Adventure Lodging Gains Momentum: Barings & Waterton Invest in Experiential Travel

NEW YORK, NY – November 19, 2025

The Rise of Experiential Travel

The hospitality sector is witnessing a significant shift, moving beyond traditional luxury to embrace experiential travel. A joint investment by global asset manager Barings and real estate investment firm Waterton underscores this trend, with a recapitalization of The Virginian Lodge in Jackson, Wyoming, and Outbound Stowe in Stowe, Vermont. This follows an earlier investment in Poco Diablo Resort in Sedona, Arizona, now rebranded as Outbound Sedona. The properties are part of Waterton’s Outbound Hotels brand, focused on lifestyle hotels in outdoor destinations. This strategic move reflects a growing demand for immersive travel experiences centered around adventure, wellness, and connection with nature.

“We’re seeing a clear appetite from travelers for destinations that offer more than just a place to stay,” notes one industry observer. “They want to experience the location, engage in activities, and create lasting memories.” This demand is driving investments in properties that cater to these desires, emphasizing curated experiences and access to outdoor pursuits.

Barings, with over $470 billion in assets under management, and Waterton, managing approximately $9.5 billion in real estate, are demonstrating confidence in this evolving market. Their investment strategy focuses on enhancing existing properties in prime outdoor locations, rather than pursuing new construction. This approach minimizes environmental impact while maximizing value and appeal.

Place-Based Investment Strategy

The partnership’s focus on “place-based” hospitality is a key differentiator. Rather than adopting a cookie-cutter approach, Waterton and Barings are emphasizing the unique character of each destination. “The goal is to create hotels that are deeply connected to their surroundings,” explains an industry analyst. “Outbound Hotels are designed to reflect the local culture, history, and natural beauty of each location.”

This approach involves not only aesthetic considerations but also operational decisions. The hotels prioritize sourcing local products, employing local staff, and offering experiences that showcase the area’s unique offerings. Outbound Sedona, for instance, is expected to provide guests with access to guided hikes, red rock tours, and opportunities to engage with the local art community. Outbound Stowe will offer skiing and snowboarding in winter, and hiking and biking in warmer months. The Virginian Lodge will emphasize the surrounding Teton landscape and offer access to the area's national parks.

This strategy appeals to a growing segment of travelers who are seeking authentic and meaningful experiences. These travelers are less interested in lavish amenities and more interested in connecting with the local culture and environment. The investments indicate a bet that travelers will pay a premium for hotels that offer these unique benefits.

Economic Impact and Sustainable Tourism

The investments are expected to have a positive economic impact on the local communities of Jackson, Stowe, and Sedona. The renovations and upgrades will create construction jobs, while the hotels themselves will provide long-term employment opportunities in the hospitality sector. Increased tourism spending will benefit local businesses, including restaurants, retail shops, and tour operators.

However, it’s crucial to ensure that this growth is sustainable and doesn’t come at the expense of the environment or local quality of life. “Tourism can be a double-edged sword,” notes a local economic development official. “It can bring economic benefits, but it can also lead to overcrowding, environmental damage, and rising housing costs.”

Waterton and Barings appear to be aware of these challenges. Their investment strategy focuses on enhancing existing properties rather than building new ones, minimizing environmental impact. The hotels also prioritize sustainability initiatives, such as water conservation, energy efficiency, and waste reduction. They also emphasize responsible tourism practices, encouraging guests to respect the local environment and culture. CoralTree Hospitality, managing the Outbound Hotels portfolio, brings a wealth of experience in operating luxury and lifestyle hotels, focusing on sustainability and local integration. The success of this model will depend on continued collaboration with local communities and a commitment to responsible tourism practices.

Furthermore, some observers suggest that the investment should be coupled with initiatives to address the challenges of affordable housing and workforce development in these popular tourist destinations. This will ensure that the economic benefits of tourism are shared more equitably and that local residents can continue to thrive alongside the growing tourism industry.