Investing in holiday resorts can be a lucrative and rewarding venture — but it also comes with complexity, high capital demands, and regional challenges. Whether you're looking to buy, develop, or reposition a resort, here’s a comprehensive guide to help you get started.
Investing in Holiday Resorts
Types of Resort Investments
A. Buy and Operate
- Acquire an existing resort and run it for income
- Ideal if it’s underperforming and you can reposition it
B. Build or Develop
- Buy land and develop from scratch (or heavily renovate)
- High risk, high reward
C. Franchise/Brand Partnership
- Operate under a well-known brand (e.g., Hilton, Marriott)
- Leverage their loyalty programs and operational support
D. Passive Investment
- Invest through REITs, funds, or as a limited partner in a resort development
- Hands-off, lower involvement
Why Invest in Resorts?
Advantages
- High income potential (especially in peak seasons)
- Diversified revenue: room rates, food & beverage, events, activities
- Capital appreciation (especially in emerging destinations)
- Tax benefits in some jurisdictions (tourism incentives)
Risks
- High operating costs
- Seasonality and weather reliance
- Global events (like pandemics, political instability)
- Complex management (hospitality + real estate + HR)
Types of Resorts To Invest In
1. Beach Resorts
- Location: Coastal areas (Caribbean, Bali, Maldives, etc.)
- Features: Ocean views, beach access, water sports, seafood dining
- Best For: Relaxation, honeymoons, water lovers, families
- Examples: Sandals, Club Med, Four Seasons Bora Bora
2. Mountain or Ski Resorts
- Location: Alpine or high-altitude destinations (Swiss Alps, Aspen, Whistler)
- Features: Ski-in/ski-out access, lodges, fireplaces, après-ski
- Best For: Winter sports lovers, cozy retreats, nature
- Examples: Vail Resorts, Zermatt Resort, Club Med Val Thorens
3. All-Inclusive Resorts
- Location: Worldwide (especially Mexico, Caribbean)
- Features: Meals, drinks, activities, and entertainment included
- Best For: Hassle-free travel, families, budget-conscious luxury
- Examples: Secrets Resorts, Iberostar, Riu, Club Med
4. Eco-Resorts / Sustainable Resorts
- Location: Nature-based settings (Costa Rica, Bali, Patagonia)
- Features: Solar power, sustainable practices, organic food, eco-tours
- Best For: Eco-conscious travelers, adventurers, wellness guests
- Examples: Nayara Springs (Costa Rica), Six Senses, Soneva Fushi
5. Luxury Resorts
- Location: Exclusive destinations globally
- Features: Private butlers, fine dining, designer interiors, high privacy
- Best For: High-net-worth individuals, honeymoons, celebrities
- Examples: Aman Resorts, Four Seasons, Ritz-Carlton Reserve
6. Wellness & Spa Resorts
- Location: Serene, remote areas (Thailand, Arizona, Swiss Alps)
- Features: Yoga, meditation, detox programs, healthy cuisine, full spa
- Best For: Burnout recovery, mental reset, health-focused trips
- Examples: SHA Wellness Clinic, Ananda in the Himalayas, Canyon Ranch
7. Family Resorts
- Location: Kid-friendly destinations (Orlando, Cancun, Hawaii)
- Features: Waterparks, kids’ clubs, family rooms, babysitting services
- Best For: Families with young children or teens
- Examples: Disney Resorts, Beaches Resorts, Nickelodeon Hotels
8. Adults-Only Resorts
- Location: Caribbean, Mexico, Southeast Asia
- Features: No children allowed, romantic focus, quiet ambiance
- Best For: Couples, honeymoons, solo travelers wanting tranquility
- Examples: Secrets Resorts, The House Barbados, Excellence Resorts
9. Boutique or Design Resorts
- Location: Urban and remote, often niche destinations
- Features: Unique design, limited rooms, personalized service
- Best For: Style-focused travelers, couples, solo travelers
- Examples: Alila Hotels, 1 Hotels, The Siam Bangkok
10. Golf & Sports Resorts
- Location: Near golf courses or sports complexes
- Features: PGA-level courses, tennis courts, sports academies
- Best For: Sports enthusiasts, golf groups, corporate retreats
- Examples: Pebble Beach, Bandon Dunes, La Quinta Resort
11. Cruise Resorts (Floating Resorts)
- Location: Ocean-going or river cruises
- Features: Everything onboard—meals, entertainment, excursions
- Best For: Multidestination travel, luxury at sea
- Examples: Viking Cruises, Royal Caribbean, Seabourn
12. Cultural or Heritage Resorts
- Location: Historic regions (Italy, India, Japan)
- Features: Cultural experiences, local food, historic architecture
- Best For: Travelers seeking immersion and authenticity
- Examples: Taj Lake Palace, Paradores of Spain, Ryokans in Japan
Top Destinations for Resort Investment
- Southeast Asia (Bali, Vietnam, Philippines). Low labor costs, booming tourism, lifestyle appeal.
- Southern Europe (Portugal, Greece, Croatia). Strong tourism rebound, EU stability, low property tax
- Caribbean & Mexico. High occupancy rates, all-inclusives booming, tax incentives
- East Africa (Zanzibar, Kenya coast). Untapped, eco-resort potential
- South America (Colombia, Brazil). Growth market, diverse ecosystems
Key Things to Consider Before Investing
Market & Location:
- Is it a year-round or seasonal destination?
- Who is your target guest? (Families? Digital nomads? Luxury travelers?)
- Accessibility (airports, roads, infrastructure)?
Financials:
- What’s the ADR (Average Daily Rate) and occupancy in the area?
- Can you offer multiple revenue streams (spa, F&B, excursions)?
- What are local taxes, regulations, or foreign ownership limits?
Operations:
- Will you hire a GM or manage it yourself?
- What PMS (Property Management System) or tech stack will you use?
- Do you need a hospitality partner or brand?
Popular Business Models
A. All-Inclusive
- Higher upfront costs, but consistent revenue per guest
- Appeals to families and international travelers
B. Boutique or Lifestyle Resort
- Focus on design, experience, niche (wellness, eco, cultural)
- Lower room count, higher price per night
C. Branded Resort
- Franchise fees but better marketing, reservations, and trust
- Marriott, Hilton, Accor, Banyan Tree, etc.
D. Mixed-Use Resort
- Combine hotel + vacation homes + timeshare + retail
- Diversifies income and attracts different investors
Financial Metrics to Track
- Occupancy Rate
- Average Daily Rate (ADR)
- RevPAR (Revenue Per Available Room)
- Gross Operating Profit (GOP)
- Cap Rate and ROI
- Cost per Key (how much it costs per room built or bought)
Strategies to Maximize ROI
- Add spa, F&B, or event space as profit centers
- Host destination weddings or retreats
- Use dynamic pricing and direct booking engines
- Invest in guest experience design (luxury touches, personalization)
- Implement sustainable practices to appeal to eco-conscious travelers
Need help to start, grow and scale 1 or 100+ properties? Contact us.