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.

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

Detailed Segmentation:

Type Insights

Based on hotel type, the market has been segmented into business hotel, airport hotels, holiday hotels, resorts spa and others. The business hotel segment accounted for the largest revenue share of 33.2% in 2022. The rise of the digital nomad and remote work culture has created a new category of travelers who require both leisure and business amenities in their accommodations. Luxury business hotels are capitalizing on this trend by offering not only top-tier workspaces but also spa, dining, and recreational facilities, providing a well-rounded experience for their guests.

Furthermore, sustainability and eco-consciousness have become crucial factors influencing consumer choices, even in the luxury hotel sector. Many upscale business hotels are incorporating eco-friendly practices and designs into their operations, which align with the sustainability goals of modern businesses.

The resorts and spas segment is anticipated to exhibit a CAGR of over 4.9% over the forecast period. With a growing preference for leisure travel, there is a significant rise in demand for holiday resorts and spas that are specially designed to help guests relax and take a break daily routines. Major players in the market distinguish themselves by categorizing their properties into various themes such as spa resorts, sea and spa resorts, beach resorts, mountain/ski resorts, and golf hotel to attract customers. For instance, the Sofitel Agadir Thalassa Sea Spa in Morocco exhibits peace with shades of white and black and the use of a combination of Moroccan culture and modern styles. A personal terrace suite, private beach, and private garden are some of the exquisite features of this resort.

Regional Insights

North American region dominated the market and accounted for largest revenue share of 37.1% 2022 and this trend is expected to continue over the forecast period. The U.S. accounted for the largest revenue share in that market in 2017 since it is a global financial hub and one of the most popular tourist destinations for people worldwide. The Asia Pacific region is projected to witness the highest growth rate over the forecast period.

Asia Pacific is expected to grow at the fastest CAGR of 5.2% during the forecast period. The growing disposable income of families in the Asia Pacific region has boosted the region’s spending on tourism. Also, countries including China, Japan, and Singapore are financial hubs attracting business tourism in the area. The region exhibits moderate growth and high penetration rate owing to its high climatic and geographic diversity, making it one of the most popular tourist destinations in the world.

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Key Luxury Hotel Companies:

• 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

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

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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.