I Edit Caribbean Guidebooks, but THIS Is My Favorite Place to Island Hop

I Edit Caribbean Guidebooks, but THIS Is My Favorite Place to Island Hop

https://www.fodors.com/world/europe/croatia/experiences/news/why-islands-in-northern-croatia-are-underrated-places-for-a-quiet-and-secluded-getaway

Yoojin Shin

Peace, seclusion, and privacy are becoming—and in some ways, have always been—the ultimate sought-after luxuries. Were the Northern Adriatic islands the place to find them?

Standing on the marina in Zadar, Croatia, I searched for the ferry that would take me to Zaglav, a port town on the island of Dugi Otok. It was a late-September morning, the air crisp to the skin, the deep blue water lapping gently against the concrete. Small ferries and boats lined the marina, some with laundry drying on the railing. Zadar was a port city, after all, and boating was a part of its everyday life and leisure.

With 1,244 formations—including islets and rocks—Croatia is the second largest archipelago in the Mediterranean, after Greece. Forty-nine of these formations are permanently inhabited islands, and of these, the most densely populated, Krk, is home to less than 18,000 people. This number dramatically drops for other, lesser-populated islands: Dugi Otok is home to less than 1,700 permanent residents, spread out across its 44 square miles of dry, limestone-heavy terrain.

As the editor of Fodor’s Essential Caribbean, I was no stranger to islands; but such sparsely populated ones, such as Dugi Otok and its 40 people per square mile, remained an uncharted territory.

CNTB/Ivo Biocina

Dugi Otok

Dugi Otok, translated to “Long Island” for its shape, is an excellent starting point for island-hopping in Croatia’s northern coast. Its rocky terroir is populated with pines, oaks, and aromatic shrubs, but the olive trees are the true stars, dotting the hills in organized clusters. Olives and olive oils are the island’s main agricultural products and have been for hundreds of years; the tradition of olive cultivation itself dates back to Roman antiquity.

Žman, a hilly coastal village on Dugi Otok, has a permanent population of around 200 people. “Everyone knows each other here,” Frane, my driver from Zaglav to Žman, said. “Where people work, what they do, everything.” In late September, when I visited, the tourist season was coming to a close; the already sparse tourist crowd had thinned even further, so much so that our car quickly became the only vehicle tumbling across the gravelly road.

In the southern edge of Žman, the hills of olive groves cradle the magnificent stone façade of Villa Nai. Ostentatious opulence—gilded walls, heritage carpeting, dripping chandeliers—is not the name of the game here; instead, low ceilings, an abundance of limestone, and floor-to-ceiling glass doors create a feeling of comfortable and understated luxury. With just eight rooms on the property, the service is truly bespoke: It doesn’t take long for the staff to know my name, my breakfast coffee order, and my itinerary.

From my private outdoor terrace, I stepped onto the stone path that weaved through the olive trees to the edge of the hillside. The air carried the woodsy, herbal, and sun-soaked aroma of the rocky soil. From the edge of the hill, where an infinity pool stretched beneath the swaying olive trees, I could see the nearby island of Krknata, and the islands further to the mainland overlapping in undulating slopes.

Villa Nai is a good base for reaching the surrounding villages. From the property, the center of Žman is a vigorous 20-minute walk—or a hike, depending on how you feel on the gravelly, and occasionally, sloping path. A 10-minute drive takes you to Sali, a slightly bigger village with small restaurants, cafes, and shops lining the marina. A coffee or beer by the water is the height of afternoon activities in both Žman and Sali, but they are garnishes to the main attraction: The sea beckons with the possibilities of more thrilling adventures.

                          

National Park Kornati

Kornati National Park

Croatia has eight national parks, stretching across forested mountains, islands, and lakes. One of them lies conveniently close to Dugi Otok: The Kornati National Park—composed of 89 islands, islets, and reefs scattered across the sea—is reachable by boat from the island’s southernmost shores.

My boat captain, Mr. Tomislav Čarić—Tome, for short—was a kind, suntanned man with pale hair and a weather-worn grip. We sailed southeast and by the time we entered the boundaries of the park, Tome suggested that I sit on the bow of his boat to observe the towering rocky cliffs: The wind and the waves of the Adriatic Sea had carved the limestone cliffs over millions of years to a transcendent, jagged effect.

None of the islands in the national park are permanently inhabited, and the naturally rocky terrain and lack of reliable freshwater make agriculture challenging. Still, many islands remain privately owned, with long stone walls demarcating the boundaries of each family’s land. Each October, the olive groves are harvested with great difficulty: Workers must sail to the islands, hike to the trees with their supplies, and manually pick the fruit. During the cooler months, goats and sheep are transported by boat to graze on the sparse vegetation. Such traditional agricultural practices are in decline now, pursued more out of respect for tradition and heritage than for financial gain. Whatever practices do remain are regulated by the government for the purposes of environmental preservation.

Such efforts are rewarded with breathtaking marine life, which makes snorkeling around the Kornati islands excellent: Many different types of fish, sea horses, moray eels, and even an occasional octopus make an appearance. Lobsters trickle in and out of the rocky seabed, though they are hard to spot for a surface-level snorkeler; deep dives, the right timing (usually towards late evening), and luck are all necessary ingredients.

Tome halted the engine to a gliding stop on Bay Lojena, on the island of Levrnaka. Two boats floated nearby, with their passengers lapping around the water. The turquoise water was clear enough to show fish darting in synchronized schools. Tome took out a bag of bread. “I always bring bread for my friends here,” he said, gesturing to the fish below the boat.

Lidija Lolić

An afternoon out in the sea calls for a drink. The main island of Kornat has several bays with a number of no-frills konobas—equivalent to a simple tavern, or a bistro—perfect for a relaxing pit-stop. On Bay Vrulje, Tome and I stopped at Konoba Robinson, where he ordered a glass of ice-cold white wine. The seafood is simple but fresh here and across the bay at Konoba Ante Vrulje.

On our way back to Žman, I mused about the lack of phone service and its potential dangers out at sea. Tome smiled and said that he preferred it that way. A love for the disconnect that comes with sailing into the open sea is something that is shared among boat captains from the Caribbean to the Adriatic. For Tome, boating was a job and a passion: It wasn’t unusual for him and his friends to depart the islands’ shores at night and return in the early morning with the night’s bounty. Weather permitting, the skies over the Kornati islands are especially dark at night, with an abundance of glittering stars and the Milky Way in clear view. I am told that it is a life-changing experience for the uninitiated.

CNTB/Ivo Biocina

Losinj

Riding a private speedboat offers an experience entirely different from the one on a larger boat or ferry; in short, it’s windy, bouncy, and fast.

As the boat glided towards the shore of Čikat Bay, its coastal villas appeared in startling, picturesque clarity. Shrouded by the deep greens of the Aleppo pines, the powder-pink facade of the historic Villa Carolina emerged into my view, then others, in varying shades of cream, red, and terra-cotta—the last of which housed Boutique Hotel Alhambra.

The hotel is devilishly handsome, with a striking Austro-Hungarian façade that sports an arched loggia. A portion of this loggia was allotted to my room as a balcony, which meant that, with my doors opened, I could see and hear the entire Čikat Bay undulating beyond the archways. Under the white sun, the seawater was blue-green and as clear as a swimming pool. The noise pollution was close to nonexistent, beyond the swaying of the trees and the ripples of the water.

Rest and convalescence are clear natural byproducts of this environment. During the rule of the Austro-Hungarian Empire, the island of Lošinj was popular as a health tourism destination for the affluent upper classes. In the late 19th century, sanatoriums, spas, and seaside villas cropped up along the coast to take advantage of the island’s mild climate and clean sea air, which were believed to be beneficial for helping patients recover from respiratory illnesses and allergies. Now, high-end hotels and villas offer an assortment of spas and wellness programs that take advantage of the island’s abundance of pines (think forest bathing) and medicinal herbs.

Classic Mediterranean pleasures await on Čikat Bay and the nearby town of Mali Lošinj. It is entirely possible—and advisable—to while away a whole afternoon on Hotel Alhambra’s private beach, swimming, sunbathing, and dozing off in repeat. The post-swim hunger is best satisfied by the Croatian škampi: Not to be confused with shrimp, škampi is a lobster-like crustacean prized for its delicate, sweet flavor, and the ones caught in the Northern Adriatic are considered by some as the best in the Mediterranean. The closest place to sample them in their full glory is on the promenade at Konoba Cigale, where the tomato-based seafood buzara—which translates to stew, though a buzara is thicker—was cooked with plenty of mussels, linguini, and Croatian škampi.

A pleasant 15-minute walk through stone-walled, sun-soaked paths lined by residential houses took me to Mali Lošinj, where I surveyed a range of shops selling gelato—or sladoled, in Croatian. Afterwards, I strolled across the marina to visit the Museum of Apoxyomenos, which displayed a stunning Greek bronze statue recovered from the seabed near Lošinj in nearly perfect condition. Nearby, Art Shop Čarobnjak sells a range of handmade ceramics in eye-catching patterns, including mind-boggling sculptures of local marine life.

But for me, the height of all pleasures was the simplest: the sensorial delight of stepping off a rocky coast and swimming across a bay brimming with the warm, buoyant water of the Mediterranean. Over the two days I spent on Čikat Bay, I found myself returning to the sea over and over again, my nose upturned and my eyes closed, taking in the storied sea air.

Museum of Apoxyomenos

Hrvoje Serdar

The Northern Adriatic islands, as anywhere else in the world, are wrought with their own problems. Prices in Croatia have risen steadily over the past several years, particularly after COVID-19. Poslovni Dnevenik, a Croatian business newspaper, reported in September 2025 that food prices in Croatia will grow twice as fast as the projected rate across the Eurozone in 2026. The island residents, who already had higher costs of living than those in the mainland, face correspondingly heavier challenges.

Jobs, in general, are hard to come by for those without a specific trade, and it’s difficult for the islands to attract long-term talent across many industries.

“Many people are leaving for the mainland,” Mattel, my driver to Zagreb, told me. He was born and raised in Cres, an island located north of Lošinj. Family ties were important for job prospects. “If your family has a restaurant, then you stay and work.”

As Mattel and I boarded our car to a ferry and climbed the stairs to the deck, I saw the glint of the afternoon sun on the blue water. When I asked if he liked to venture out onto the mainland, he shook his head. “Why?” he asked. “Cres has everything I want.”

Sitting across from me with his arm draped across the back of the seat next to him, Mattel told me that he knew the best swimming spots where you could glide across the water virtually alone; and about the trips out to the sea, where you returned with the freshest fish you could imagine to cook at home with your friends and family. He didn’t like big crowds; he preferred peace. “Unless you like shopping,” he grinned. “Then you go to the mainland.”

As I munched on an overpriced salad at the busy Zagreb Airport, it occurred to me that Mattel might be on to something. Inconvenience was the price for community: add in clear waters, a bustling boating culture, and the luxury of silence, the Northern Adriatic islands had possibly reached the stratum closest to paradise. I considered it a gift that I was able to witness them.

Am I a Jerk Because I’m Ghosting My MAGA Family on Thanksgiving and Traveling Instead?

https://www.fodors.com/news/news/am-i-a-jerk-because-im-ghosting-my-maga-family-on-thanksgiving-and-traveling-instead

Courtesy of Fodor's Travel

Dear Eugene

With Thanksgiving just around the corner, in this month’s "Dear Eugene," we weigh in on skipping the family drama and traveling instead is the right move.

I can sense hundreds of readers nodding in collective recognition of this sentiment. Many of us are currently experiencing rifts with loved ones over politics, making the family dinner table a hostile territory. One unsubtle comment and Thanksgiving devolves into arguing and awkwardness.

Understandably, it sounds as if you’re exhausted by it all. Jetting off to some faraway place, bathed in sunshine and tranquility, would be idyllic. In fact, it’s hard to imagine a more fitting way to spend a holiday themed around gratefulness.

But before you book that ticket and set your phone to “do not disturb,” it’s worth thinking more deeply about how to handle this situation with your family. Your actions now have the potential to improve your future interactions with them, or make matters far worse.

The Problem with Ghosting

You are well within your rights to spend Thanksgiving in a way that feels enjoyable to you (i.e., not outnumbered and piled upon by your family). The only part of your plan that gives me pause is the ghosting…

Anyone who has been ghosted by someone they care about knows what a gut punch it is. The ghostee is left confused about what happened, with no recourse to set things right. And yet, despite the pain it’s known to cause, ghosting is still such a tempting option–especially for those of us with avoidant tendencies.

“It sounds like you’re avoiding having a difficult conversation with family members due to fear about how they will respond,” says psychotherapist Stella Kimbrough, LCSW. “Avoiding difficult conversations in relationships can cause anger and resentment to build up over time, eventually leading to either a big fight or deciding to end the relationship altogether.”

Maybe your goal is to go one hundred percent no-contact with your family, in which case, ghosting sends the message loud and clear! But if, in an ideal world, you’re hoping to improve the family dynamics and build peaceful, meaningful relationships with them in the future, it’s time to put on your big girl pants and communicate.

Be Clear, Firm, and Calm

This probably won’t be easy, but advocating for yourself with a clear, firm “no thank you” to the Thanksgiving invite will actually strengthen your relationships in the long run, according to Kimbrough.

One way to say “no” effectively is what’s known as the Broken Record Technique. “When someone tries to push boundaries after you’ve already said ‘no,’ the best thing to do is repeat yourself and stay firmly grounded in your goal, no matter the push-back you receive,” she explains.

Say a family member tries to guilt-trip you, saying, “you never come see us anymore” or “but you ALWAYS come for Thanksgiving,” you can use the broken record technique by responding with “I hear that you’re disappointed, and I’m just not available this year,” or “I understand that you really want me to come for Thanksgiving, but I’m going to have to skip this year,” says Kimbrough. Regardless of how much the person freaks out, you maintain the boundary, repeating yourself calmly and politely like a broken record.

Additionally, Kimbrough says, “If your gut tells you that an open discussion could lead to meaningful changes, being clear about what you need–a no political conversations rule, for example–could potentially improve your relationship. You would also need to be willing to hear about any changes they need from you. It shouldn’t be a one-way street.”

Does this sound like fun? No. But advocating for yourself will boost your self-confidence and alleviate any icky feelings you might have about ghosting relatives on Thanksgiving. And with any luck, your family will learn to respect your word and your peace.

Want to build a luxury hotel? That’ll be $2 million per key, please.

https://hotelsmag.com/news/luxury-hotels-are-more-expensive-than-ever-to-build-it-doesnt-mean-they-arent-getting-done/

by David Eisen

It’s easy to enjoy a luxury hotel. Building them is hard. According to the HVS U.S. Hotel Development Cost Survey 2025, the average cost to develop luxury hotels was recorded at more than $1 million per key, but can swell to as high as $2 million per key. It’s no surprise that this category of hotel reflected the lowest number of developments, considering the arithmetic of making luxury projects feasible, given the high project costs.  

Luigi Major, managing director, advisory of HVS Americas, uses napkin math to explain how a luxury hotel can pencil out for a developer. For a luxury hotel that runs around 65% occupancy, if it’s going to cost $1 million per room to build it, then an average daily rate of $1,000 is needed to make it work. Essentially, 1,000 times the rate.  

Data from CoStar show that luxury average daily rates have increased since their COVID lows, but $1,000 per night they are not on average. Year-to-date September 2025 shows luxury ADRs in the U.S. at $394, around $11 higher than at the same time a year ago. In Major’s estimation, luxury projects that can creep closer to that $1,000 ADR are resorts that attract leisure travelers who are more willing to pay higher rates in contrast to urban luxury hotels that typically have a higher concentration of business travelers and a rate cap. The dual-located Montage and Pendry in La Quinta, Calif., that is currently under development after being stalled due to COVID, is the type of project, Major cited, as being able to succeed on a higher ADR. 

Notable in HVS’ survey was the number of luxury developments where all-in costs exceeded $2 million per room. This has been exacerbated by higher interest rates that make financing these projects even more onerous. 

“It’s very difficult to make luxury work,” said Major, an assertion backed also by the finance community. Peter Berk, president of PMZ Realty, a New York-based firm that focuses on hotel debt and equity financing, has worked on myriad deals and financed more than $10 billion of commercial real estate over the years. In the current cycle, he is seeing limited luxury deals get done, and it goes beyond just higher interest rates and cost of construction, he said. “The labor, insurance and other operating costs just to operate a hotel at that level requires a RevPAR that does not align with those development costs. Even in major cities, such as New York or L.A., few hotels justify that type of cost, and those that are currently under construction were planned pre-pandemic and have already committed to that course. Very few new ones at that level are planned.” 

The costs involved to build luxury hotels have swelled since the COVID pandemic, as high as 45% higher, said Evan Weiss, COO and principal at asset manager LWHA. “It’s made luxury hotels that much more expensive and that much more difficult to build—even in rural and suburban areas where you have a lot of land, but the cost is exceeding a million dollars a key and, in many cases, more than that.

In order to defray some of the cost, most luxury projects now have a residential component and/or a membership club attached to the conventional hotel. “It contributes to making that $2-million-per-key cost work,” Weiss said. “That’s a very difficult number to make feasible, unless you have significant ADRs.”

At the same time, the cost of a luxury project varies by location. As HVS data show, luxury resort build outs on average are pricier than luxury hotels built in urban centers by a healthy margin. Luxury resorts are usually built in desirable destinations, including ocean side or mountain side, where land costs are expensive. This, coupled with larger rooms and more suite or villa accommodations, makes building a luxury resort at the $2-million-per-key level.

Mixed Feelings 

It doesn’t mean luxury development is not happening, especially mixed-use projects that contain residential components; just ask Marriott, which, in conjunction with Related Group and BH Group, recently announced W Pompano Beach Hotel & Residences, a co-located property that blends residential and hotel, with condominium residences and condo-hotel suites designed by Meyer Davis. Staying in Florida, Marriott opened The St. Regis Longboat Key Resort last fall, a new-build development with 168 guestrooms and 28 suites, along with 69 branded residences.  

Sixty-nine percent of Marriott’s luxury residential pipeline is co-located to a hotel.

According to a recent report put out by Savills on branded residences, there are some 740 completed branded-residential developments with another 790 expected to be delivered by 2031.   

It’s multi-use projects like these that are keeping Marriott’s luxury pipeline full, said Dana Jacobsohn, CDO of North America luxury brands and global mixed-use for Marriott International. “We have seen expanding opportunities with mixed-use developments. Many developers have found that mixed-use projects with branded residences can provide added benefits while helping to diversify their portfolios,” she said. 

In other cases, developers are adding residences to an existing hotel, like at The Ritz-Carlton, South Beach, where 30 branded residences in a standalone 15-story tower on the sand are being added. The famed Morris Lapidus-designed beachfront hotel reopened in 2020 after a multiyear, $90-million renovation following damage from Hurricane Irma. 

  

The Ritz-Carlton Residences, South Beach is a 15-story tower with 30 branded residences that is slated for completion in 2027. 

At the same time, Ritz-Carlton will soon open standalone residences atop South Station Tower in Boston, a 51-story glass spire rising behind the railroad station. Recent standalone luxury residences to open include Mandarin Oriental Residences Madrid, SLS Madrid Infantas and Banyan Tree Padilla Madrid Residences. “We’re seeing strong interest from buyers who appreciate the reliability and prestige that come with international hospitality brands,” said Richie Fernandez, in-house sales & marketing associate for Persepolis, the developer behind SLS Madrid Infantas and Banyan Tree Padilla Madrid Residences. 

Oftentimes, it’s the branded residential component that allows a luxury development to pencil out since, as Jacobsohn conceded, the financing environment “remains challenging,” especially for new-build luxury hotels and resorts, 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 luxury projects are only able to get off the ground if there is a residential component affixed because, as she noted, constructing luxury hotels, even absent land, can reach $2 million per key, exacerbated by things like tariffs. 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 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.  

Four Seasons Hotel and Private Residences Jacksonville is being developed in conjunction with Shahid Khan, owner of the Jacksonville Jaguars. 

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 have 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 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.” 

Six Senses La Sagesse Grenada opened earlier this year. 

IHG Hotels & Resorts is no stranger to luxury and is driving development through its eponymous InterContinental brand, along with the ultra-high-end Six Senses and Regent Hotels, a venerable brand IHG acquired a 51% majority stake in in 2018 and which it has the right to acquire the remaining 49% in a phased manner starting in 2026. One of its most recent openings was Regent Bali Canggu, which opened in February 2025, and includes 150 suites and villas. The opening came on the heels of the opening of Regent Santa Monica, a conversion of the former Loews Santa Monica Beach Hotel that marked the return of the Regent brand to the U.S.

The opening of Regent Bali Canggu is part of a concerted effort by IHG to nurture and grow luxury products in the Asia-Pacific region, said Leanne Harwood, SVP, managing director, luxury & lifestyle Americas for IHG. She pointed to Regent Shanghai on the Bund, one of two Regent properties in Shanghai, as testament. The bulk of the Regent portfolio is in Asia.  

IHG’s luxury and lifestyle brands, which also include the likes of Kimpton, Indigo and Vignette Collection, represent 20% of its global pipeline, nearly double what it was five years ago, and it’s an area that the company—known the world over for the iconic Holiday Inn brand—is steadfastly focused on growing. “We see ourselves as being a market leader in this segment,” Harwood said.  

While the eco-conscious and wellness-centric Six Senses, a brand which IHG acquired the management rights to in 2019, has traditionally cropped up in almost secluded resort destinations, there has been a push by IHG to push it into the light of the city. Six Senses Rome opened in 2023, the brand’s first true urban location, with further deliveries in London, Milan and Dubai through 2026.  

Harwood said that IHG isn’t unwilling to use its balance sheet to secure deals, but employing key money to chase deals is not the strategy. “We have to be very balanced in our approach and make sure that it’s not about simply bringing a deal over the finish line,” she said. “It’s one thing to throw money up front, but once the doors open, you’ve got to actually deliver.”  

A living room at SLS Madrid Infantas Residences, slated for completion next year. 

Luxury Transactions

As million-dollar-plus-per-key luxury development costs endure, transactions of luxury hotels in the U.S. are equally frothy and similarly, currently slight. 2025 started off with a bang with Henderson Park’s pickup of PGA National Resort from Brookfield for $425 million ($1.18 million per key). But 2025 has not been a year of abundant transasction, especially at the luxury level, so representative averages by location type is hard. “The velocity of luxury hotel transactions in the U.S. continues to be below the recent peak levels seen during 2021 and 2022,” said Kevin Davis, Americas CEO, JLL’s Hotels & Hospitality Group. However, he is confident that they will pick up. “We expect liquidity for luxury resorts and urban properties to improve in the months ahead, underpinned by robust debt markets, the sheer weight of capital targeting commercial real estate and the higher relative value offered by hotel assets vis-à-vis other property sectors.”

Beyond Brand 

Smaller luxury groups, having eschewed the siren call of the big brands to go at it alone, are also in the market opening hotels. Elias Barbosa has been involved in the real estate sector for more than 25 years with 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 increasing,” Barbosa said. “The quality of the experience is the most important factor for guests.” 

A villa at TROBBU Tulum in Mexico.

New may be better, but sometimes it’s cost prohibitive, 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.” 

Japan’s Mori Trust just acquired one of New York’s preemiment luxury hotels

Equinox Hotel New York opened in summer 2019 in Hudson Yards.https://hotelsmag.com/news/japans-mori-trust-just-acquired-one-of-new-yorks-preemiment-luxury-hotels/

by David Eisen

New York City was founded in 1624, but Hudson Yards, a mixed-use neighborhood on the far west side of the city that stretches from West 30th to West 34th Streets and runs between 10th and 12th Avenues, is a more recent addition.

Opened to the public in 2019, like the rest of the city, the vicinity doesn’t stay static.

One of the neighborhood’s most important additions was 35 Hudson Yards—a sprawling, 92-story skyscraper, which, like many other buildings in New York, is one of the tallest buildings in the U.S. Owned by Related Companies, whose founder, Stephen Ross, also owns the NFL’s Miami Dolphins, and Oxford Properties, the mixed-use building includes office space and retail space and more than 100 private residences on its top floors.

Floors 24 to 38 contain one of the preeeminent luxury hotels in the U.S., the 212-room Equinox Hotel, which was realized as an extension of the widely popular Equinox Fitness Clubs, which has more than 100 locations worldwide and where members pay as much as $400 per month to enjoy personalized training, best-in-class equipment, sauna and steam room and other spa-like services. E by Equinox, Equinox’s  membership costs approximately $500+ per month plus an initiation fee, and it offers ultra-luxury amenities, all-club access, and a more exclusive experience

Equinox Hotel New York offers similar, including a 5,574-square-meter Equinox Fitness Club with an exclusive “E by Equinox” area; a full-service spa; indoor and outdoor saltwater pools; and in-room services such as on-demand IV vitamin drips. Its Electric Lemon restaurant on the 24th floor maintains 4 stars on Google reviews. Rooms at the hotel are, unsurprisingly, pricey, easily reaching more than $1,000 per night depending on time of stay.

Guestrooms feature such wellness and recharge amenities as light and sound insulation and bedding made exclusively from natural materials, such as horsehair and seaweed. There are also rooms featuring the Sleep Lab, developed in collaboration with sleep scientists, that support high-quality sleep with cold water and steam showers, aromatherapy and more.

After more than five years of ownership, it was no secret that Related and Oxford were looking to offload the hotel. They’ve now accomplished it. Mori Trust, a Tokyo-based real estate company, has acquired the first 38 floors of 35 Hudson Yards, inclusive of the hotel, through it U.S. subsidiary, Mori America, for a reported $541 million. It marks Mori Trust’s 12th real estate investment in the U.S. and its third in Manhattan. Mori also has an ownership interest in 245 Park Avenue, which it aquired in 2023 from SL Green. In November 2024, Mori bought an 11% stake in One Vanderbilt from SL Green in a deal that valued that building at $4.7 billion, as reported by Commercial Observer.

“We are delighted to announce the acquisition of Equinox Hotel, a luxury lifestyle hotel, and 35 Hudson Yards, featuring high-quality office space, in Manhattan, New York, the cultural and economic center of the U.S.A.,” said Miwako Date, president and CEO of Mori Trust.

Date is the daughter of Mori Trust Chairman Akira Mori.

“Within Japan, we focus not only on owning and operating diverse office buildings but also on developing and operating hotels in collaboration with foreign luxury brands. Acquiring high-quality properties overseas, such as 35 Hudson Yards, contributes to the stability and sustainability of our asset portfolio and will drive further growth in the future,” she added.

Mori’s acquisition totals approximately 490,000 square feet of the 1.095 million-square-foot building.

Other Mori investments in the U.S. include office buildings in Boston and Washington, D.C.

In March 2024, Equinox secured approximately $1.8 billion in new capital to refinance maturing loans, as well as to fund general corporate purposes and growth including new clubs.

This week, Equinox Hotels announced its expansion into the Caribbean with Equinox Resort Anguilla Port Nimara. The development will be located at the South West End of Anguilla, within the privately owned Port Nimara area, between the Cap Juluca and Altamer estates. The resort and marina complex will include 62 rooms, 18 oceanfront villas, 18 upland villas and 35 branded residences.

DUHC&S | Strategic Hospitality Consulting & Advisory

We transform hospitality and tourism businesses through strategic solutions, operational efficiency, and comprehensive renovation. With over  40 years of experience  working with brands like Hilton, Hyatt, Sheraton, and Sonesta, we enhance asset value and profitability through:

*Business reengineering and renovation

*Operational excellence and brand standards (GSI +90%)

*Market penetration and commercial strategies

*Key partnerships and disruptive innovation

*Hotel openings and repositioning

Proven results :

✅ 54% GOP | 

✅ +200% asset valuation growth

✅ Successful projects across 6 Latin American countries

🔹 Let's connect :

📩 Email:  diurugeles@gmail.com

📱 WhatsApp: +57 3153259968

🔗 LinkedIn:  https://www.linkedin.com/in/diego-uribe-rugeles-87a50821/

📘 Facebook:  https://www.facebook.com/diego.uribe.rugeles/

🌐 Blog:  https://travel-news-duhospitality.blogspot.com

               https://viajes-noticias-duhospitality.blogspot.com

               https://viajes-duhospitality.blogspot.com

               https://travel-duhospitality.blogspot.com

🎥 YouTube:  https://www.youtube.com/@duhospitality

#DUHC&S #HospitalityConsulting #OperationalExcellence #Hotels #BusinessTransformation

Disclaimer

DUHC&S shares this information for educational and informational purposes only. The news articles reproduced here are sourced from public and recognized media outlets. We are not the original authors of this content but rather distributors of it. All credits go to the original sources cited in each article. If you are the legitimate owner of any material and wish to have it modified or removed, please contact us immediately at  diurugeles@gmail.com, and we will address your request promptly.