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The Rise of Eco-Luxury Glamping to Institutional Capital Markets

By: William Beilharz

In 2019 on a panel at the International Glamping Summit, I spoke about the future of the eco-tourism markets and how big hospitality houses were going to start buying up smaller boutique brands. IHG’s acquisition of Six Senses for $300 million was just the beginning of this trend. 

In 2020 due to the pandemic, outdoor adventure travel and alternative lodging gained another influx of interest when downtown hotels in major cities saw all-time low occupancies due to social distancing protocols while boutique luxury resorts in nature saw some of the highest occupancy. 

Some of the market trends we saw were: 

• Regular hospitality market slow to adapt and recover, while Anura’s partners thrived
• Trend from 5-Star high touch to alternative accommodations, experience, and low-touch
• Preferences for near-home destinations where flying is not necessary
• Average days booked in advance decreased, Anura’s partners dynamic marketing and pricing avoid occupancy dips.
• 85% of travelers using social media to determine destination; Anura partners have high photogenic offerings

The real question everyone keeps asking me is whether the Glamping and Eco-Luxury Resort landscape will continue or whether it’s just a trend. I believe it is here to stay, and although there will be many busts in this boom into the Glamping space, we will see industry leaders emerging in the next 2-5 years as capital markets meet the consumer demand. 

So what are the facts supporting this?

1. We see institutional capital players like SUMMIT HOTEL REIT joining the space. In 2022 they acquired a majority position in a boutique hotel property Onera, developed by Artistree Home. Their purchase, less than 9 months after opening, was for 2x the cost of construction. The REIT paid $5.2 million for the stake and a 90 percent share of a 6.4-acre adjacent parcel, where it plans to expand the resort, according to financial disclosure filings
2. We see the once-burning man concept glamping brand, Habitas, raising $400M for multi-site expansion throughout Saudi Arabia.
3. Aman announced it is launching a more affordable brand into the space called Janu with several openings in 2024, like Tokyo. Roland Fasel, the Chief Operating Officer of Aman Resorts, said to Conde Naste, “We saw that there was no one filling that space where experience, mindfulness, and an edgy approach to the local tastes and cultures existed”.

These all represent a significant step in the maturation of the alternative accommodation (Glamping) market to the institutional level.

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