The Viceroy Hotels & Resorts brand had not received a lot of attention in the past 10 years. But since the principals of Highgate took ownership of the luxury lifestyle brand in early 2023 that has been changing and culminated in a brand relaunch announcement on Wednesday, with a renewed focus on experiential storytelling and, in the months ahead, innovation across food and beverage and wellness.
But it goes deeper than that for the luxury lifestyle brand. With Highgate's considerable firepower now behind it, Viceroy president of development Mark Kaiser said a renewed push on the development side is just getting rolling. While he has been working with outside developers to buy in to the Viceroy story, he expects Highgate to acquire and convert more assets for the brand.
"Highgate intends to be one of the largest owners of Viceroy hotels in the U.S. and Europe," Kaiser said. "The principals wanted to buy this brand because it gives them an opportunity to invest into luxury branded hotels that they could operate."
Kaiser added that the Highgate principals bought the company 18 months ago and spent the first year putting the right people and the right systems into place, spending a significant amount of time and money on the relaunch, which will continue to roll out.
"Now is the time for the growth to start," he said. "Now's the time for Highgate to start investing into the brand. It couldn't tell partners that it was time to invest until this work had been done. And now we have a number of things teed up that we'll be able to announce from the Highgate side, as well, from the pure third-party management side."
Residences and hotels in the pipeline
Kaiser said Viceroy has abundant residential opportunities, which are easier to capitalize and get open in today's challenging marketplace. There are four residential deals in Florida and one about to be announced in Mexico. Kaiser said Viceroy is very active in the Middle East with projects under development in Dubai and Abu Dhabi.
On the hotel side, Kaiser said Viceroy signed a deal earlier this year and will sign two more in the U.S by the end of this year.
In addition, Highgate already has ownership in a number of properties it intends to convert to Viceroys. "A lot of those need to be recapitalized as part of the conversion. They have partners who invested five, six years ago. They're looking more for an exit, and they can re-ramp under a new brand."
With the Highgate name behind him, Kaiser added that he has having different conversations with third-party owners who had a lot of questions about the brand's ability to succeed in markets like Portugal, where Highgate bought a 20-plus resort portfolio about 18 months ago.
"We're the largest owner, largest operator in the country," Kaiser continued. "So, when I have a conversation with potential owners in Portugal, it immediately resonates with them that it's a different playing field than a similarly interesting brand coming from the U.S. into the market."
From a performance perspective, Kaiser said with the exception of a tough market in Santa Monica, California, momentum continues across the portfolio. Looking ahead, he said the luxury consumer continues to spend and 2025 is looking like another strong year.
Currently, with nine hotels open (four with residences), the Viceroy brand refresh will include new visual branding across all destinations and revamped digital platforms with a focus on each property's location. The brand is also unveiling a collection of new logos and custom emblems, each serving as a visual representation of the property's culture, elements, and expression -- ranging from the mythological Mayan Tree of Life and Washington D.C.'s obelisk to the landscapes of Saint Lucia.
The relaunch will also introduce new hotels and residences worldwide, including the 141-room Viceroy at Ombria Algarve, which opened on Oct. 1 in Portugal.
Guest experiences at its Algarve property include a Honey-Making Journey, led by a local beekeeping family in the Serra do Caldeirão mountains, where guests can participate in a guided hive-to-table beekeeping experience, learn about the inner workings of hives and the art of beekeeping.
Newly curated experiences will be a focal point for properties across the portfolio, while wellness programming will offer treatments designed to deepen connection to the local culture and surroundings. The new program will also feature 'local legends' tours, curated by prominent area figures, which will provide insider-access to an exclusive curation of cultural destinations.
"We think we can really make our mark by having the best experiences, and really using our hotels as a guide to the destination as opposed to to the destination itself," Kaiser said. "I think it's very timely to be talking about experiences because that's what the luxury traveler wants. What we found is that we just don't believe anybody's doing it that well."
Source: Hotel Investment Today