Arizona Biltmore find buyers. A standout transaction in 2024 was Blackstone’ s sale of the iconic Arizona Biltmore to Henderson Park for $ 700 million-plus, translating to more than $ 1 million per key. This deal underscored Blackstone’ s strategy of acquiring, repositioning and enhancing properties through significant capital investment, ultimately achieving premium exit valuations.
In the first half of 2025, the most notable transaction in the spa resort segment was the acquisition of the JW Marriott Desert Ridge Resort & Spa in Phoenix. The property changed hands for $ 865 million, setting a new benchmark for spa-oriented resort sales this year. This transaction highlights the enduring appeal of luxury wellness destinations, particularly among investors seeking stable, long-term returns.
The sustained interest in spa-centric hotels— especially those at the upper end of the market— reflects the resilience of the luxury travel segment. Over the past several years, a clear bifurcation has emerged between luxury and midscale travelers. While luxury hotels have yet to fully recover pre-pandemic occupancy levels, they have successfully pushed average daily rates( ADRs) to
record highs. This pricing power has enabled them to focus on profitability, even as they sold fewer rooms than in 2019.
Part of the allure of resort hotels lies in their ability to serve multiple demand segments. These properties often cater to various guest types, including corporate retreat groups, individual leisure travelers, and multi-generational family getaways. Their broad appeal and amenity-rich environments make them attractive investments, particularly in a market where experiential travel continues to gain momentum.
Outlook: Investment activity to remain strong Looking ahead to the remainder of 2025 and 2026, industry analysts expect continued acquisition activity in the high-end resort space. Global investment funds and high-net-worth individuals— often investing through their family offices— will likely remain active buyers. Their focus will be on capitalizing on sustained demand for luxury accommodations offering spa and wellness experiences, which are increasingly viewed as essential components of modern hospitality. n
JAN D. FREITAG is the national director, hospitality analytics, for the CoStar Group. A sought-after public speaker, Freitag comments on the trends that shape the U. S. hotel industry and is frequently quoted in trade publications and the general news media. He is a trusted source of timely insights for investors, owners and operators. He holds a bachelor’ s degree, with distinction, from the School of Hotel Administration, Cornell University, and received his Executive MBA, with honors, from Vanderbilt University.
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