Italian entrepreneur Paolo Barletta, founder and CEO of Arsenale S.p.A., discusses how his company is revolutionizing the global luxury hospitality and train cruising industries, along with the latest trends in the luxury sector.
What is your outlook regarding luxury hospitality and what opportunities do you anticipate for investors and brands from the Middle East?
My outlook is highly positive regarding the future of travel and exploration for individuals seeking to experience life fully. There continues to be a strong desire among people to travel, explore new destinations and create memorable experiences together. While the luxury consumer market may decline over the coming months, potentially at a significant rate, travel remains resilient.
In today’s market, if consumers face a choice between purchasing luxury goods or opting for a lifestyle experience, they prioritize travel. In fact, in 90 percent of cases, individuals will choose to book a trip or indulge in premium food and beverage experiences.
The Middle East is increasingly central to global travel, thanks to major airlines operating to and from key destinations like the UAE. Additionally, Qatar and Saudi Arabia are emerging as important hubs for international travelers looking for unique experiences. Moreover, the region’s favorable weather, particularly during winter months, is drawing many visitors for various cultural and leisure reasons. Although airfare has risen considerably, this increase hasn’t deterred many Europeans or Asians from flying to the Middle East. Ultimately, even for a short weekend getaway, travelers continue to seek enriching experiences in this dynamic region.
What differentiates your hotels in terms of amenities, services and overall guest experience?
Our hotels stand out in the sector through a blend of luxury, heritage and contemporary lifestyle deeply rooted in Italian savoir faire. Additionally, we are proud to collaborate with renowned international brands like Soho House and Orient Express, amplifying our commitment to excellence.
This year marks a significant milestone as we prepare to open the first Orient Express hotel in Rome, which is exciting. Moreover, this opening combines the restyling of this iconic brand with the enchantment of a city as magnificent as Rome. This will be followed by the second opening of the Orient Express Palazzo Donà Giovannelli in Venice.
What truly sets us apart is our ability to offer a legendary yet contemporary luxury experience that embodies Italy’s spirit. Furthermore, we reflect the DNA, heritage and values of the historic hotels we own along with the iconic Orient Express brand.
Experiencing Orient Express is not just about luxury; it’s about embarking on a unique exploration that captivates all senses. Ultimately, guests indulge in the most diverse, magical and refined atmospheres, contributing to a rich narrative of hospitality.
What are the latest trends and developments in the luxury hotels/hospitality industry?
The luxury hospitality industry is rapidly evolving, with emerging trends shaping the future of business. Staying ahead of these trends is essential to meet guest expectations and ensure long-term success. Personalized guest experiences are crucial, as today’s travelers seek meaningful connections rather than just a place to stay. By leveraging data-driven insights, we can tailor services to individual preferences, enhancing guest satisfaction.
Furthermore, experiential travel is redefining luxury, prompting guests to immerse themselves in local culture through unique activities. Additionally, sustainability has become a key priority, with eco-conscious travelers favoring hotels that implement green practices. Therefore, adopting sustainable measures is necessary for meeting customer demand.
Moreover, technology is transforming operations, with innovations like AI-driven services and smart rooms improving the guest experience. It is vital to stay updated with these advancements, while also preserving the unique charm of historic hotels. Ultimately, combining modern technology with traditional elements will create an exceptional and immersive experience for guests.
What are the latest trends and developments in luxury train cruises?
The luxury train cruise market is rapidly growing as travelers increasingly seek sustainable alternatives to air travel. Environmental concerns significantly influence this trend, with train journeys emitting six times fewer greenhouse gases than comparable flights. Additionally, travelers are attracted by the prestigious service and unique charm that luxury rail travel offers. Consequently, this has led to a surge in demand for luxury train cruises, establishing them as a future cornerstone of tourism.
Moreover, these journeys immerse passengers in local cultures and landscapes, featuring curated excursions and exclusive community interactions. This emphasis on creating memorable experiences drives the popularity of luxury rail travel even further. The development of projects like the La Dolce Vita Orient Express fleet requires flexibility and a new approach to harmonize hospitality with railway operations.
What can you tell us about your projects in the Middle East?
As we expand internationally, Arsenale Group aims to be the first Italian operator to respond to high-end tourism market changes. Leveraging our extensive experience, we are developing innovative luxury rail cruise concepts for global expansion. Our first international project, Dream of the Desert, launches in Saudi Arabia in 2026, featuring 15 carriages and 40 cabins.
In addition, we signed an MOU with Etihad Rail to develop a second luxury train journeying across the Arabian Peninsula. This train will have 12 carriages and 37 cabins, with a projected launch date in 2027. Furthermore, we are excited about collaborating with the Egyptian National Railway Authority on two additional projects. The Guardian of the Nile will operate between Cairo and Aswan starting in 2027, enhancing luxury travel options.
