A recent study conducted by HSMAI Europe has indicated that the luxury and up-market segment within European hotels is outperforming more mainstream categories.
For instance, the “Upscale” segment experienced a growth in revenue per available room (RevPAR) of approximately 6.9% in January 2025, accompanied by an increase in occupancy of about 1.9% points and a rise in average daily rate (ADR) of roughly 3.2%.
Notably, Southern and Eastern Europe are identified as significant areas of growth, whereas traditional Western European destinations continue to maintain elevated rates but are encountering heightened competition.
Major players in the luxury hotel sector are intensifying their strategies by implementing higher rates, offering premium services, and attracting strong investor interest.
This scenario implies that competition will become increasingly fierce, and differentiation strategies will be crucial.
I recognize a valuable connection here that sheds light on Terre Blanche‘s decision to collaborate with Troon International.
This partnership seems to be a strategic move aimed at enhancing its competitiveness in the market.
Starting in 2025, the idea of “sustainable luxury” will shift from being a bonus to a basic expectation in the luxury hospitality industry.
Guests will expect hotels to have credible environmental and social credentials, such as
- bioclimatic architecture,
- resource-efficient operations, and
- local sourcing of food and beverages, rather than just offering standard luxury amenities.
Troon’s expertise in sustainable golf course management provides significant advantages in meeting these changing industry standards.
Will they also work together to develop “hotel-branded residences” as a strategic move to meet the increasing demand for product diversification?
I am eagerly awaiting responses to exciting questions and challenges from Terre Blanche management.
Terre Blanche & Troon International partnership – Details
Terre Blanche is poised to make a significant impact by becoming the first Troon-affiliated destination in France, officially recognized as a “flagship” Troon property in Europe.
This affiliation presents an excellent opportunity for Terre Blanche to utilize Troon’s extensive global marketing channels, including
- Troon Rewards,
- Troon Golf Vacations and
- Troon’s communication network.
By doing so, the resort can effectively enhance its visibility and attract a new clientele of high-value guests from around the world.
Moreover, aligning with a globally esteemed golf brand strengthens Terre Blanche’s position in the luxury golf and resort market.
This relationship will not only justify premium pricing but also stimulate international inbound traffic, especially among golfers, thereby elevating the resort’s reputation beyond its local and regional presence.
Utilizing Troon Privé® Privileges, which provide access and reciprocal rights at over 145 private clubs globally, can serve as a strong differentiator for our resort.
This unique offering has the potential to attract visitors from beyond the local area, enhancing our overall appeal.
Furthermore, by leveraging Troon International’s expertise, we can enhance operational efficiency, potentially leading to better profit margins and increased capacity for investment in the resort’s growth and development.
It is anticipated that Terre Blanche’s additional services, such as the spa, hotel, F&B, and real estate, will also gain advantages from this partnership.
The partnership model presents an opportunity for Terre Blanche to alleviate certain operational risks associated with independent management.
By utilizing Troon’s extensive expertise, the organization can reduce costs associated with experimentation and enhance performance predictability.
Troon impact
Based on Troon case studies and press data, typical improvements in the first 3 years post-affiliation are:
- Golf Rounds: 10-20% – Troon-managed resorts average 12–15% lift via network access & marketing
- Average Spend per Golfer – +5 – 10% – Premium positioning, improved service, and F&B upselling
- Hotel Occupancy – +8 – 12% – International marketing and cross-booking from the Troon network
- ADR (Average Daily Rate) – +5 – 8% – Brand premium and higher-quality guest mix
- Membership Enrolment – +10 – 15% – Currently, they have 350 members. Added value via Troon Privé and reciprocal access.
- Ancillary Spend (spa, F&B, events) – +8 – 15% – Cross-selling to golf and loyalty guests
- International Guest Ratio – +10 – 20 per person – Troon’s US, Middle East & Asian client base
Will Troon International rise to the challenge and achieve these results?