy combining acquisitions and development of new hotels and resorts. Key holdings include the Sonoma Renaissance Resort & Spa, Courtyard New York Manhattan, and Westin Boston Waterfront.
In 2018, DiamondRock completed the $97 million acquisition of Cavallo Point luxury resort in Sausalito, California. The LEED Gold-certified resort features expansive views of the San Francisco Bay along with a huge 11,000 square foot spa.
With its development pipeline and acquisition capacity, DiamondRock has cemented its position among the top luxury resort investment companies in America. The REIT structure also offers investors liquid exposure to the sector along with attractive dividend payments.
Host Hotels & Resorts is the largest lodging REIT globally with luxury resorts constituting over 25% of its portfolio
Host Hotels & Resorts is the largest lodging-focused REIT worldwide, with 84 luxury and premium hotels comprising nearly 46,000 rooms. The company has a total enterprise value approaching $20 billion, with owned hotels located primarily in the United States along with select international markets.
Host Hotels precursor was originally founded by the Marriott family, establishing the close relationship between the two companies that continues today. As of Q3 2019, Host operated 31 Marriott luxury properties, constituting over 25% of its total portfolio. High-end resort holdings include the Hyatt Regency Maui Resort & Spa and Andaz Maui at Wailea Resort.
In addition to its existing luxury resort and hotel portfolio generating significant cash flow, Host also has over $2 billion invested in its redevelopment and capital expenditure pipeline. Recent projects adding new luxury inventory include the renovation of JW Marriott Miami and Ritz-Carlton Naples.
With its dominant size, premium brand mix led by Marriott, and ongoing capital investments, Host Hotels & Resorts will remain one of the preeminent global luxury resort investors.
Sunstone Hotel Investors owns over $4 billion in luxury hotels and resorts, predominantly along the U.S. West Coast
Sunstone Hotel Investors is a lodging and hospitality REIT that owns 21 hotels constituting over 12,400 rooms with a total portfolio value exceeding $4 billion. Sunstone’s hotel portfolio is located in major West Coast markets along with East Coast urban gateway cities.
Sunstone’s investment strategy focuses on the profitable luxury and upper upscale segments, which collectively represent around 85% of the portfolio. Luxury resort holdings feature premier golf and beach destinations including the Hilton La Jolla Torrey Pines, Embassy Suites Waikiki Beach Walk, and Montage Laguna Beach.
In the long-term, Sunstone aims to enhance portfolio quality through strategic acquisitions and dispositions. The company sold over $560 million in lower-tier assets in 2018 to create capacity for acquiring luxury hotels and resorts in target high-barrier-to-entry markets.
With its concentration in top-tier western U.S. destinations and urban RevPAR growth leaders, Sunstone owns a prime luxury resort portfolio and remains well-positioned for attractive risk-adjusted returns.
Genting Berhad has amassed a colossal global portfolio of resorts, casinos, hotels and cruise lines
Malaysia-based Genting Berhad operates a highly diversified leisure and hospitality empire spanning casinos, integrated resorts, hotels, theme parks and cruise lines. Founded in 1965, the company has aggressively expanded worldwide and now owns over $16 billion in total assets.
Genting’s portfolio includes over 6,000 hotel rooms across Malaysia, Singapore, the UK, the U.S. and the Bahamas. Marquee luxury resorts and hotels include Resorts World Las Vegas (under construction), Resorts World Bimini, and Resorts World Birmingham. Genting also recently announced a $4 billion luxury integrated resort in Osaka, Japan breaking ground in 2021.
In addition to its owned properties, Genting has partnership investments in prestige projects like Resorts World Miami and Resorts World Catskills. The cruise division also operates luxury Crystal Cruises focused on the upscale market.
With its unmatched global footprint of integrated resorts and luxury hotels, Genting has firmly established itself among the elite luxury resort investors worldwide.
Luxury resort investment provides enticing opportunities but also substantial risks. Partnering with established industry leaders allows tapping into prime properties while benefiting from proven operational expertise. Blackstone, DiamondRock Hospitality, Host Hotels & Resorts, Sunstone Hotel Investors and Genting Berhad constitute the top luxury resort investment firms worldwide based on the scale and quality of their portfolios.