The wealthy are increasingly ditching vacation homes for lavish resorts

These guests can be lucrative for the resorts too

TRD NATIONAL /
Feb.February 16, 2019 01:00 PM

(Credit: iStock)

Wealthy jet-setters are increasingly trading vacation homes for pricey resort stays.

In the winter version of “summering” abroad, luxury travelers, especially among retirees, are opting for long-term stays are resorts instead of being tied down to one property, Bloomberg reported. The setup offers an array for perks for guests — and can also be a big moneymaker for hotels with nightly rates start at $200 and can rise to $700.

For example, Upper East Siders Adelle and Robert Rathe spent about about 90 consecutive nights at Belmond La Samanna, a luxury resort on St. Martin. Based on the hotel’s starting rate of $545 per night — the couple had a five-figure tab not including food, drinks or activities. Perks at these kinds of resorts can include free daily housekeeping and a full staff to call on.

“Those who choose luxury resorts over real estate purchases such as a condo or home do so not only for the five-star pampering and attentive service, but also the flexibility of choice,” Tara Hyland, a Virtuoso-affiliated travel adviser, told Bloomberg. “Of course, spas, yoga classes, fitness programs, water sports, golf, tennis, and restaurants make resorts even more attractive.”

Snowbirds also give resorts a leg up for forecasting revenue, the report said. Longer stays make it easier to predict spending habits and increase the likelihood that guests will spend on more services. Seasonal guests are also a good source of referrals for these properties.

On the other hand, costs for vacation homes can add up quickly. Owners can end up spending huge sums on down payments, renovations, insurance in hurricane-prone areas and other costs.

“There’s no way it makes sense to own an apartment unless you’re spending a significant amount of time there,” said Miami-based Merrill Lynch financial advisor Patrick Dwyer about South Florida. “But even then, you’re still losing. The myth that you’re going to make money on your property is just that. Interest rates are going up, which makes the opportunity for your capital investment in real estate more challenging. Being able to go from resort A to resort B is better than locking into a fixed cost as you get older.” [Bloomberg] — Meenal Vamburkar


Related Articles

arrow_forward_ios
Porch CEO Matt Ehrlichman (iStock; Porch)

Porch CEO: SPAC deal gives us $200M and a clean slate

Porch CEO: SPAC deal gives us $200M and a clean slate
Toni Morrison and her former Tribeca home (Getty, BHS)

Toni Morrison’s Tribeca loft hits the market

Toni Morrison’s Tribeca loft hits the market
198 Washington Park in Fort Greene (Photos via Compass)

Fort Greene townhouse, 30 feet wide, led Brooklyn luxury sales last week

Fort Greene townhouse, 30 feet wide, led Brooklyn luxury sales last week
24 Leonard Street Unit 2 and 443 Greenwich Street Unit 2G (Douglas Elliman, Compass, Google Maps)

‘Incredibly quick’: $19M Manhattan condo deal done in a weekend

‘Incredibly quick’: $19M Manhattan condo deal done in a weekend
The National Association of Home Builders Housing Market Index reached a record high for the second consecutive month in October 2020. (iStock)

Building up: Homebuilder confidence hits new highs

Building up: Homebuilder confidence hits new highs
Guo Wengui and the Sherry-Netherland penthouse at 781 Fifth Avenue (Photos via Wikipedia Commons; Getty Images and Douglas Elliman)

Ensconced in the penthouse and entangled in lawsuits

Ensconced in the penthouse and entangled in lawsuits
Kaufmann Desert House (Courtesy Coastal Luxury Living)

Neutra-designed “crown jewel” of Palm Springs lists for $25M

Neutra-designed “crown jewel” of Palm Springs lists for $25M
Gov. Andrew Cuomo (Getty, iStock)

New York lost $755M in real estate tax revenue this year: REBNY

New York lost $755M in real estate tax revenue this year: REBNY
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...