Luxury resort real estate has become an increasingly attractive investment asset class in recent years. With high-net-worth individuals and families seeking exclusive vacation properties and experiences, top real estate developers and investment firms have focused heavily on luxury resorts. This article will analyze the top luxury resort investment companies in 2020 that lead the market in high-end resort development and acquisitions globally. It will look at their investment strategies, top projects, and future outlooks. The analysis will also provide insights into luxury resort investment trends and opportunities going forward.
Marriott leads with its high-end brands and global development pipeline
Marriott International has established itself as the foremost luxury resort investor and operator globally through leading upper upscale brands like The Ritz-Carlton, Ritz-Carlton Reserve, St. Regis, W Hotels, The Luxury Collection and EDITION. It has the largest global development pipeline in the luxury segment with over 185 luxury properties in the works. Some of its newest luxury resorts in 2020 include The Ritz-Carlton Maldives, The St. Regis Venice, and The Ritz-Carlton Reserve in Mexico. Marriott’s strength lies in its loyalty program, global sales and distribution, and ability to operate multiple luxury brands. It remains focused on expanding its luxury resort portfolio, especially in leisure destinations.
Blackstone makes big bets on luxury resort real estate
Private equity giant Blackstone has made strategic luxury resort investments in recent years, deploying over $6 billion in high-end leisure real estate. It acquired the Bellagio and MGM Grand in Las Vegas in 2019. In Hawaii, it partnered with Marriott to acquire the iconic Grand Wailea Resort. Blackstone is bullish on luxury resorts due to favorable supply-demand dynamics and strong pent-up demand from wealthy travelers. It aims to upgrade its resort assets and charge premium pricing. Blackstone’s financial strength and operational expertise makes it a formidable player in global luxury resort real estate investment.
Accor accelerates growth with acquisitions of FRHI and Mantra Group
French hotel group Accor has aggressively expanded its luxury resort footprint, especially in the past 5 years. Its acquisitions of FRHI (Fairmont, Raffles and Swissotel) in 2016 and Australia’s Mantra Group in 2017 greatly boosted its luxury resort brands and properties in key leisure destinations. Accor now boasts an unrivaled collection of iconic luxury resorts globally including Raffles in Seychelles, Fairmont Maldives and Swissotel Resorts in Australia. Its robust development pipeline will see exciting new luxury resorts opening under its Raffles, Fairmont and Sofitel brands in the coming years.
The growth strategies of leading luxury resort investors like Marriott, Blackstone and Accor highlight promising prospects in luxury leisure real estate. With demand expected to make a robust recovery post-pandemic, investors are likely to continue allocating substantial capital into high-end resort development and acquisitions globally.