In this edition of the Glossy+ Research Briefing, we explore what’s next for luxury brands that have dipped their toes into the hospitality industry. Many are looking beyond short-term options like pop-ups to full-time luxury residences.
Brands expand into luxury hospitality ventures
To embed their signature styles into all aspects of luxury shoppers’ lives, some prominent brands have been experimenting with attaching their names to cafés, restaurants, spas and hotels, where they can create additional touchpoints with luxury connoisseurs. According to market research and consulting firm Grand View Research, the luxury travel market is expected to grow at a compound annual growth rate of 7.6% until 2030. And, there seems to be a new branded luxury hospitality venture opening in major cities around the world every month.
“We are seeing, especially since Covid, an explosion in that experiential luxury world. Hotels, cruises, food. What’s good about that is it’s still part of the luxury industry — getting larger and with stronger assets and stronger pillars,” said Andrea Guerra, CEO of the Prada Group said in McKinsey’s State of Luxury report.
In November 2024, Louis Vuitton opened its first restaurant in the U.S. inside the luxury brand’s temporary flagship store in New York City. The cafe, dubbed Le Café Louis Vuitton, joined a growing list of Louis Vuitton restaurants and bars around the world. Earlier in the year, Louis Vuitton opened Le Bar Louis Vuitton in Taormina, Italy, on the rooftop terrace of a historic building that houses a Louis Vuitton store. Le Bar hosts pop-ups, culinary experiences and brand takeovers on the Mediterranean beach. By combining its retail location with a luxury gastronomy experience, Louis Vuitton’s strategy seems to be to increase foot traffic to its store.
Luxury brands are also attempting to lure in customers through branded luxury resorts and hotels. Versace added to its resort portfolio last year by opening its first luxury hotel property located in Asia, the Palazzo Versace Macau. The hotel’s guest rooms, restaurants, spa and pools all feature Versace’s signature opulent Milanese design style. This is the second Palazzo Versace resort the brand has opened, the first opened in Dubai in 2016.
“We love the relationship between hospitality and retail. They are so complementary. When people travel, they’re much freer,” said Tina Edmundson, president of luxury at Marriott International, in McKinsey’s report. “They’re not bogged down by all of the stuff that bogs us down at home, whether it’s the kids or the job or whatever. So they are much more open, and much more willing to explore, willing to discover and willing to spend.”
However, as the list of luxury brands investing in the hospitality industry continues to grow, some luxury brands are looking beyond restaurants, cafés and hotels to residential living spaces. According to real estate brokerage company Savills, over the past decade, branded residence projects have increased by over 160%.
Luxury Italian car manufacturer Pagani Automobili plans to open its “Pagani Residences” condominium complex in Miami in 2027. The residential project is intended to be a symbol of the Pagani brand in the U.S. Similarly, Fendi’s private residences in Crans-Montana, Switzerland are expected to open in 2026 with a similar mission to extend the brand’s market share in luxury living.
By attempting to infiltrate all aspects of a luxury client’s life — from what a person wears and eats, to where they live and vacation — luxury brands are hoping to widen their market presence and weather the storms of inevitable dry sales seasons.
