Luxury Hospitality Continues to Attract Investors in 2025

At the International Luxury Travel Market (ILTM) in Cannes last December, Hyatt Hotels Corporation announced plans to open over 50 new luxury and lifestyle hotels by 2026. The company, valued at over $11 billion in 2023 (Statista), ranks as the fourth-largest hotel group globally, trailing Marriott International with a $60.5 billion valuation. Since 2017, Hyatt has doubled its number of luxury rooms and quintupled its lifestyle offerings, reaching 256 hotels in these segments by 2024. In the same month, luxury giant LVMH, owner of brands such as Belmond, Bulgari, and Cheval Blanc, acquired a minority stake in Les Domaines de Fontenille, a collection of 11 high-end properties in France, Italy, and Spain. Partnering with investment firm Anaïs Ventures, LVMH views this move as a strategic extension of its hospitality offerings. Jean-Jacques Guiony, LVMH's CFO and soon-to-be head of its Moët & Hennessy division, commented: "This financial investment in Les Domaines de Fontenille is an opportunity to explore a complementary segment within our hospitality portfolio."

This diversification aligns with an increasing appetite among luxury consumers for exclusive destinations that combine natural settings with wellness and gourmet experiences. The EHL Insights Reports on Hospitality Trends 2025 notes: "In response to rising mental health concerns, travelers seek enriching experiences that enhance quality of life while nurturing the mind, body, and soul. This transformative travel trend allows consumers to reconnect with themselves through the quality of their stay."

The luxury hotel sector's growth is evident in the increasing number of ultraluxury hotel rooms, which rose by 46% over the past decade to 197,000 globally in 2023, according to Statista's The Rise of Luxury Hospitality report. Investments in this segment soared, with the total value of mergers and acquisitions reaching $286 million in 2023—nearly triple the $106 million recorded in 2022. In Europe, transactions involving hotels priced at over €1 million per room accounted for 12.2% of the market, nearly doubling year-on-year. According to the Rise of Luxury Hospitality report, This trend reflects the influx of new investors, including real estate developers and private equity magnates, drawn to the sector's high profitability. The annual return rate exceeded 6% in 2022, according to real estate firm JLL, the highest figure of the decade. For example, according to Statista, Saudi Arabia's Public Investment Fund (PIF) injected over $1 billion into the Aman Group in 2023 and purchased a 49% stake in Rocco Forte Hotels for $1.8 billion the previous year. Rocco Forte owns iconic properties such as Brown’s Hotel in London and the Hotel de Russie in Rome.