Independent luxury hotels are experiencing a sharp upswing in global demand, as affluent travellers increasingly turn away from big chains in favour of more immersive, authentic experiences, according to Leading Hotels of the World (LHW).
Craig Adamson, Managing Director APAC (excl China) says the nearly century-old collection of independent luxury properties is seeing a clear shift in traveller expectations – and is expanding its portfolio and trade partnerships accordingly.
“There’s a bit of a trend toward authentic, family-owned independents,” Adamson told LATTE in a recent conversation. “And that’s the DNA of our brand.”
While the group has long focused on individuality, the broader industry is now catching up. “Post COVID, there’s really been a trend towards independents,” he said. “The chain brands are developing independent arms where they can accommodate independent hotels. But Leading was created in 1928, so this is not new to us.”
LHW now represents approximately 420 hotels worldwide. It differs from other major brands by choosing not to own or operate hotels. “We operate independent hotels that wants to stay independent. They’re usually family owned – some of our hoteliers are seventh generation hoteliers,” Adamson explained. “This year, we’ll add about 40 hotels to the collection.”
Profitability remains a challenge for independents, but LHW supports commercial viability through marketing, distribution and strategic partnerships. “They want to make sure that they stay independent, but commercially, it’s hard to make that decision,” he said. “We help facilitate their commercial viability and profitability.”
While there is one LHW hotel currently in Australia, Jackalope in Victoria, there is interest from local hoteliers in joining the network. “We get approached by hotels in Australia from time to time. Quality is our first and foremost criteria,” Adamson explained.
Nonetheless, Australia is proving to be a strong source of travellers. “We’re growing at about 20% overall,” he shared. “Now we’re just seeing continued growth from travellers who just want to go to Europe.”
To keep driving this demand, LHW is investing heavily in the trade. “Travel agents created or supported the creation of Leading and now our business is growing at great rates from travel agencies,” Adamson said
“We’re currently building a new website for travel advisors, building an enhanced loyalty program. We’re super excited about all of the work we’re doing around that.”
