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where high interest rates, availability of funds and bloated labor costs are challenges facing developers.
In the case of W Pompano, sales for the residences, which reportedly start at $ 3 million, began in January 2025 and it’ s the residential sales that dictate when construction of the project begins. Right now, 2027 has been given as a potential start date.
A north star in luxury delivery is Four Seasons Hotels and Resorts, which, unlike some of its peers, has resisted any urge to add new brand extensions either above or below it; it remains singular, which gives it gravitas. But even a preeminent luxury brand like Four Seasons isn’ t immune to macroeconomic pressure. Similarly, said Sheila Farahpour, SVP of development, Americas at Four Seasons Hotels and Resorts, and because of financing troubles, many
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luxury projects are only able to get off the ground if there is a residential component affixed. She also cited the growth opportunity in standalone residences,“ particularly in markets where a hotel may not be feasible or where residential demand outpaces hospitality.” Four Seasons has a pipeline of standalone residences in the U. S., in Lake Austin, Texas, Coconut Grove in Miami and Las Vegas.
Four Seasons currently has a pipeline of more than 60 projects and by 2033 aims to operate 180 properties. One of its anticipated projects is the reopening of Four Seasons Resort The Biltmore Santa Barbara later this year. It comes on the heels of the reopening of Four Seasons Hotel New York. Farther out are properties in Deer Valley, Utah, and Jacksonville, Fla., which Four Seasons is building with Shahid
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Six Senses La Sagesse Grenada opened earlier this year.
Khan, owner of the Jacksonville Jaguars.
Other recent luxury announcements include Rosewood Hotels & Resorts’ entry into Dubai with a hotel and residences slated for an opening in 2029. Mandarin Oriental recently announced the expected opening of Mandarin Oriental, Xi’ an in 2029, marking the group’ s first urban resort in Northwestern China.
ROOMS REDUCED Data suggest that the headwinds to U. S. luxury construction have not stunted the pipeline by projects, but the scope of those projects has become smaller by room count. According to Lodging Econometrics, a firm that charts hotel development globally, the total luxury new construction pipeline in the U. S. in Q2 2020, at the outset of the global pandemic, stood at 88 projects and 25,666 rooms. By
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Q2 2025, the total luxury new construction pipeline was 92 projects and 21,119 rooms.“ The pipeline has remained pretty constant through the pandemic, but the size of the projects has continued to consistently decline,” said Bruce Ford, SVP and director of global business development at Lodging Econometrics.
He’ s not wrong. Around the same number of luxury properties open each year in the U. S.: 17 in 2024, 16 slated for this year and 16 and 13 scheduled to open in 2026 and 2027, respectively. However, according to the numbers, the room counts almost halve when comparing 2024 to 2027.
The data diverge on a global scale. According to Lodging Econometrics, 140 hotels totaling 26,114 rooms opened in 2024. This year, the number of openings is forecasted to be 255 properties representing 46,674 rooms; next year, the numbers are approximate to 2025. There’ s a reason for this contrast, said Ford.“ When we talk luxury growth, a significant portion is in Asia, mainly China. This is one of the few places in the world where they are still building a hotel supply of Western brands.”
PMZ’ s Berk, noting the dearth of ground-up U. S. luxury development, is more confident on luxury deals in Asia Pacific and in the Middle East, where, he said, labor and operating costs are significantly less.“ It makes sense.”
IHG Hotels & Resorts is no stranger to luxury and is
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24 hotelsmag. com Sept / Oct 2025 |