Newsletter: February 2025
As we enter February, the hospitality landscape continues to evolve, with key markets experiencing dynamic growth and new opportunities emerging worldwide. Indeed, key markets worldwide are experiencing unprecedented expansion, driven by evolving traveler preferences and new investment opportunities. At the same time, luxury fashion brands are making bold moves beyond couture, stepping into the world of hospitality with exclusive hotels, private clubs, and immersive brand experiences. This month, we delve into the rapid expansion of hospitality markets, explore how high fashion is transforming luxury stays, and take a closer look at the traditions and significance of Epiphany celebrations.
Luxury Fashion Brands Expanding into Hospitality
Luxury fashion houses are moving beyond retail, entering hospitality to offer immersive brand experiences. This allows a more comprehensive 360° multisensory luxury experience in the world of the brand. The luxury hospitality sector has seen branded residences grow by 230% in the past decade. With the global luxury hospitality market projected to reach $160 billion by 2030, brands are taking opportunities to create lifestyle driven experiences.
The Market Shift
Luxury brands are investing heavily in hospitality: LVMH acquired Belmond Hotels for $3.2 billion, integrating fashion with high-end travel. Over 40% of new luxury hotel developments involve fashion brands, underscoring this trend. Branded residences are becoming increasingly popular, with brands such as Aston Martin in Miami, Fendi in Switzerland, and Elie Saab in London developing exclusive residential spaces, a sector that is growing 12% annually. Additionally, high-end brands are introducing refined culinary experiences, such as Louis Vuitton’s expansion into restaurants and cafes, blending fashion with gastronomy. With demand for high-end lifestyle experiences growing, fashion brands will continue expanding into hospitality, offering consumers ways to live within their brand universe.
Latest Opening
On November 15, 2024, Louis Vuitton opened a temporary space Le Café Vuitton just meters from its New York flagship. The Parisian-inspired space features a dining room, a 70-seat bar and a reading area with a selection of curated books. Offering a refined ‘luxury snacking’ menu, the project further extends the brand’s presence into hospitality. It also marks the beginning of a new Louis Vuitton culinary community.
EHL Insights, 2024; Altavia Watch, 2024; Journey Travel Insights, 2024; Journal du Luxe, 2024; TimeOut, 2024
Word of the Month
Epiphany /ɪˈpɪfəni/
Each year, Paris’ boulangeries fill their counters with the one and only galette des rois. What did they have in store this January?
Nina Métayer created an hommage to Notre-Dame, Pépite Boulangerie offered a black sesame galette, Le Bristol offered once again their Signature galette with citrus and honey, and Paris’ oldest bakery collaborated with À la Mère de Famille to create a classic yet sophisticated sweet treat.
With plenty of choices, we wonder, which one was your favorite?
Top Picks - Emerging Countries Shaping Tourism
Rwanda’s tourism sector is flourishing, with revenue rising 36%, from $445M in 2022 to $620M in 2023, driven by 1.4M visitors—124% of pre-pandemic levels. Known for eco-tourism like mountain gorilla trekking and luxury brands such as One&Only, Rwanda attracts affluent travelers. The MICE sector contributed $95M in 2023 with 160 events and 65,000 delegates. In 2024, Rwanda leveraged sports partnerships with PSG, Arsenal, and Bayern Munich through "Visit Rwanda" branding and plans to host a Formula 1 Grand Prix in Gahanga, solidifying its global tourism profile.
NISR, 2024; Rej, 2023; ReportLinker, 2024
Albania’s hospitality sector is booming, with 11.7M foreign visitors in 2024—a 15.2% increase—generating €3.8B in tourism revenue in nine months. Targeting Western Europe, Asia, and the Americas, Albania has attracted investments like a €1.4B luxury resort on Sazan Island by Atlantic Incubation Partners LLC. Government tax incentives and infrastructure development are driving growth, while a focus on sustainable tourism balances economic progress with environmental conservation, solidifying Albania as a premier travel destination.
AlbanianTimes, 2025; Scan, 2025
Saudi Arabia’s tourism sector surged in 2024, welcoming 60M tourists in the first half—a 10% increase from 2023. In March, the Tourism Investment Enabler Program (TIEP) launched, aiming to attract $11B in private investments by offering access to government land, easing development processes, and lowering entry barriers. TIEP is set to create 42,000 hotel rooms and 120,000 jobs, aligning with Vision 2030. In September, Saudi Arabia also removed fees for commercial activity licenses in hotels and resorts, further boosting investment. These initiatives highlight the Kingdom's ambition to become a global tourism hub.
Argaam, 2024; PR Newswire, 2024; Reuters, 2024
This month, the Junior IMHI team came together for a lively evening of discussions, idea exchanges, and shared moments of celebration. As we reflected on our experiences so far, we toasted to our achievements and prepared for the exciting journey ahead in 2025. Here’s to more collaboration and success in the months to come!
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