Luxury Vacation Home Investments with Stephen Petasky, Ep. 725

Stephen Petasky is the founder and CEO of The Luxus Group, a hospitality and development firm specializing in luxury vacation homes, global restorations, and high-end resort communities. Over nearly two decades, he’s raised more than $100 million, facilitated 20,000 vacations, and partnered with brands like Four Seasons to deliver premium lifestyle experiences through real estate. His business journey spans from fractional home ownership to international development, all driven by a passion for design, family travel, and scalability.

 

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Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.

Key Takeaways

• Stephen started Luxus by solving his own problem—traveling with young kids—and turned that into a $100M global vacation home portfolio.

• Raising capital gets easier when the investment includes a dual purpose, like lifestyle use alongside financial return.

• Scaling a business requires building it “back to front”—start with the exit goal, then reverse engineer every step.

• Real estate and development success takes patience; some ventures took 7–10+ years to turn profitable.

• Subject matter expertise becomes a valuable asset after years of refinement, leading to higher-impact, lower-risk projects.

 

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Topics

How a Personal Travel Need Became a Syndicated Real Estate Venture

• Started Luxus to create a family-friendly alternative to hotels or inconsistent vacation rentals.

• Solved the problem of predictability, comfort, and flexibility by imagining ownership of 30 homes—then invited others to co-invest.

• Raised $3.5M to purchase three homes; word-of-mouth demand led to $100M+ raised and 50 properties acquired.

Dual-Purpose Investing: Lifestyle + Returns

• Investors received lifestyle benefits—discounted nightly rates—alongside capital preservation.

• These vacation privileges created real financial savings, boosting total return beyond simple IRR metrics.

• Stephen compares the model to a “golf club that sells at the end”—with liquidity and upside built in.

How to Make Raising Capital Easier

• Dual-purpose investments or vendor-aligned capital (e.g., landowners or contractors investing) make raises more compelling.

• Giving investors experiential or operational upside increases buy-in—even when the financial returns are moderate.

• Partnerships built on aligned interests are more resilient over time.

Scaling With Clarity and Hindsight

• Luxus’ new business model was built “back to front,” starting with a $100M valuation target and working backward to day one.

• Planning for bottlenecks—legal, financial, tech, or operational—can reduce future breakdowns.

• AI tools now help model scalable pathways and highlight structural weak points before launch.

New Ventures: Management, Development, and Restorations

• Luxus now manages luxury short-term rentals it doesn’t own, applying hotel-like service and strategy.

• Stephen is a core partner in the Four Seasons Private Residences Las Vegas ($1.3B sellout).

• The company also restores centuries-old Tuscan estates for North American and European clients—12 years in, with a waitlist.

 

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