Hotels are an important city-building tool. Let me give you an example. Each year, Conde Nast Traveler publishes a list of the best places to visit right now. Here's the 2025 list. If you scroll through it, one of the 25 places you'll find is Marseille. And if you look at the first picture, you'll find a hotel/restaurant called Tuba Club.

Long-time readers of this blog will know that I'm a big fan of Marseille and that, back in 2021, Neat B and I stayed at this hotel. In fact, the whole reason we even decided to stop in the city for the first time was so that we could check out this exact place. It opened the summer before and I had seen it written up somewhere.

I can also tell you that if you flip through Monocle's new handbook about France and go to the hotel section, you will likewise find Tuba Club. The place is seemingly everywhere and now has a loyal following.

But here's the important thing: it only has 5 rooms! And the room we stayed in was best accessed via a window and a large rock outcropping beside it. There's no way this place would meet code anywhere in Canada. But boy was it cool. And because we loved the experience so much, we decided to go back to Marseille the following summer and check out more of the city. It didn't disappoint.

Now I tell people and write blog posts about how much I love Marseille. And it all started with 5 non-code-compliant rooms perched on a bunch of rocks in a sleepy fishing port on the south end of the city. A great hotel can help you build your city.

One school of thought is that if you're not in the real estate business, and you're in some other business like fashion, then you probably shouldn't own a lot of your real estate. The general idea is that the opportunity cost of doing so is too great; it ties up a lot of capital, taking it away from the core business.

But then there's LVMH.

In 2023, the company spent €2.45 billion on real estate across the world, mostly for its retail stores. And then this week it was announced that, earlier this year, the company closed on the Villa Bagatelle in Cannes for €46.5 million. Supposedly this is one of the most expensive homes ever sold in the city.

LVMH plans to use the 12-suite villa for brand activations during events like the Cannes Film Festival, and then rent it out when they don't need it.

So clearly they are of a different school of thought. They are blending experiential marketing and real estate investing, which is an interesting approach. It also makes me wonder if this has something to do with the fact that Bernard Arnault started his career in real estate.

For more information on the Villa Bagatelle or to inquire about renting it for your next family vacation, go here.

This afternoon we went to the Mucem (Museum of Civilizations of Europe and the Mediterranean) here in Marseille. By far, my favorite exhibition was one that dealt with the urbanization of five cities surrounding the Mediterranean — namely Marseille, Venice, Istanbul, Cairo, and Alger. At one point, this was the center of the commercial world. Great empires were forged and great fortunes were made here. But things have changed a little since then. And in some cases, what we are now left with are scenes like the one you see above (photograph by Martin Parr). This is easily the greatest photo of Venice I have ever seen. Venice is a tiny city, but it receives tens of millions of tourists each year. This photo does an extraordinary job of capturing what that might feel like.