Dive Brief:

• Resort and retreat brand Canyon Ranch will receive a $150 million investment for expansion into new “major urban markets” through a new strategic growth partnership with experiential focused real estate investment trust VICI Properties, Canyon Ranch announced Thursday. 
• The Canyon Ranch–VICI Growth Partnership will add destination resort locations and wellness clubs to several Texas markets, including Fort Worth, Houston and Austin, and expand Canyon Ranch's digital offerings. 
• Canyon Ranch plans to open a new resort property in Austin in 2025, along with two membership-only wellness clubs in Fort Worth and Houston this fall and next summer, respectively. Canyon Ranch joins other investors and developers entering the Texas market looking to capitalize on heightened traveler demand. 

Dive Insight:

The Canyon Ranch Austin development, designed by Lake Flato Architects, will be located on a Texas Hill Country ranch along Lake Travis. Additional details of the project are undisclosed, but it will likely feature similar amenities to the brand’s other resorts, including personalized wellness offerings, a spa and on-site dining. 

The two Canyon Ranch Wellness Clubs opening in Fort Worth and Houston are slated to include state-of-the-art fitness and spa facilities, lounges and coworking spaces; the clubs will also host lectures and events. 

Canyon Ranch expands into Texas as leisure demand shifts, with travelers increasingly focused on wellness and retreat offerings as well as experience-based accommodations. 

“We believe wellness is one of the most powerful trends of our time, and Canyon Ranch is the global brand best positioned for capitalizing on the growing demand for wellness and life enhancement around the world,” VICI Properties CEO Edward Pitoniak said in a statement. 

VICI, which owns dozens of major resorts including The Venetian in Las Vegas, first invested in the Canyon Ranch Austin resort in October. The trust committed $200 million to the project. 

While Austin is on pace for a record-setting year for tourism, Fort Worth is America’s fastest-growing city, with a $2.3 billion development pipeline. 

Accordingly, hotel companies and developers have been drawn to the state. Crescent Real Estate is opening the first luxury hotel in Fort Worth’s Cultural District, Hyatt regency opened two hotels in the Houston area and Driftwood Capital acquired and will renovate the 299-room Hilton Dallas/Plano Granite Park. 

Additionally in San Antonio, Ryman Hospitality Properties Inc. entered a definitive agreement to acquire the JW Marriott San Antonio Hill Country Resort & Spa for $800 million, and IHG Hotels & Resorts began construction on the InterContinental San Antonio hotel, situated along the city’s River Walk.