Luxury Hotel Market: Global Industry Analysis and Forecast (2023-2029)

Luxury Hotel Market Definition:

Along with elegant accommodations, luxury hotels provide a range of additional amenities, including heated and fresh water swimming pools, barbecues, spas, gyms, bars, and other facilities that are specifically tailored to the needs and comfort of their guests. In order to stand apart from the competition, a few of these hotels additionally provide private gardens or areas on the beach, in addition to individual loungers. Progressive luxury hotel market trends are a result of the growth of the travel and tourism industry, the increase in leisure travel preferences, and changes in the standard of living.

 

Further, the Luxury Hotel market is segmented by Type, Room Type, Category and Geography. On the basis of Type, the Luxury Hotel market is segmented under Business Hotels, Airport Hotels, Suite Hotels and Resorts. Based on the Room Type, the Luxury Hotel market is segmented under the channels Luxury, Upper-Upscale and Upscale. Based on the Category, the Luxury Hotel market is segmented under the channels of Chain and Independent. By geography, the market covers the following Regions: North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).

 

 

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Luxury Hotel Market COVID-19 Insights:

Due to the rapid decline in travel brought on by the COVID-19 epidemic, the luxury hotel business experienced losses in 2020. The tourism and travel industries have suffered as a result of the COVID-19 pandemic epidemic. The growth of the luxury hotel business has been constrained by the implementation of social segregation, stay-at-home policies, and travel limitations on a global scale. According to a study from the American Hotel and Lodging Association 2021, hotel occupancy fell from 66.6% to around 40% as compared to the previous year. As a result, the pandemic is expected to cause a significant decline in the hotel market; however, the market is expected to resume its prior growth trajectory over the next several years. 

 

Luxury Hotel Market Dynamics:

Mainly, factors such as changing customer preferences towards luxury travel, experience and comfort, rising per capita income and improving living standards are driving demand in the luxury hotel market. important worldwide. Furthermore, the increase in the number of national and international events  also stimulates the demand for luxury hotels. Among all kinds of guests, celebrities, politicians, business tycoons, professionals are the standout visitors. 

 

The hospitality market is dynamic and relies on innovation in marketing activities to attract new customers. In addition, they offer a number of programs, membership cards, and incentives to retain old customers and exploit new customer segments. The global luxury hotel market is accepting tremendous momentum for innovation in new marketing practices while building a strong brand image and increasing investment in online promotion.

 

Luxury Hotel Market Trends:

Along with elegant accommodations, luxury hotels provide a range of additional amenities, including heated and fresh water swimming pools, barbecues, spas, gyms, bars, and other facilities that are specifically tailored to the needs and comfort of their guests. In order to stand apart from the competition, a few of these hotels additionally provide private gardens or areas on the beach, in addition to individual loungers. Progressive luxury hotel market trends are a result of the growth of the travel and tourism market, the increase in leisure travel preferences, and changes in the standard of living.

 

Although there is a sizable demand for luxury hotels in the hotel business, there are several challenges that are impeding the market's growth since it is a niche or high-end market due to its high tariff and price. The customers' desire to experience different hotels also prevents them from returning to the same place right away or often.

 

Luxury Hotel Market Segment Analysis:

By Room Type, Premium Services Offered at a Lower Cost to Help the Upscale Segment Dominate. The growing trend of low-cost luxury offerings is likely to increase footfall in upscale hotels, propelling it to a dominant position in the global market. The variety and quality of offerings available to visitors vary depending on the room type. According to visitor satisfaction, the following scores were assigned to hotel brands based on the visitor satisfaction level of their respective types: luxury: The Luxury Collection, upper-upscale: Wyndham Grand Hotels, and upscale: Hyatt Houses.

 

Players imparting resort offerings below the luxurious and upper-upscale segments are adopting numerous strategies, consisting of partnerships and acquisitions, which might be aimed closer to consolidating their market share. For instance, in February 2019, Best Western International, Inc. received World Hotels, an international resort emblem imparting resort collections below the upper-upscale and comfort segments. As a result, the upper-upscale and comfort segments are expected to grow at a faster rate than the upscale phase.

 

By Category, The chain segment will account for the highest market share, supported by more branded hotel chains. By category, the market is divided into series and independent. The widespread presence of chain hotels across the globe makes the hotel chain segment a large share of the market. Hotels in the chain segment are focusing on expanding their reach in different regions of the globe, strengthening their presence in lucrative regions. For example, Accor Hotels signed an agreement with Mantis Group, a travel and hotel company based in South Africa. Accor has acquired a 50% stake in the Mantis Group as part of a deal to strengthen Accor's presence in Africa. However, organizations such as Small Luxury Hotels of the World (SLH) are focusing on promoting smaller independent hotels, which is likely to fuel the growth of the independent hotel segment.

 

 

Luxury Hotel Market Regional Insights:

North America now holds a strong position in the luxury hotel market share thanks to rising US and Canadian expenditure on opulent lodging, which boosts income generation. According to the United States Travel Association's Travel and Tourism Overview, domestic travellers in the United States spent USD 242 billion on housing, which included hotels, motels, and vacation homes, among other things. Domestic and foreign leisure tourists spent over USD 792 billion, up 4.1%, because the population of the region has greater purchasing power and a growing propensity for leisure travel. These factors together drive the regional market.

 

The growth of upper-middle-class and middle-class people in the Asia Pacific area as well as rising living standards have made a substantial contribution to the market's growth. As a result, major investments are being made in the area by international hotel brands to increase their presence. For instance, to increase its footprint in the area, Hyatt Corporation announced intentions to open 21 new luxury hotels throughout Asia Pacific. Included in the new launch would be 7 Park Hyatt locations, 6 Grand Hyatt hotels, 6 Andaz brands, and 2 Alila resorts. Additionally, a growing presence of local competitors, such as Banyan Tree, Shangri-La International Hotel Management, and The Oberoi, among others, would boost market growth.

 

Luxury Hotel Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the Global Luxury Hotel market to the stakeholders in the industry. The report provides trends that are most dominant in the Global Luxury Hotel market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Global Luxury Hotel Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Global Luxury Hotel market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Global Luxury Hotel market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Global Luxury Hotel market.

 

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Global Luxury Hotel market. The report also analyses if the Global Luxury Hotel market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Global Luxury Hotel market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global Luxury Hotel market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global Luxury Hotel market is aided by legal factors.

 

Luxury Hotel Market Scope:

Luxury Hotel Market
Market Size in 2023	USD 160.35 Bn.
Market Size in 2030	USD318.49 Bn.
CAGR (2024-2030)	10%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Type Business Hotels Airport Hotels Suite Hotels Resorts
	by Room Type Luxury Upper-Upscale Upscale
	by Category Chain Independent
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Luxury Hotel Market Key Players:  

• Marriott International, Inc. (Maryland, U.S.)
• Mandarin Oriental Hotel Group (Quarry Bay, Hong Kong)
• The Indian Hotels Company Limited (Mumbai, India)
• InterContinental Hotels Group plc (Denham, U.K.)
• Kempinski Hotels S.A. (Geneva, Switzerland)
• Accor SA (Issy-les-Moulineaux, France)
• Shangri-La Asia Limited (Quarry Bay, Hong Kong)
• Four Seasons Hotel Limited (Toronto, Canada)
• Hilton Hotels & Resorts (McLean, U.S.)
• Hyatt Hotels Corporation (Chicago, U.S.)