Corporate Buyouts Are on the Rise at Boutique Properties

For a long time, hotel buyouts belonged to the realm of conferences. But the popularity of boutique hotels, combined with pandemic-fueled demand for privacy and control, has led to an uptick in small-group takeovers. In the leisure sector, buyouts typically involve destination weddings and reunions. As for business travelers? Goodbye, room blocks; hello, retreat buyouts.

“Requests for full property buyouts are trending upward post-Covid,” says Mia Giobbi Thomas, vice president of sales and marketing at Foley Entertainment Group, whose portfolio includes the Farmhouse Inn in California’s Sonoma County. In addition to reinforcing team dynamics with pizza-making sessions, the staff at Farmhouse Inn arrange off-property outings such as hiking or biking through the vineyards.

King deluxe fireplace sitting area at Farmhouse Inn, Forestville, California / Photo: Courtesy of Farmhouse Inn

In the last two years, Alexandra Farrington, a luxury travel advisor at Acera Travel, has recorded a 35-percent increase in hotel buyouts for corporate retreats. “These buyouts have evolved into the new boardrooms for forward-thinking organizations, mirroring the leisure sector’s demand for privacy and controlled environments,” she says.

Buyouts are a natural extension of “bleisure,” the trend of combining business travel with leisure. When corporate groups take over, beach shacks become boardrooms. Coworkers become hiking buddies. Instead of a 9-to-5 meeting schedule, the entire day can incorporate business and leisure.

Take Hotel June Malibu, Proper Hospitality’s reinvention of Malibu Riviera, a coastal motel that once hosted the likes of Bob Dylan. Drenched in creative history, the property’s 13 bungalow-style rooms, alfresco dining spots and pool deck offer an ideal retreat for executives needing a reboot away from traffic-choked Los Angeles or frenetic Silicon Valley.

Hotel June Malibu, California / Photo: Courtesy of Hotel June Malibu

For a splashier buyout, look to Little Palm Island, a short yacht or seaplane journey from Key West. Guests who book the whole island are encouraged to “dream the unimaginable,” says Bill Foster, regional director of marketing for Noble House Hotels & Resorts. The property, which typically books three buyouts per year, has arranged everything from 10-foot sand sculptures to a pop-up outdoor casino.

Then there are the properties that are taking buyouts to new heights. Last year, Shinta Mani Mustang, the much anticipated luxury mountain lodge in Nepal, booked its first buyout less than three months after opening. Developer Jason M. Friedman emphasizes the importance of boutique sizing for buyouts—small enough to feel exclusive but large enough to accommodate corporate groups, unlike many private villas. He also points out that exotic locations offer business travelers experiences not found in traditional MICE—meetings, incentives, conferences and exhibitions—destinations. “This can lead to increased motivation and productivity during the event, as participants will feel valued and appreciated,” he says.