Global geopolitical turbulence is reshaping the expansion strategies of the luxury hospitality industry, while the sector is increasingly diversifying investments beyond the United States. “In recent years, hotel groups have been betting heavily on the U.S., since it is the largest source market for luxury tourism,” said Simon Mayle, Latin America director at International Luxury Travel Market (ILTM). “But with geopolitical shocks, especially last year, they became nervous and decided to cultivate new markets.”
According to Mayle, hotel groups have “turned toward Latin America, eying wealth creation and the new generation of affluent consumers in the region, which is growing faster than in mature markets.” The edition of ILTM held two weeks ago at São Paulo’s Bienal Pavilion was the largest ever organized, with a 20% increase in participants compared with 2025. The event gathered 550 exhibitors from around the world—from South Korea to Benin—including hotels, cruise operators, and tourism destinations, with 25% attending for the first time. All sought to attract an audience of 550 travel agents from 85 cities across 11 Latin American countries.
Elite travelers from Latin America, especially Brazilians, rely more heavily on travel agencies for personalized service than travelers from other nationalities. As a result, the event has become strategically important for the hospitality industry.
“Brazilians have a very close relationship with travel agents. They consume concierge services, spas, enjoy visiting trendy restaurants, going shopping, having drinks before dinner, and again afterward. Like other Latin Americans, they are the type of guests hotels want to attract,” Mayle said.
Among exhibitors at ILTM, Preferred Hotels & Resorts, an association representing 625 independent luxury hotels worldwide, reported that revenue from bookings made by Brazilian travelers abroad rose 43% in the first four months of the year compared with the same period in 2025, especially for destinations such as Italy, Spain, and Portugal, where it has more than 100 member properties. In 2025, the increase was 15%.
Domestic demand also increased sharply at the five Brazilian hotels that are part of the association, including Hotel Unique and Pulso Hotel in São Paulo, Fera Palace Hotel, NÓR Hotel, and Paru Boutique Hotel, with sales rising 85% in the first four months of the year.
At ILTM, the group announced the addition of three more properties to its portfolio: Nannai Muro Alto, Nannai Noronha, and Duke Beach Hotel Maresias. “As Brazil is currently in fashion, many hotels have been seeking Preferred to strengthen their global positioning in the luxury segment,” said Simone Mariote, executive vice president for South America.
Over the past three years, spending by Latin American luxury travelers has risen 18%, according to a survey by Virtuoso, a global network of luxury travel agencies. “It is possible that conflicts may slightly reduce Latin Americans’ spending this year, and that growth will come closer to 15%, but even so, it remains an important result,” said Angeles Yugdar, Virtuoso’s Latin America director. “There may be a reconfiguration of preferred destinations, but this audience will continue traveling, seeking personalization, authenticity, and wellness.”
Switzerland’s tourism board, for example, recorded rising numbers of travelers from the region, with Brazilian overnight stays in Alpine hotels increasing 6.6%, more than double the global average of 2.6% last year. According to Virtuoso’s survey, Japan is the preferred destination this year, both for families and solo travelers, surpassing Italy for the first time. In 2025, 110,000 Brazilians traveled to Japan, with a significant share belonging to the luxury segment.
Hotels operated under the Bvlgari Hotels & Resorts brand—a joint venture between Marriott International and Italian luxury label Bvlgari, owned by LVMH—strengthened their presence at ILTM, with representatives from their hotels in Tokyo, Shanghai, and Beijing. In 2025, after the promotion of the Bvlgari Hotel Roma at the event, Brazilian travelers became the third-largest source of reservations.
“We need to be closer to the Latin American market and especially Brazil. Many Brazilian families stayed at the Bvlgari in Tokyo last year, for example,” said Francesca Stancanelli, communications director for Bvlgari Hotels. The brand also expanded investments in the region by announcing its first development in the Bahamas, scheduled for 2029. Altogether, the group plans five openings by 2030.
According to consultancy McKinsey & Company, luxury tourism is growing at a compound annual rate of about 6%, outperforming the broader travel industry by two percentage points. A report by Grand View Research estimated global luxury travel revenue at $1.59 trillion in 2025. Revenue is projected to reach $1.7 trillion this year, with annual growth of 8.5%, which would take the market to $3.04 trillion by 2033. In revenue terms, Latin America accounted for 8.4% of the global luxury hotel market last year.
Luxury travelers aged between 41 and 60 accounted for 42.8% of industry revenue last year. The same Grand View report forecasts that younger consumers between 21 and 30 will gain increasing importance, with annual growth of 9.3% over the next seven years.
At a time when the personal luxury goods industry has lost 20 million consumers, according to a survey by Bain & Company, the hospitality sector is expanding its reach. “Luxury today is made up of unforgettable experiences that leave a mark on people’s lives. This transformation already started in 2010, but accelerated after the pandemic. More and more people want to disconnect, be close to nature, experience a new culture, or enjoy gastronomy that is very different from their own,” Mayle said.
To succeed, international hotel groups need to decode some of the Latin American market’s particularities, such as family and multigenerational travel, identified by Virtuoso as major regional trends. “In Latin America and Brazil, this is extremely strong. You will see a grandfather walk into a travel agency and book ten rooms for children, sons-in-law, daughters-in-law, and grandchildren,” Yugdar said. “The challenge is making hotels understand that those fifteen guests, for example, are not a group, but a family that wants to experience all the personalized offerings.”
By Angela Klinke — São Paulo
