Dive Brief:
- Merchant bank BDT & MSD intends to invest “significant capital” to acquire and develop luxury hotel and residential assets branded and managed by Auberge Resorts Collection, according to the collection’s parent company, The Friedkin Group, a Texas-based consortium of automotive, hospitality, entertainment and sports companies.
- Upon entering into a strategic partnership with The Friedkin Group, BDT & MSD Partners will make a minority investment in Auberge Resorts Collection, The Friedkin Group announced last week. Auberge Resorts Collection manages a portfolio of 27 luxury hotels, resorts, residences and private clubs across the world.
- The investment will help grow Auberge Resorts Collection, which has recently expanded in top U.S. markets like Dallas-Fort Worth. The partnership comes as the luxury hotel segment sees increased demand, with travelers seeking more experience-based trips.
Dive Insight:
BDT & MSD's investment will “accelerate further growth” of Auberge Resorts Collection, Coburn Packard, partner and head of real estate at the merchant bank, said in a statement.
“Auberge is a world-class manager of distinctive luxury hotel properties, with an exceptional track record of delivering curated guest experiences in the world's leading hospitality markets,” he said.
The investment will support Auberge Resorts Collection’s “continued strategic growth in the Americas, Europe and beyond,” The Friedkin Group detailed in a release. Growth will be particularly focused on “gateway urban markets and high-profile experiential destinations,” the company said.
Auberge Resorts Collection has more than a dozen hotels in its development pipeline, including two hotels set to open in South Carolina and Florence, Italy, this year, The Friedkin Group said. Most recently in December, Auberge opened Bowie House in Fort Worth, a market seeing an uptick in luxury hotel development.
BDT & MSD is the latest player to bet on the luxury segment, which is seeing increased demand as travelers seek more experience-based trips. The segment is expected to see continued growth in the coming years, with the size of the global luxury travel market set to reach $440.4 billion by 2030, according to Coherent Market Insights.
