The evolution of global luxury hospitality
Growth in worldwide wealth vaults luxury travel to new heights resulting in an acceleration of global luxury hotel demand and increased investor interest
- Zach Demuth
- Ophelia Makis
- Jessica Jahns
- Marina Bracciani
The global luxury hospitality industry is undergoing a transformation. Once considered a relatively niche portion of the broader lodging industry, luxury hotels have exploded in tandem with rising global wealth and consumers’ increased prioritization on immersive experiences. Resultantly, the number of luxury hotel brands and supply have increased by more than one million rooms over the past 40 years, with investors taking notice as luxury hotels have become an increasingly institutional investment driven by accelerating fundamental performance and rising yields. Changing consumer preferences have also given rise to new investment opportunities, with traditional luxury hotel brands expanding into non-traditional verticals such as residences, yachts, and private member clubs with the goal of owning the entire travel journey. As the world becomes increasingly connected and travelers seek personalized experiences, look for luxury hospitality to evolve and grow even further.