Wealthy Americans Shift Towards Private Vacation Properties Instead of Luxury Hotels
**Branded Residential Vacation Rentals: A Growing Trend Among Affluent Travelers**
The global market for branded residential vacation rentals is experiencing significant growth, with a projected revenue of $125 billion by 2029, according to industry analysts. This surge in demand is driven by a variety of factors, including privacy, space, and exceptional amenities.
Affluent Americans are increasingly opting for private vacation homes over luxury hotel stays, with villas offering a sense of exclusivity and privacy that caters to their needs. These villas, part of the branded residential market, are located in popular holiday destinations such as Costa Rica's Guanacaste province, where the presence of luxury resorts like the Waldorf Astoria, Ritz Carlton Reserve, and Four Seasons further enhances the appeal.
Exceptional amenities like concierge support, private chefs, housekeeping, in-villa spas, and access to exclusive outdoor adventures have become the norm in these private vacation homes. Fresh tropical fruits, high-quality coffee beans, and local dishes prepared by private chefs are just a few examples of the unique offerings that these villas provide.
The branded residential market is also attracting frequent travelers and active buyers, such as members of Exclusive Resorts, a private membership club operating a $1 billion portfolio of over 400 private residences across 75 destinations. Exclusive Resorts is expanding its reach by taking a majority stake in the Onefinestay vacation rental brand, owned by the French hotel giant Accor.
Onefinestay lists about 3,000 homes, villas, and chalets across 40 destinations, offering a variety of properties tailored for remote work and unique stays. Fontenille Collection, Iconic House, and Onefinestay are among the brands that are capitalizing on the trend for one-of-a-kind stays, possibly with themed or architectural highlights.
The market is expected to continue its rapid expansion, with several key drivers such as demographic shifts, niche markets, technology integration, flexibility, and sustainability. Millennials and Gen Z are expected to comprise about 75% of Airbnb’s traveler base by the end of 2025, emphasizing the need for tech-savvy, experience-rich, and sustainable offerings.
Brands are moving beyond mere accommodation to offer curated experiences, local immersion, and exclusive access, aligning with the demand for “travel as a lifestyle.” Eco-friendly practices and certifications are increasingly used as differentiators, especially for luxury and unique properties. To reduce reliance on third-party platforms, some brands are investing in direct booking technologies and loyalty programs.
In conclusion, the branded residential vacation rental market is in a strong growth phase, driven by technology, shifting demographics, and a demand for unique, sustainable, and experience-rich stays. Leading companies are differentiating themselves through curated experiences, sustainability initiatives, advanced technology, and professional management, positioning well to capture both luxury and niche segments as the market expands globally.
Steve Case, co-founder of AOL, has invested in Equity Estates, a real estate investing company that specializes in luxury travel properties. This investment reflects the growing trend of wealthy individuals purchasing private vacation homes as an alternative to hotel stays. Meanwhile, the luxury travel market is witnessing a surge in demand for branded residential vacation rentals, which offer a sense of exclusivity and privacy. Lifestyle-focused brands are catering to this demand by providing exceptional amenities such as concierge service, private chefs, and access to unique outdoor adventures, further heightening the appeal of these best vacation homes.
