If you can’t find capital for a true luxury boutique hotel right now, you’re either selling junk or talking to the wrong people.
Because here’s the truth: money isn’t scarce in this segment — it’s flooding. Family offices, private capital, even institutions are elbowing for a seat at the same very small table. Call it a frenzy, call it a feeding, but if you’re holding one of these hospitality jewels, you’re not chasing capital. Capital is chasing you.
On the other side of the street, the picture is rough. Room revenues have slipped: down -0.5% in Q2, -1.1% in July, and another -1.1% in August. For economy motels and midscale chains, the struggle is real.
But that arithmetic has nothing to do with the top of the pyramid. In the rarefied world of sub-100-key, identity-rich luxury hotels, the numbers tell a very different story — record-breaking rates, full houses, and demand so strong it defies gravity.
• Virtuoso reports ADRs of $1,540 in 2024 and $1,575 in the first half of 2025 — both record highs.
• Occupancies at the top are running well into the 60s and 70s across major markets.
• RevPAR isn’t contracting — it’s climbing.
• At Hôtel du Cap-Eden-Roc last week, entry rooms were selling at €3,500+ in peak season, and it’s booked solid year after year. I only got in because I booked a year in advance.
This is a tiny slice of the industry, but it delivers outsized revenue and disproportionate returns. That math is irresistible to allocators.
So when owners of upmarket boutique hotels complain they can’t find buyers, I’m baffled. If a property is truly best-in-class, capital is lining up. When sellers struggle, it usually comes down to two things: they’re talking to the wrong people, or they’ve failed to show the asset for what it really is.
Stop acting like you’re begging. In this market, you’re choosing.
If you want the unvarnished playbook every week, it’s here: https://lnkd.in/gRc4FKKA
