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Under the hood, demand is changing in nature rather than intensity<\/b>. HNWI travelers, Millennials, and Gen Z<\/b> say they prioritize personal transformation (well-being, active nature, themed retreats) and multigenerational stays<\/b>. The \u201cmust\u201d is no longer ostentation, but the memory of a moment<\/b>, such as insider culinary expertise, local craftsmanship, a sleep and recovery retreat, or an arts and crafts workshop. The Virtuoso and Amex Travel barometers<\/b> confirm this and show a rejuvenation of the mix, with a quest for experiences.<\/p>\n
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Looking at the world map, the message from investors is clear: London, New York, and Tokyo are capturing the appetite, with an urban rebound supported by the return of long-haul flights. London has returned to pre-COVID occupancy levels and remains a priority destination. It is a deep market, dense with events.<\/p>\n
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In New York<\/b>, there is a new, structurally constrained supply<\/b> (special permits for all new hotels) and part of the demand that has shifted to hotels<\/b> after the crackdown on short-term rentals. This double effect is providing sustained support for high-end prices, in addition to international tourism.<\/p>\n
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In Asia, Tokyo and Osaka<\/b> are riding the wave of the inbound boom<\/b>. Capital cities are attracting high-spending intra-Asian and long-haul customers, with an increase in wellness\/cultural components as an integral part of the product. The consequence for luxury is higher price floors and pressure on occupancy, primarily linked to the growth in supply rather than a shift in demand.<\/p>\n
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At the other end of the spectrum, the \u201cpremium nature\u201d resort seems to be here to stay. East Africa is seeing a boom in ultra-luxury safaris. Marriott has opened the JW Marriott Masai Mara Lodge and is preparing to launch a Ritz-Carlton Masai Mara Safari Camp, both of which are very high-priced products that are real reasons to travel.<\/p>\n
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The Middle East<\/b> is playing a different tune, that of giga-destinations<\/b>. The Red Sea<\/b> is gradually opening its hotels, such as the St. Regis Red Sea and the Nujuma \u2013 Ritz-Carlton Reserve, with the ambition of using 100% renewable energy. NEOM<\/b> is rolling out ultra-high-end concepts, such as Epicon<\/b> and Leyja<\/b>, combining iconic architecture and pockets of nature.<\/p>\n
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High-end wellness<\/b> is the main driver<\/b>. The global wellness economy is worth around $6.3 to $6.8 trillion and is targeting $9 trillion by 2028, according to the Global Wellness Institute<\/b>, with growth of 7.3% per year<\/b>, faster than GDP. For the hotel industry, this means monetizable \u201creasons to go,\u201d such as longevity retreats, sleep and recovery, new-generation thermal spas, and nutrition and exercise.<\/p>\n
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In addition, branded residences<\/b> (operated or hotel-affiliated) are moving from a niche market to a global asset class<\/b>. Branded residences sell for an average of 30% above market value<\/b>, and the pipeline is swelling with approximately 690 projects delivered by mid-2023 and 600 in development<\/b> for delivery by 2030.<\/p>\n
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Nature-premium and<\/b> \u201crare venues\u201d<\/b> are other factors that will reshape the offering. Safaris, protected archipelagos, mineral valleys, and regenerative agricultural estates<\/b> are the new \u201cwhite spaces\u201d of luxury<\/b>. They require impact engineering (conservation, carbon, local employment) and an experience design capable of justifying very high prices.<\/p>\n
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Luxury hotels are no longer competing for square footage, but rather for attention, expertise, and meaning<\/b>. Where the offering is truly unique and the local footprint is positive and proven, pricing power remains<\/b>. The next phase of growth will come from ecosystems of well-being, residences, clubs, and culture, rather than isolated assets, locked-up capital, rare natural features, and a narrative where hospitality is worth more than the nightly rate.<\/p>\n
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