Is Asia’s luxury all-inclusive boom stuck in the lobby?

ASIA PACIFIC – While the Caribbean and Mexico have long mastered the art of ‘everything-included,’ Asia is still finding its footing with the model in a region synonymous with bespoke, itemized service.

Global hotel chains have been hyping an upper upscale and luxury all-inclusive revolution in Asia since the leisure travel boom post-COVID. But so far, it’s been a slow burn rather than a wave of openings.

The debut of the Paradisus by Meliá Bali in February, and a phase one opening of Rixos Phu Quoc in Vietnam sometime this year, tell a tale of patience.

Owners’ appetite for scaled, pure luxury all-inclusive brands in Asia remains selective. Owners are watching closely, but few are prepared to be early adopters at scale.

Leanne Reddie

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It took years for Meliá Hotels International to convince the owner of the Meliá Bali to go all-in. After all, the resort, located in Nusa Dua, was a money machine since opening 40 years ago. But a dip-a-toe-in-the-water by offering some all-inclusive options at the property proved “the numbers were very good,” said Gonzalo Maceda, Meliá’s vice president development.

“When 30% of sales was all-inclusive and the GOP of the hotel jumped 20% from the previous year, the owner became convinced,” Maceda said. “The property was also planning a renovation [its first since 1985]. So, it was a good opportunity to [re-conceptualize] the resort as a Paradisus.”

Rixos Hotels tried to enter Asia in 2008 with the Rixos Premium Khao Lak. It lasted a year – the hotel was converted to a JW Marriott. This was before Rixos sealed a joint venture with Accor in 2017. Accor then announced it had signed two Rixos resorts in Vietnam, one in Nha Trang, the other in Phen Thiet, slated to open in 2025. Both didn’t happen. This year’s opening of Rixos Phu Quoc, a Sun Group property, may be more long-lived.

Asia is a “long-memory market,” said Leanne Reddie, chief commercial officer of Global Asset Solutions based in Singapore. This implies that short-lived repositionings can still shape market sentiment. Moreover, there’s “a perception risk” across much of Asia that all-inclusive equals mass or midscale, Reddie observed.

“Owners’ appetite for scaled, pure luxury all-inclusive brands in Asia remains selective. Owners are watching closely, but few are prepared to be early adopters at scale,” she said.

Rixos Phu Quoc, a Sun Group property in Vietnam

That’s one reason why the all-inclusive revolution is stuck in the lobby. Owners need to see how dedicated all-inclusive brands remove the buffet-binge stigma and create non-standardized concepts with a clear positioning to attract sophisticated, well-heeled clients.

Pipeline remains short: Paradisus Jomtien Resort, Pattaya, an Asset World Corp. property, is scheduled to open in 2028. In Phuket, Splash Beach Resort will undergo a major renovation and reopen as a Rixos, although no opening date has been given. Club Med will announce its first Exclusive Collection Resorts property in Southeast Asia in the coming months. And that’s roughly it, as of now.

Careful growth

To be sure, chains themselves are selective about growth. Stephen Ho, Hyatt president, Greater China, and Growth, Asia Pacific, said it’s less about investor appetite, and more about “timing and disciplined expansion.”

Hyatt is the player to watch as it is now the undisputed leader with 11 all-inclusive brands, many in the upper-upscale and luxury bracket. So far, however, no signing has been announced.

“In Asia, both owners and operators are taking a thoughtful approach,” Ho said. “All-inclusive is not a one-size-fits-all model. The economics of land, scale, distribution mix and brand positioning must align to truly unlock value. We are intentional about our growth, prioritizing the right destinations and the right partners rather than expanding rapidly. This measured approach is healthy for the long-term sustainability of the [relatively new] segment [in Asia-Pacific].”

He sees strong long-term potential in the region for Secrets, Dreams, Hyatt Ziva and Hyatt Zilara, in destinations with strong leisure appeal, air connectivity, growing intra-Asia demand and favorable development dynamics. Priority markets include Greater China, Japan, Southeast Asia and Southwest Asia.

All-inclusive is not a one-size-fits-all model. The economics of land, scale, distribution mix and brand positioning must align to truly unlock value.

Stephen Ho

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Similarly, Francois Baudin, Rixos chief business officer and ALL Inclusive Collection at Ennismore, said, “For us, growth is not about speed; it is about selecting the right markets where the Rixos’ luxury all-inclusive proposition can be clearly differentiated and properly positioned at the premium end of the segment.”

Baudin is “actively” pursuing further opportunities in Thailand and Vietnam, building on the existing footprint.

Meliá’s Maceda, too, is looking at Thailand (Phuket, Khao Lak) and Vietnam (Phu Quoc and Cam Ranh), along with Indonesia (Lombok) and the Philippines. Echoing the need to find the right markets, Maceda said, “All-inclusive is not for every destination. Bali is a good example why it is right. For one, the traffic [gridlock] today has made it impossible for guests to go beyond the area they are in and explore Bali.”

Paradisus by Meliá offers a ‘Destination Inclusive’ program that curates experiences shaped by Bali's culture and way of life. Guests can dine and unwind on their own terms, without the need to plan or coordinate day-to-day details.

Global Asset Solutions’ Reddie applauds the flexibility, but cautions that all-inclusive in general can be counter-productive for destinations. “Asian destinations are often defined by culture, cuisine, landscape and off-property experiences. In these contexts, a fully bundled all-inclusive structure can risk diluting the value of the destination itself, limiting guest exploration and compressing the experiential narrative,“ she said. “This is why, across Asia, luxury resorts have traditionally favored flexibility and curation over rigid all-inclusive formats, allowing the destination to remain central to the guest experience rather than contained within the resort.”

Largely exclusive?

Meanwhile, how exclusive can a resort truly feel with 1,300 rooms and suites (scaled back from 1,700) and 22 restaurants? Upon completion, the Rixos Phu Quoc will boast nearly triple the inventory of the Paradisus by Meliá Bali, which offers 492 luxury suites and 11 dining venues.

When done right, it supports longer stays and deeper engagement with our guests.

Rajeev Menon

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Rixos has to prove that scale doesn’t mean soul-less. Perhaps owners will witness new brands like Rixos unleashing unprecedented mastery at carving out dedicated spaces – be it a resort-within-a-resort, or adults-only and multi-generational zones – to cater to Asia’s diverse travel segments which yearn for exclusivity, privacy and hyper-personalization.

This nuanced approach is why Rixos sits within the Ennismore portfolio; the partnership blends Rixos’ all-inclusive operational prowess with Ennismore’s lifestyle design and F&B curation, and Accor’s massive distribution engine, Baudin said.

Similarly, Hyatt leverages a dedicated global all-inclusive team to provide Asian owners with expertise in design, operations and commercial strategy.

With new competitors emerging in Asia, Club Med, which pioneers all-inclusive in Asia, is rising to the challenge. Said Sébastien Favre, Club Med’s vice president development, construction & asset management, Southeast Asia & Pacific, “Twenty years ago, our competition came from the lower end of the market. Today, it’s the opposite, coming from luxury players. We are prepared for this as essentially we now have a full portfolio, from upscale, which remains our core, to luxury [Club Med’s Exclusive Collection Resorts], which we intend to expand in Asia.

“We have been operating in Asia for 40 years and have built a trusted brand with a strong distribution arm; 75% of our sales are direct – we don’t work with OTAs, but with partners in every market in the region who have been with us for decades.”

Meliá’s Maceda is “quite happy” about Rixos Phu Quoc opening soon. “We've been pushing the segment ourselves for a long time. Now we have another player joining us in doing so.”

And increasingly, global chains like Marriott International are experimenting with all-inclusive luxury in their hotels in Asia. This trend may encourage the region’s elite to embrace the model, even as it pits traditional luxury hotels against dedicated all-inclusive brands.

Rajeev Menon, Marriott’s president, Asia Pacific excluding China, said, “As demonstrated by our recent signing of Emirates Wolgan Valley, a Ritz-Carlton Lodge, we plan to explore this model selectively with luxury brands like The Ritz-Carlton, where it strengthens both the guest offering and long-term economics. When done right, it supports longer stays and deeper engagement with our guests.”