DEVELOPMENT |
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A villa at TROBBU Tulum in Mexico. |
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THE CURRENT AND FUTURE APPETITE FOR LUXURY DEVELOPMENT GLOBALLY IS INCREASING
– ELIAS BARBOSA, CEO, TROBBU
are also in the market opening hotels. Elias Barbosa has been involved in the real estate sector for more than 25 years with
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such companies as Hyatt Hotels and Iberostar. A few years ago, he launched TROBBU, a vertically integrated luxury boutique hotel group. It opened its first property in Tulum in February. Future openings in Mexico include San Miguel de Allende, Mérida, Yucatán, Mahahual Riviera Maya and Los Cabos, with Madrid also slated for opening within the next few years.
Barbosa said that while capital markets have made development tougher, against a backdrop of stiff competition, he said that TROBBU’ s edge is differentiation: In resort areas, like Tulum, where rates start at around $ 1,000 per night, it’ s an all-inclusive product, while urban locations will be a more standard luxury offering.“ The current and future appetite for luxury development globally is
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IT’ S VERY DIFFICULT TO MAKE LUXURY WORK
– LUIGI MAJOR, MANAGING
DIRECTOR, ADVISORY, HVS
AMERICAS
increasing,” Barbosa said.“ The quality of the experience is the most important factor for guests.”
New may be better, but sometimes it’ s cost prohibitive,
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one important reason why many brands and investors have focused more to date on conversions— wherein an asset is acquired, typically given a PIP, or property improvement plan, and flipped to a new brand or taken independent. Instead of waiting several years for a hotel to open, with conversions, the revenue spigot stays in the on position. Consider IHG: Its total global conversion signings nearly doubled between 2023 and 2024. Other lodging companies have introduced conversion brands to nurture the trend.
“ The best deals from a typical return on investment, or things really penciling out, are the conversion deals, because you don’ t have to build the structure brand new,” said HVS’ Major.“ A lot of savings goes into that.”
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26 hotelsmag. com Sept / Oct 2025 |