Profit generating events for 5 star hotels include, taking unaffiliated often historical properties and branding them and then selling them (FS GV), building residences on top of or around 5 star properties which themselves don’t make money but which have amenities which attract wealthy potential buyers (FS properties on Lanai), buyers purchasing an entire property or properties and then selling pieces of the investment to private equity groups.
Its difficult to make money as the owner of 5 star hotels even in good financial times, however the management companies often do and are publicly traded.
Its a delicate relationship between owner and managing company. The management companies are brought in early on projects to provide revenue stream and profit projections and they promise a defined return based upon their proprietary knowledge. They want the revenue from the contract, but if the management company is wrong or over promises, the owners can deflag or make work life unpleasant for the management.
Large individual investors often engage two luxury brands and have properties operating near each other to compare performance of the management companies.
I know of owners in Hong Kong who have their meetings with a 5 star management company in a room which looks out at another property owned by the same person but operated by a different management company.