Report finds majority of luxury hotels have ‘lost their soul’

Vione Paros

Report finds majority of luxury hotels have ‘lost their soul’

May 27, 2025

From the ‘beige-ification’ of hotels to the growing power of loyalty programmes, a new report from Preferred Hotels & Resorts nods to the future of luxury hospitality. Robbie Hodges reports

A new report from Preferred Hotels & Resorts and Harris Poll suggests that the majority of luxury hotels have “lost their soul”. 

In the company’s first-ever Luxury Travel Report, the hotel group found that the desire for travel remains robust, with luxury travellers planning an average of eight leisure trips in 2025, and over half expecting they’ll spend more on travel than in the year before. The report is divided into five sections, each reflecting emerging forces in luxury travel: 

Firstly, the “beige-ification” of travel – a cultural phenomenon also known as "The Age of Average" which has been heavily researched by Globetrender and features in our Macro-Trend Opportunities workshop.

A vast majority (70%) believe that soul has given way to standardisation, with modern luxury hotels having broadly very similar design, services and experiences. In response, travellers are seeking locations that excite, along with surprising environments and experiences that speak to their individuality. 

(L-R) Fairmont Mumbai, Vione Paros, Rosewood Miyakojima

(L-R) Fairmont Mumbai, Vione Paros, Rosewood Miyakojima

In a recent interview published by Globetrender, Tamara Lohan, cofounder of Mr & Mrs Smith, described the brand's conception as, "a rebellion against beige". While the company was founded over two decades ago, subsequent globalisation has resulted in a global homogenisation of design styles, with only a handful of brands (The Standard, for example) maintaining a distinct sense of individuality.

"Every time we travelled, we were disappointed – and that disappointment drove us," Lohan said at a recent travel summit. "Mr & Mrs Smith became a champion of the beautiful, the stylish, and the individual. Even today, that’s what inspires me: hoteliers who can create meaningful experiences, who make someone’s holiday truly special." 

The second driving force mentioned in the Preferred Hotels & Resorts report is the appetite for transformation, and the consumer desire for experiences that fundamentally shift their worldview – a topic also addressed in Globetrender’s Macro-Trend Opportunities Workshop. Preferred Hotels reports that one in five luxury travellers believe insider connections unlock the most forgettable travel moments. 

They’re also increasingly expecting curation – the report’s third driving force – with curation ranked as essential to luxury travellers as five-star service. Almost all (over 90%) of those surveyed say the best journeys feel effortless despite being expertly crafted. And correspondingly, 84% agree that a trusted travel advisor is more valuable than unlimited internet research. 

Tamara Lohan at Citizen Femme "Passport To" Summit, 2025

Tamara Lohan at Citizen Femme's Passport To Summit, 2025

The fourth shift revolves around heritage. Luxury travellers want to be participants rather than passive observers of history and culture, with over 90% seeking experiences that immerse them in history and culture. 

In Globetrender’s recent The Art of British Luxury Hospitality report, we explore how brands are doing just that – from The Savoy reinventing historic rituals, to Black Tomato inviting guests to partake in James Bond itineraries. 

And finally, the Preferred Hotels report claims that loyalty programmes are shaping the future of luxury travel, with travellers appreciating the value they provide in terms of consistency and customisation. Guests don’t just want to feel part of a generic loyalty program; they want brands to serve them in deeply, personal unique ways. 

Click here to read the full report.

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