Why resorts are the new El Dorado of real estate investment

As the weekend approaches, at Radama SA. we are already picturing ourselves by the sea. Or perhaps in the mountains. Or even in the heart of the desert. In truth, the destination hardly matters: resorts—in all their forms—are now emerging as an essential segment for institutional investors.

Not so long ago, resorts were seen as a niche investment, or even a sideline within portfolios. That era is over. What was once a “side play” has become a genuine core strategy. Major international funds are now betting on the resilience of leisure demand, drawn by solid cash flows and long-term value.

While urban hotels took time to regain their momentum after the pandemic, resorts rebounded quickly. In search of nature, space, and quality family time, travelers flocked massively to these destinations.

This momentum has driven a transformation of the sector. Resorts are reinventing themselves through brand repositioning and targeted turnaround operations. Long-standing players such as Club Med are recording record demand for their all-inclusive offerings. The luxury segment, meanwhile, is redefining the codes: some groups are extending their offerings to unexpected destinations such as Lapland or the Saudi deserts, to appeal to a new generation of travelers seeking adventure… without compromising on comfort. Innovation, particularly in dining and experiences, is becoming a differentiating lever.

Today, resorts are no longer a secondary bet—they are becoming “core” assets of the real estate portfolio. There is still significant room for growth, but the real winners will be those who know how to bet on the guest experience, innovative partnerships, and a resolutely creative vision.

Permanent capital is not yet the majority in this segment, but it is getting closer. At Radama SA, we are watching this trend closely. The time to act wisely is now.