The original article appeared in Forbes
Wealthy Americans – particularly the ultra-rich – are increasingly favouring private holiday homes over stays in luxury hotels. The desire for more privacy and space is driving this trend, while high expectations for amenities – concierge services, private chefs, housekeeping, in-villa spas – are now the norm. In response, more and more luxury hoteliers are developing villa-style accommodations, at the risk of losing some of this demand.
According to Statista, the global holiday rental market is expected to generate $105 billion in 2025 and reach $125 billion by 2029. Competition is intense, driven by the rise of ‘fractional ownership’ models and private investment clubs. French luxury players such as Fontenille Collection and Iconic House are expanding their portfolios of properties that are as sumptuous as they are stylish. Others, such as Equity Estates, allow globetrotting investors to put their money into a real estate portfolio with potential for capital appreciation. Travelling while earning money? A dream turned into a strategy.
The latest offensive in the ultra-luxury market comes from Exclusive Resorts, a private club majority-owned by Steve Case (co-founder of AOL), with a billion-dollar portfolio comprising more than 400 private residences in 75 destinations.
‘We own and manage more than 70% of the property portfolio. And thanks to a major shareholder, we have great strategic flexibility to grow the club,’ explains James Henderson, CEO of Exclusive Resorts
Growth that requires new levers
Last month, Exclusive Resorts announced that it was acquiring a majority stake in Onefinestay, a subsidiary of the Accor group specialising in holiday rentals. The amount of the transaction has not been disclosed, but this operation allows for commercial synergy and expanded access to new markets. Onefinestay offers approximately 3,000 properties (houses, villas, chalets) in 40 destinations, including London, Los Angeles, Paris, New York, as well as Tuscany, the Caribbean, Thailand and the south of France.
‘For me, private villas and yachts are currently the most sought-after products among high net worth clients,’ explains Jaclyn Sienna India, CEO of Sienna Charles. ‘Everything is customisable: from the captain to the chef.’
This model appeals because it offers a totally personalised experience, without the constraints of maintenance or insurance. Exclusive Resorts is now moving into branded residential real estate, with its first project on the Cacique Peninsula in north-western Costa Rica.
‘Our members are not just frequent travellers. They are also potential buyers. Offering them the opportunity to invest in residences that bear our signature of quality and service is a natural extension of our offering,’ says Henderson.
The villa style is popular
Everything is designed for immediate enjoyment: a fully stocked bar, fresh flowers, outdoor showers, a jacuzzi… You jump on the bed laughing, without restraint. This isn’t a hotel: you’re at home. It’s your fridge, your coffee machine, your cosy bathrobe.
Room service? Outdated. You can have the ingredients of your choice delivered and a private chef will prepare local dishes such as red snapper in banana leaves, ginger rice or fragrant sofrito. Simple products – mangoes, avocados, coconuts fallen from trees – are just as dreamy. And the coffee? On another level.
This type of travel appeals to a wealthy clientele seeking exclusivity, freedom and tailor-made services that go far beyond hotel standards. If you can afford the dizzying membership fees, living like this becomes a very serious temptation.
