Luxury Hotel Global Market Report 2024

The luxury hotel market size has grown strongly in recent years. It will grow from $100.14 billion in 2023 to $106.78 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The growth observed in the historical period can be attributed to several factors, including economic growth and rising disposable income, the upward trend in global tourism, a cultural shift towards experiential travel, an increase in business travel, emphasis on brand differentiation and innovation within the hospitality sector, the strategic appeal of locations and destinations, and the influence of cultural and heritage tourism trends.

The luxury hotel market size is expected to see strong growth in the next few years. It will grow to $131.49 billion in 2028 at a compound annual growth rate (CAGR) of 5.3%. The anticipated growth in the forecast period can be attributed to ongoing economic prosperity, the increasing aspirations of the middle class, a focus on sustainable and eco-friendly practices within the hospitality industry, the rise of health and wellness tourism, the demand for unique and authentic travel experiences, and the fostering of strategic partnerships and collaborations. Major trends expected in the forecast period include a continued emphasis on sustainable and eco-friendly practices, the integration of smart hotel technologies, a growth in wellness and health-centric offerings, an emphasis on customized experiences and personalization for guests, and a focus on culinary innovation, including the presence of Michelin-starred restaurants in luxury hotels.

The anticipated increase in travel and tourism is expected to drive the growth of the luxury hotel market in the future. Travel and tourism involve individuals or groups traveling to and staying in places outside their usual environment for various purposes such as leisure, business, or other activities. Luxury hotels play a crucial role in the travel and tourism industry by providing personalized services, exquisite accommodations, and unique experiences tailored to the preferences of discerning travelers seeking comfort and exclusivity. For example, in January 2023, the United Nations World Tourism Organization (UNWTO), a Spain-based intergovernmental organization, reported that over 900 million tourists traveled abroad in 2022, which is approximately double the number recorded in 2021. As a result, the growth of travel and tourism is a driving factor for the luxury hotel market.

The high operating costs associated with luxury hotels are expected to pose a limitation on their growth. Operating costs in luxury hotels encompass ongoing expenses essential for the day-to-day operations of the hotel business. These costs contribute to maintaining the quality of service and amenities that define a luxury establishment. High operating costs often translate into well-trained and skilled staff, elevated service standards, and the ability to offer unique and personalized experiences to guests. This, in turn, enhances the prestige of the luxury hotel, attracting discerning customers willing to pay a premium for exceptional services. For instance, as of August 2023, according to FinModelsLab, a Ukraine-based financial advisory firm, luxury hotels in the United States typically allocate an average of $2,196 per available room annually for utilities and energy expenditures. The specific amount may vary based on factors such as the hotel's size, geographical location, and amenities provided. Consequently, these high operating costs present a challenge to the growth of the luxury hotel market.

Major players in the luxury hotel market are dedicated to enhancing the guest experience through the implementation of various technological advancements to create a seamless digital welcome experience. The guest experience encompasses the overall satisfaction of a guest throughout their interaction with a hotel or other hospitality service provider, spanning all touchpoints from the booking process to the post-stay experience. As an illustration, in October 2021, Hilton Worldwide Holdings Inc., a prominent US-based hospitality company, introduced several technology enhancements aimed at improving the guest experience and ensuring a more streamlined travel experience across its 18 world-class hotel brands. These enhancements include features such as digital key sharing, automated complimentary room upgrades, confirmed connecting rooms, and improved booking options. Gold and Diamond Hilton Honors members are provided with 72-hour notices of potential upgrades, enabling them to promptly select their upgraded accommodation through the Hilton Honors app. These additions complement the recently introduced Confirmed Connecting Rooms feature, allowing individuals to swiftly and effortlessly confirm at least two connecting rooms during the booking process.

Major companies within the luxury hotel market are prioritizing the enhancement of the guest experience by leveraging various technological advancements to improve the digital welcome experience. The guest experience encompasses a guest's overall satisfaction throughout their interaction with a hotel or other hospitality service provider, covering all touchpoints from the booking process to the post-stay experience. As an example, in October 2021, Hilton Worldwide Holdings Inc., a prominent US-based hospitality company, rolled out multiple technology enhancements designed to elevate the guest experience and create a more seamless travel experience across its 18 world-class hotel brands. These enhancements include features such as digital key sharing, automated complimentary room upgrades, confirmed connecting rooms, and enhanced booking options. Gold and Diamond Hilton Honors members are provided with 72-hour notices of potential upgrades, enabling them to promptly select their upgraded accommodation through the Hilton Honors app. These additions complement the recently introduced Confirmed Connecting Rooms feature, allowing individuals to swiftly and effortlessly confirm at least two connecting rooms during the booking process.

In January 2022, Reliance Industries Ltd., an Indian petroleum refinery company, completed the acquisition of Mandarin Oriental International Ltd. for an estimated $98.15 million. Through this strategic move, Reliance Industries Limited seeks to broaden its presence in the luxury hospitality sector. Mandarin Oriental International Ltd., headquartered in the United States, is a prestigious luxury hotel group that operates hotels and residences across 25 countries and territories worldwide.

Major companies operating in the luxury hotel market report are Jardine Matheson Holdings Ltd., Marriott International, Inc., Hilton Hotels & Resorts, Hyatt Hotels Corporation, W Hotels, Kempinski Hotels S.A., Host Hotels & Resorts, Inc., Accor SA, Four Seasons Hotel Limited, Ritz-Carlton Hotel Company LLC, Park Hotels & Resorts, Rosewood Hotel Group, InterContinental Hotel Group , Jumeirah International LLC, Radisson Hotels International Inc, Shangri-La International Hotel Management Ltd., Belmond Management Limited, The Peninsula Hotels, Aman Resorts, Mandarin Oriental Hotel Group Limited, Soneva, Banyan Tree Holdings, Six Senses, Oetker Collection, Aloft Hotels, Auberge Resorts, The Luxe Life Hotel, Fairmont Hotels & Resorts, Waldorf Astoria , The Oberoi Group.

North America was the largest region in the luxury hotel market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the luxury hotel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the luxury hotel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A luxury hotel is a establishment that provides an opulent lodging experience to its guests, characterized by high-end furnishings, lavish details, meticulous attention to aesthetic elements, and exceptional service. These upscale establishments are dedicated to creating a memorable experience for their guests by addressing every need and offering delightful experiences throughout their stay.

The primary types of luxury hotels include business hotels, airport hotels, suite hotels, resorts, and others. Business hotels are specifically tailored to meet the needs and preferences of business travelers. The room types encompass luxury, upper-upscale, and upscale categories, which can further be classified as chain and independent establishments.

The luxury hotel market research report is one of a series of new reports that provides luxury hotel market statistics, including luxury hotel industry global market size, regional shares, competitors with luxury hotel market share, detailed luxury hotel market segments, market trends, and opportunities, and any further data you may need to thrive in the luxury hotel industry. This luxury hotel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The luxury hotel market includes revenues earned by entities by spa services, event space, room sales and rentals services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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