Luxury Hotel Industry Overview

The global luxury hotel market size was valued at USD 93.59 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. Emerging tourism and corporate industries across various regions, rising disposable income, increasing standard of living of people, and rise in preference for leisure travel are expected to drive the market.

The rise in purchasing power and standard of living are some of the key factors responsible for attracting customers to luxury resorts. As more money is being injected into the economy, demand for luxury accommodations for corporate events, corporate stays, and leisure trips is rising.

Hosting of sports events by a city or country has also been a major factor pushing the demand for luxury accommodations. Sports teams, as well as spectators traveling from various destinations for the tournament, tend to book their stays in luxury hotels, thus leading to a rise in the number of bookings.

Gather more insights about the market drivers, restrains and growth of the Luxury Hotel Market

Major players in the market are investing heavily in infrastructure and upgrading their properties with the latest equipment to enhance aesthetics and overall comfort offered to customers. Control4 Corporation, Crestron Electronics, Inc., and AMX LLC are some of the major companies providing automation solutions for controlling lighting, security, entertainment, energy, and other connected devices with an Internet of Things (IoT) ecosystem.

For instance, Star Hotel Casino in Sydney offers complete guest control for their 174 luxury suites. The suites are integrated with a Control4 system that enables customers to control the television, music system, room temperature, blinds, and lights wirelessly through tablet/mobile applications. The system also incorporates light sensors that help save energy by switching lights off after 30 minutes of the room being unoccupied.

The Gateway Canyon Resort in Colorado has installed an automation system by Crestron Electronics, Inc. for controlling and monitoring electrical fittings and electronics in its rooms. Kapari, a luxury hotel in Santorini Island, has installed an automated control system by AMX LLC in each room to enable high-tech room control for their guests.

On the other hand, a constant increase in travel tourism spending is expected to impact the luxury hotel industry positively. With the increase in disposable income, there is usually an enhancement in people's standard of living, which attracts them to luxury hotels for comfort and enriching experiences. The data substantiate that global trends are changing, and people are opting for luxury hotels and resorts for leisure and corporate meetings and activities.

The government regulations and policies on the tourism industry and tax implications on the luxury hotel market are anticipated to affect the market over the forecast period. The Albanian government has revised its tourism law by relaxing the criteria hotels must comply with to obtain a luxury hotel status. According to the revised law, a 5-star hotel with a minimum investment of USD 17.4 billion would get tax exemptions on these investments. Moreover, hotels receiving special status from the government would benefit from tax exemptions for ten years.

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Luxury Hotel Market Segmentation

Grand View Research has segmented the global luxury hotel market based on type, and region:

Luxury Hotel Type Outlook (Revenue in USD Billion, 2017 - 2030)

• Business Hotels
• Airport Hotels
• Holiday Hotels
• Resorts Spa
• Others

Luxury Hotel Regional Outlook (Revenue in USD Billion, 2017 - 2030)

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE

Key Companies profiled:

• Accor
• Belmond Management Limited
• Four Seasons Hotel Limited
• InterContinental Hotel Group
• Mandarin Oriental Hotel Group Limited
• Marriott International, Inc.
• Rosewood Hotel Group
• The Indian Hotel Company Limited
• Radisson Hotel Group.

Recent Developments

• June 2023, Accor, a French international hospitality group, announced it would open more than 1,200 hotels over the next five years, expanding the number of resorts by one-fifth. The company aims to enhance its geographical presence and strengthen its financial portfolio.
• In June 2023, Marriott International, Inc. signed an agreement with Hiap Hoe Limited, a Singapore-based premium real estate company, to bring the design-forward Aloft Hotel brand to Singapore through HH Properties Pte. Ltd. The 785-room hotel is planned to open in 2023 after a strategic makeover, marking the debut of the Aloft brand in Singapore.
• In June 2023, Outrigger Hotel Hawaii announced plans to invest in Hawaii by purchasing Kauai Beach Resort Spa. The resort is situated on 25 acres of beachfront property with 350 bedrooms and is located on the Hawaiian island of Kauai.
• In June 2023, Blackstone Real Estate Income Trust, Inc., a real estate investment platform, and Ryman Hospitality Properties, Inc., a hotel and resort company, both based in the U.S., announced an agreement to sell the JW Marriott San Antonio Hill Country Resort Spa in San Antonio, Texas to Blackstone.
• In June 2023, Radisson Hotel Group announced the signing of seven additional hotels. The company aims to expand the Group's chain with a fresh entry into the market of Gambia, including the first Radisson Collection in Nigeria, Egypt, and Kenya.
• In February 2023, Hyatt finalized the acquisition of Dream Hotel Group, which adds 12 lifestyle hotels and 24 strategic management agreements for additional openings to the global hospitality powerhouse's portfolio. It also includes lifestyle brands such as Dream Hotel, Unscripted Hotel, and The Chatwal.

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