KEY MARKET INSIGHTS
The global luxury hotel market size was valued at USD 140.28 billion in 2023 and is anticipated to grow from USD 154.32 billion in 2024 to USD 369.36 billion by 2032, exhibiting a CAGR of 11.5% during the forecast period of 2024-2032. North America dominated the luxury hotel market with a market share of 32.23% in 2023.
Luxurious stays during family vacation time or offering over-the-top facilities for upper management executives during business tours have primarily supported the luxury hospitality industry. Hotels strive to showcase the highest quality of services and features, from interior designing and food offerings to extended types of services, such as spas, gyms, swimming pools, and laundry, among others, to attract guests.
The emergence of online accommodation booking services has further accelerated market proliferation. For instance, on 10th February 2021, Marriott International released another version of its mobile app, Marriott Bonvoy, with new features such as better booking options, enhanced personalized experiences, and customizations in earning and redeeming points. Therefore, the increased demand for luxury hotels’ premium services with improved booking facilities is anticipated to consolidate the luxury hotel market share.
On the contrary, the COVID-19 pandemic also impacted the luxury hotel market. Travel restrictions, lockdowns, and concerns about the virus led to a sharp decline in travel globally. Besides, business and leisure travelers canceled or postponed their trips, resulting in low occupancy rates and reduced revenue for luxury hotels. With fewer guests and decreased demand for accommodations, luxury hotels experienced significant revenue losses. Many hotels were forced on temporarily closing their doors or operating at a reduced capacity, leading to financial challenges and layoffs within the industry. Besides, as per the Expedia Annual Vacation Deprivation study, released on 3rd February 2021, 42% of survey respondents had to cancel one or more trips due to COVID-19 in 2020. However, as per the same survey, 36% of respondents stated planning regular vacations in 2021.
LUXURY HOTEL MARKET TRENDS
Adoption of Green Practices is the New Trend in Luxury Business
The ‘Five Star Alliance’ has listed several luxury eco-friendly hotels across the globe. The listed hotels include Banyan Tree Bintan (Indonesia), Four Seasons Vancouver (Canada), Hyatt at Olive 8 (the U.S.), Shangri-La Hotel Bangkok (Thailand), and The Oberoi Vanyavilas (India), and others. These hotels are listed based on several factors, including using locally available materials, recruiting a local labor force, and adopting sustainable business practices.
Therefore, hotel owners focus on offering services that do not harm the environment due to the shifting consumer preference toward natural living. For instance, in March 2023, The Hotel Sustainability Basics (Basics) verification scheme, launched by the World Travel & Tourism Council (WTTC), offers a framework for tourist accommodation providers globally. It comprises a set of criteria that all hotels should adopt to promote responsible and sustainable travel & tourism practices.
Request A Free Sample to learn more about this report.
LUXURY HOTEL MARKET GROWTH FACTORS
Blooming Travel and Tourism Industry to Expand Market Size
The tourism industry has witnessed continued growth over the years globally, with an increased number of domestic as well as international tours. As per the World Tourism Organization (UNWTO)’s report on the COVID-19 impact assessment on international tourism, published in 2022, over 900 million tourists traveled globally in 2022, double that of tourists in 2021. In addition, as per the global consumer survey statistics revealed by World Travel & Tourism Council (WTTC) at the 22nd Global Summit in Riyadh, Saudi Arabia, in November 2022, among more than 26,000 consumers across 25 countries, 63% are planning a leisure trip in the new 12 months, 27% planning three or more trips during the period.
Besides, the increasing availability of lodging packages with deluxe rooms and high-end services has attracted many guests for extended stays, thereby boosting revenue generation. The increasing adoption of advanced technologies in offering various facilities, such as free Wi-Fi or smart bathrooms, in 5-star hotel rooms would attract guests. Therefore, the growing preference of sports teams as well as spectators for leisure & luxury travel-related activities has bolstered the demand for lavish hospitality places.
Increasing Number of High Net-Worth Individuals to Support Growth
Wealthy consumers primarily avail luxurious services, and therefore, the ever-growing wealthy populations across the globe are likely to promote market expansion. Besides, high net-worth individuals often seek exclusive and luxurious experiences when traveling. Luxury hotels cater to this demand by offering high-end amenities, personalized services, and exquisite accommodations that appeal to affluent travelers seeking opulence and sophistication. According to the data presented by the Organization for Economic Co-operation and Development (OECD), in 2021, 1% of the U.S. population holds 40.5% of the overall nation’s wealth.
Besides, high-end hoteling businesses are on the rise owing to constant bookings from business executives at luxury airport hotels or luxury city hotels centrally located conveniently. For instance, 2L De Blend in Utrecht, Netherlands, received The World Luxury Hotel Awards under the LUXURY BUSINESS HOTEL category two times consecutively in 2020. Therefore, an increasing number of wealthy populations and a rising number of high-class business tours would provide an impetus to this market.
RESTRAINING FACTORS
Emergence of Accommodation-Sharing Facilities at Lower Prices to Limit Luxury Hotel Services Demand
Higher prices of stay in higher star-rated hotels, coupled with the emergence of low-cost shared accommodation platforms such as Airbnb in low-income countries, are likely to hamper the market growth. Millennials and younger travelers, in particular, may prefer the flexibility and authenticity offered by accommodation-sharing platforms. They may value the opportunity to stay in local neighborhoods, interact with hosts, and experience destinations like a local, rather than opting for the luxury and amenities provided by traditional hotels. Additionally, the growing prevalence of budget and mid-scale hotels in several countries worldwide would further limit market expansion.
LUXURY HOTEL MARKET SEGMENTATION ANALYSIS
By Room Type Analysis
Premium Services Offered at Comparatively Lower Costs to Aid Upscale Segment to Dominate
Based on room types, the market is segmented into luxury, upper-upscale, and upscale. The growing trend of affordable luxury services will likely increase the footfall in upscale hotels, making it a dominant segment in the global market. The number and quality of services offered to the guest differ as per the room type. As per the guest satisfaction survey of J.D. Power released in July 2020, the following rankings were given for hotel brands based on guest satisfaction level in their respective types, Luxury: The Luxury Collection, Upper-upscale: Wyndham Grand Hotels, and Upscale: Hyatt Houses.
By Category Analysis
Chain Segment to Hold Highest Share Backed by Greater Number of Branded Chain Hotels
The global luxury hotel market analysis can be categorized based on the category are chain and independent. The widely distributed presence of hotels in the chain category worldwide makes the chain hotel segment hold a major share of the global market. Hotels in the chain segment focus on expanding their reach to various parts of the globe, strengthening their presence in every region. For instance, in December 2022, Radisson Hotel Group, a luxury hospitality chain, expanded its presence by opening its first Radisson Blu Mosi-oa-Tunya Livingstone resort in Zambia, Africa. The Group plans to open 150 hotels in the region by the end of 2025.
To know how our report can help streamline your business, Speak To Analyst
However, organizations, such as Small Luxury Hotels of the World (SLH) focus on promoting smaller, independently-owned luxury hotels globally, likely to fuel the independent hotel segment’s growth.
REGIONAL INSIGHTS
North America Luxury Hotel Market Size, 2023 (USD Billion)
www.fortunebusinessinsights.com
NORTH AMERICA
USD 45.21 Billion
To get more information on the regional analysis of this market, Request A Free Sample
The North American market size was valued at USD 45.21 billion in 2023. Increasing spending on extravagant lodging in the U.S. and Canada contributes to greater revenue generation, making North America a dominant region. According to the data presented by American Hotel and Lodging Association (AHLA), American hotel room services’ revenues and U.S. hotel occupancy rate reached USD 168.0 billion and 63.4% in 2022. Therefore, the regional market is driven by the increasing preference for leisure travel coupled with the higher spending power of the region’s population.
To know how our report can help streamline your business, Speak To Analyst
Europe is expected to hold a considerable market share due to the significant European spending on travel & tourism-related services. According to the data presented by the European Union Department of Statistics (EU), nearly 56% of European residents made at least one personal tourism trip in 2021. In addition, 114 million nights were spent by international tourists in Spanish tourism accommodations in 2021. Therefore, the rising penetration of technically sound high-scale hotel chains to accommodate an increasing number of tourists in the region is likely to increase the room occupancy rate of European luxury hotels.
The growing upper-middle-class and middle-class populations in the Asia Pacific region with increasing living standards have significantly contributed to the market’s growth. International hotel chains are therefore investing heavily in the region to expand their presence. For instance, in May 2021, Hilton Hotels & Resorts signed an agreement with four luxury hospitality businesses, Conrad Shanghai, Waldorf Astoria Shenzhen, Conrad Zhuhai, and Conrad Wuhan, to open more than 700 hotel rooms in China. Besides, an increasing foothold of domestic players, including The Oberoi, Shangri-La International Hotel Management, and Banyan Tree, would further support market growth.
Rising governmental initiatives in South American countries to grow the tourism & hospitality sectors would positively impact the region’s market. In addition, improving standard of living and increasing number of higher income population groups in Chile and Peru is supporting the services revenues in the region.
The market in the Middle East and Africa is primarily driven by countries associated with GCC, owing to the presence of several millionaires and billionaires in these countries. According to the data presented by the United Nations Economic and Social Commission for Western Asia (UNSCWA), in March 2022, 10% of the population held nearly 80% of the wealth in Saudi Arabia. From 2019 to 2022, Saudi Arabian millionaires’ average wealth increased by 20%. Therefore, being major oil-exporting countries, GCC countries have a strong presence of a wealthy population, which is likely to propel the market in the region.
LIST OF KEY COMPANIES IN LUXURY HOTEL MARKET
Introduction of New Premium Facilities by Key Players to Increase Competition
Introducing enhanced services by key players at their newly introduced deluxe facilities will likely attract more guests, increasing competition amongst players to acquire new clientele and retain regular visitors. Nowadays, they are mearing their hospitality services’ performance by understanding the overall comfort offered to customers through their services, to build their operational capabilities. Additionally, key players in the market are investing in implementing strategies such as mergers and acquisitions adopted by key players are intended to increase their brand portfolios and enlarge their market share. For instance, in September 2022, Wyndham Hotels & Resorts, Inc., an American hotel company, invested USD 44.0 million to acquire the Vienna House brand from a Berlin-based hotel operator HR Group. This acquisition strategy will help the hotel group add a portfolio of 40 upscale & midscale hotels and 6,000 rooms.
LIST OF KEY COMPANIES PROFILED:
Marriott International, Inc. (U.S.)
Hyatt Hotels Corporation (U.S.)
InterContinental Hotels Group plc (U.K.)
Four Seasons Hotel Limited (Canada)
Hilton Hotels & Resorts (U.S.)
Kempinski Hotels S.A. (Switzerland)
Accor SA (France)
The Indian Hotels Company Limited (India)
Mandarin Oriental Hotel Group (Hong Kong)
Shangri La International Hotel Management Ltd. (Hong Kong)
KEY INDUSTRY DEVELOPMENTS:
March 2022 – Rosewood Hotel Group, a global hospitality company, opened a new ultra-luxury hotel in Sao Paulo, Brazil. The hotel has high-end stores, entertainment avenues, artwork houses, garden towers, and luxury accommodations.
January 2022 – Reliance Industries, Ltd. invested USD 98.15 million to acquire New York, U.S.-based premium luxury hotel Mandarin Oriental to expand its American luxury hotel industry presence.
January 2021: Accor announced opening new facilities under the luxury segment, including Banyan Tree, Fairmont, Sofitel, and others, at various global locations. All facilities will likely comply with Accor’s ALLSAFE hygiene and cleanliness label.
January 2021 – Marriott International, Inc. announced its plans to open nearly 100 facilities in Asia Pacific in 2021 with luxury brands such as The Ritz-Carlton, St. Regis, W, The Luxury Collection, and JW Marriott, among others, across the region.
March 2020: Luxe Collection introduced five new facilities, including Eurostars Magnificent Mile (Chicago), The Belmont (Dallas), Il Tornabuoni (Florence), CoolRooms Atocha (Madrid), and Zeavola Resort (Koh Phi Phi, Thailand). This would expand Luxe Collections’ boutique 4- and 5-star properties portfolio.
REPORT COVERAGE
An Infographic Representation of Luxury Hotel Market
View Full Infographic
To get information on various segments, Share Your Queries With Us
The market research report provides detailed market analysis and focuses on key aspects, such as competitive landscape, room types, and categories. Besides this, the report on the global insights into the current industry trends, drivers, and restraints and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors contributing to the market’s growth in recent years.
REPORT SCOPE & SEGMENTATION
ATTRIBUTE
DETAILS
Study Period
2019-2032
Base Year
2023
Estimated Year
2024
Forecast Period
2024-2032
Historical Period
2019-2022
Growth Rate
CAGR of 11.5% during 2024-2032
Unit
Value (USD Billion)
Segmentation
By Room Type
Luxury
Upper-upscale
Upscale
By Category
Chain
Independent
By Geography
North America (By Room Type, Category, and Country)
U.S. (By Category)
Canada (By Category)
Mexico (By Category)
Europe (By Room Type, Category, and Country)
U.K. (By Category)
Germany (By Category)
France (By Category)
Italy (By Category)
Spain (By Category)
Rest of Europe (By Category)
Asia Pacific (By Room Type, Category, and Country)
China (By Category)
India (By Category)
Japan (By Category)
Australia (By Category)
Rest of Asia Pacific (By Category)
South America (By Room Type, Category, and Country)
Brazil (By Category)
Argentina (By Category)
Rest of South America (By Category)
Middle East and Africa (By Service Type, Category, and Country)
South Africa (By Category)
UAE (By Category)
Rest of the Middle East & Africa (By Category)
FREQUENTLY ASKED QUESTIONS
How much is the luxury hotel market worth?
Fortune Business Insights says that the global market size was valued at USD 140.28 billion in 2023 and is projected to reach USD 369.36 billion by 2032.
What was the value of the luxury hotel market in North America in 2023?
At what CAGR is the market projected to grow during the forecast period of 2024-2032?
Which is the leading segment in the market?
Which is the key factor driving the market?
Who are the major players in this market?
Which region held the highest share of the market?
Which factors pose growth opportunities in the market?
SEEKING COMPREHENSIVE INTELLIGENCE ON DIFFERENT MARKETS? GET IN TOUCH WITH OUR EXPERTS
Speak to an Expert
REQUEST SAMPLESPEAK TO ANALYST
STUDY PERIOD:
2019-2032
BASE YEAR:
2023
HISTORICAL DATA:
2019-2022
NO OF PAGES:
160
Request Sample
Ask For Customization
Get a Quote
Speak To Analyst
Inquire Before Buying
Personalize this Research
Granular Research on Specified Regions or Segments
Companies Profiled based on User Requirement
Broader Insights Pertaining to a Specific Segment or Region
Breaking Down Competitive Landscape as per Your Requirement
Other Specific Requirement on Customization
Consumer Goods Clients
Related Reports
Spa Services Market
Salon Service Market
Luxury Goods Market
Hotel Market
Client Testimonials
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”
- ONE OF THE LARGEST COMPANIES IN THE DEFENCE INDUSTRY
“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.” - ONE OF THE LARGEST & RENOWNED MEDICAL RESEARCH CENTERS BASED IN THE U.S. ON A REPORT ON THE U.S. NIPT MARKET.
“Thanks a million. The report looks great!” - FEEDBACK FROM A CONSULTANT ON A REPORT ON THE U.S. BEEF MARKET.
“Thanks for the excellent report and the insights regarding the lactose market.” - BRAZIL BASED COMPANY SPECIALIZING IN PRODUCTION OF PROTEIN INGREDIENTS.
“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.” - GLOBAL DIGITAL SERVICES AGENCY ON A REPORT ON THE GLOBAL LUXURY GOODS MARKET.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.” - U.S.-BASED BIOTECHNOLOGY COMPANY FOCUSSING ON TREATMENT OF CHRONIC PAIN.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.” - EUROPE-BASED PROVIDER OF SOLUTIONS TO AUTOMATE DATA CENTRE OPERATIONS.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.” - INDIA-BASED MANUFACTURER OF INDUSTRIAL AND SPECIALTY INTERMEDIATES WITH A STRONG GLOBAL PRESENCE.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.” - ONE OF THE LARGEST COSMETICS COMPANY IN THE WORLD.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.” - U.S. BASED STARTUP OPERATING IN THE CULTIVATED MEAT MARKET.
“We received the below report on the U.S. market from you. We were very satisfied with the report.” - GLOBAL HEARING AIDS MANUFACTURER.
“I just finished my first pass-through of the report. Great work! Thank you!” - U.S. BASED SOLAR RACKING SOLUTIONS PROVIDER.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.” - WORLD’S LEADING ADVISORY FIRM.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!” - GERMANY BASED MACHINE CONSTRUCTION COMPANY.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.” - JAPANESE MANUFACTURING COMPANY OF STATIONERY PRODUCTS.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects” - ONE OF THE LEADING FOOD COMPANIES IN GERMANY
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!” - INTUITIVE SURGICAL
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.” - MAJOR FOOD COMPANY IN JAPAN
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future” - ZIERING MEDICAL
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response” - MAJOR MANUFACTURER OF PRECISION MACHINE PARTS IN INDIA
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business” - HEWLETT-PACKARD
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive” - GLOBAL MANAGEMENT CONSULTING FIRM
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.” - UK-BASED START-UP IN THE MEDICAL DEVICES SECTOR
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.” - ONE OF THE LARGEST COMPANIES IN THE DEFENCE INDUSTRY
“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.” - ONE OF THE LARGEST & RENOWNED MEDICAL RESEARCH CENTERS BASED IN THE U.S. ON A REPORT ON THE U.S. NIPT MARKET.
Get in Touch with Us
+1 424 253 0390 (US)
+44 2071 939123 (UK)
+91 744 740 1245 (APAC)
sales@fortunebusinessinsights.com
Call
Email Request Sample
Subscribe News Letter
Submit
Trust Online
Contact Us
US +1 424 253 0390
UK +44 2071 939123
APAC +91 744 740 1245
sales@fortunebusinessinsights.com
Connect with us
Information
FAQs
Testimonials
Terms of Use
Privacy Policy
Careers
How To Order
© 2024 Fortune Business Insights . All rights reserved
Go Top
Source: https://www.fortunebusinessinsights.com/luxury-hotel-market-104408