such brands as Regent and the sustainably minded Six Senses .
Luxury hotels are not a new thing , but COVID times were boom times for them , especially luxury resorts with ample space and outdoor amenities and experiences . The pent-up demand gave luxury properties “ amazing pricing power ,” said Erin Green , VP of development and acquisitions at Auberge Resorts Collection . “ It ’ s let the good times roll .”
The data don ’ t disagree . Though room nights costing a grand a night may not be the norm everywhere , they still are spicy . According to CoStar , luxury hotel average daily rates year-to-date August 2024 were $ 415.64 , which was more than $ 190 higher than upper-upscale hotels . As lofty as it sounds , it was 2.5 % lower than during the same period in 2023 , which points to a deceleration or further normalization of luxury hotel rates . Still , while rate enervated some , RevPAR was $ 2 higher at $ 282.18 , the result of a 2-percentage-point rise in occupancy .
Six Senses La Sagesse in Grenada , the brand ’ s first property in the Caribbean , opened in April 2024 .
LUXURY HAS LEGS A lack of new supply across the entirety of the hotel industry and all chain scales has been a theme since the pandemic , but Green said that is turning , citing a robust luxury development pipeline . According to CoStar numbers , existing luxury hotel supply in the U . S . is 502 hotels with 36
currently under construction .
Those numbers could , in fact , swell , especially as interest rates come down and hotel construction becomes easier for developers and more palatable for lenders . “ There are owners out there with dry powder ,” said Jenna Jacobson , VP of luxury and mixed-use development at
Four Seasons Resort Jackson Hole in Wyoming includes workforce housing .
Oct / Nov 2024 hotelsmag . com 11