Luxury Hotel Market Report by Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts, and Others), Room Type (Luxury, Upper-Upscale, Upscale), Category (Chain, Independent), and Region 2024-2032

The global luxury hotel market size reached US$ 109.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 156.7 Billion by 2032, exhibiting a growth rate (CAGR) of 3.8% during 2024-2032. The market is experiencing steady growth driven by an expanding affluent middle class, especially in emerging economies, the rising global tourism and business travel across the globe, and continuous technological advancements with personalized services enhancing guest experiences.

Luxury Hotel Market Analysis:

Major Market Drivers: Considerable rise in disposable income and growth in the middle class within emerging economies drive demand for premium travel, therefore supporting the industry. The stable growth of tourism across the globe and business travel also supports market growth by demanding top-notch accommodation facilities.

Key Market Trends: Experiential travel is one of the emerging trends, with consumers seeking special and unique experiences that a luxury hotel offers. At the same time, technological developments in smart room features and digital concierge services are utilized by luxury hotels to meet the satisfaction of their guests.

Geographical Trends: According to the luxury hotel market research report, the markets for this sector in the Asia-Pacific region are growing at high speed, impelled by the middle class and the rise in disposable incomes. Other regions, such as North America and Europe, display a strong demand based on high-net-worth individuals and established tourism infrastructure.

Competitive Landscape: Major players are continuously inventing to make their brands distinctive through levels of service, memorable experiences, and technology enhancements. Some of the major players in the market include Accor, Belmond Ltd. (LVMH Moet Hennessy Louis Vuitton), Four Seasons Hotels Limited, Hyatt Hotels Corporation, InterContinental Hotels Group plc, ITC Limited, Jumeirah International LLC, Mandarin Oriental, Hotel Group Limited, Marriott International Inc, Rosewood Hotels and Resorts L.L.C. (Rosewood Hotel Group), Shangri-La International Hotel Management Ltd., and The Indian Hotels Company Limited.

Challenges and Opportunities: Some of the challenges in the market include economic fluctuations and geopolitical instability, which affect the travel patterns and consumption expenditure of consumers. On the contrary, opportunities exist in using technology to provide individualized services and exploring emerging markets with growing incomes and tourism that offer great growth potential.

Luxury Hotel Market Trends:

Rising disposable income and affluent middle-class growth

The market is majorly driven by increasing disposable income and growth in the affluent middle class, particularly across emerging economies. The growing population inclining towards premium experiences, including luxury accommodation due to the improving wealth distribution, is significantly supporting the market. This is prominent in regions, such as Asia-Pacific, whose rapid economic growth is resulting in a large middle class with a greater propensity for travel and leisure. A strong desire for unique and opulent experiences in travel fuels demand for luxury hotels, wherein consumers are inclined towards high-end services and amenities. Furthermore, such a demographic shift increases domestic and also international travel, thus promoting the luxury hotel market growth.

Increasing global tourism and business travel

The growing tourism and business travel across the globe acts as a significant market driver. Along with this, the increasing number of international tourist arrivals due to improved connectivity, easier visa norms, and increased middle-class spending power is also favoring the market. Business travel represents a significant segment of good accommodation demand in the form of corporate events, conferences, and meetings. It is within these needs that luxury hotels find a niche through their state-of-the-art facilities and locations, coupled with impeccable service. Moreover, the increasing number of high-net-worth individuals and related expenditure on travel in the pursuit of premium experience is creating a positive luxury hotel market outlook.

Technological advancements and personalized services

The rising consumer demand for seamless and enhanced in terms of tech experiences, such as online booking, mobile check-in, smart room features, and digital concierge services is providing an impetus to the market. Luxury hotels are investing in state-of-the-art technologies to meet and surpass such expectations of guests in order to improve their satisfaction and loyalty. It is also through data analytics that hotels can understand and second-guess the guests' tastes and preferences, hence highly tailoring services for guests to enjoy the accommodation. Furthermore, the ability to deliver customized experiences, including private room settings, and curated dining options is also acting as one of the major luxury hotel market drivers.

Luxury Hotel Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, room type, and category.

Breakup by Type:

Business Hotels

Airport Hotels

Suite Hotels

Resorts

Others

Business hotels represent the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes business hotels, airport hotels, suite hotels, resorts, and others. According to the report, business hotels accounted for the largest market share.

Business hotels are the largest segment of the market. This can be supported by the constant demand for good accommodation with a variety of facilities. Business-class hotels provide numerous facilities to business individuals, such as conference halls, high-speed internet, business centers, smooth connectivity, and significant business locations. According to the luxury hotel market dynamics, this segment is further enhanced by the overall rise in global business travel, itself caused by globalization and the expansion of multinational corporations. Another factor that enhances efficiency and convenience for corporate guests is that business hotels often offer various value-added services tailored to meet their needs, such as express check-in/check-out, meeting planning assistance, and exclusive lounge access. Additionally, the strategic locations of these hotels in city centers, along with their proximity to airports, significantly enhance their appeal. This ensures maximum productivity for business travelers while providing luxurious comfort. Besides this, the escalating demand for business hotels for business meetings and corporate events is positively influencing the luxury hotel market revenue.

Breakup by Room Type:

Luxury

Upper-Upscale

Upscale

A detailed breakup and analysis of the market based on the room type has also been provided in the report. This includes luxury, upper-upscale, and upscale.

Breakup by Category:

Chain

Independent

Chain represents the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the category. This includes chain and independent. According to the report, chain accounted for the largest market share.

Chain hotels form the largest category segment in the market, as such establishments can offer better service standards, brand recognition, and expansive global presence. In addition, these chain hotels have well-established reputations for their brands that speak volumes to guests concerning the quality and reliability expected of them, thus becoming the choice for numerous business and leisure travelers. Chain hotels frequently implement extensive loyalty programs that grant special privileges to guests, aiming to ensure repeat visits. Leveraging their significant resources, these hotels are able to invest substantially in marketing, technology, and staff training. This comprehensive approach enhances the guest experience uniformly across all locations. Having such a large network allows for an effective booking system and better management centered on the operation, thus aiding in making chain hotels at the top of the market. Furthermore, the luxury hotel market forecast indicates that strategic expansions and acquisitions are solidifying this dominance by further consolidating the market position.

Breakup by Region:

North America

United States

Canada

Asia Pacific

China

Japan

India

South Korea

Australia

Indonesia

Others

Europe

Germany

France

United Kingdom

Italy

Spain

Russia

Others

Latin America

Brazil

Mexico

Others

Middle East and Africa

North America leads the market, accounting for the largest luxury hotel market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for luxury hotel.

North America accounts for the largest regional segment of luxury hotels due to its strong economy, well-developed tourism infrastructure, and large number of high-net-worth individuals. Cities such as New York, Los Angeles, and Miami have a large volume of tourists. This is creating a steady stream of both business and leisure travelers seeking luxury accommodations. Along with this, the presence of internationally recognized luxury hotel brands with large loyalty programs, to ensure a loyal client base is providing impetus to the market. According to the luxury hotel industry overview, the technological developments in hotel services catering to guest experiences through the personalization of digital concierge services or smart room technologies are driving market growth. Additionally, massive investments in sustainable practices and renovations of a luxurious nature meet a growing demand for eco-friendly, modernly equipped accommodation. Therefore, North America retains its role as a vital player in the market, continuing to cater to the changing preferences of sophisticated travelers.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the luxury hotel industry include Accor, Belmond Ltd. (LVMH Moet Hennessy Louis Vuitton), Four Seasons Hotels Limited, Hyatt Hotels Corporation, InterContinental Hotels Group plc, ITC Limited, Jumeirah International LLC, Mandarin Oriental Hotel Group Limited, Marriott International Inc, Rosewood Hotels and Resorts L.L.C. (Rosewood Hotel Group), Shangri-La International Hotel Management Ltd., and The Indian Hotels Company Limited.

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

The key players in the market are expanding across the globe, particularly in emerging markets that hold high growth potential. They are investing substantially in developing technological capabilities to offer customized services, such as smart room features and digital concierge solutions, to meet changing traveler expectations. Furthermore, these companies are paying more attention to sustainability by adding ecological processes and green certificates into their offer to attract environmentally conscious consumers. Therefore, this is providing business opportunities in the luxury hotel market. Companies are also utilizing strategic collaboration and acquisitions to achieve portfolio and market position diversity. Furthermore, they are offering unique and culturally immersive experiences and exclusive amenities to attract an elite clientele seeking experience in both luxury and innovation.

Luxury Hotel Market News:

May 15, 2023: Global hospitality leader Accor, in collaboration with Erth Real Estate Company, announced its plan to open three new hotels in Riyadh, Kingdom of Saudi Arabia. This luxury hospitality community will be graced by a 230-key Raffles hotel, a 250-key Serviced Residence, and a 60-villa MGallery resort, all opening by the year 2027.

February 14, 2023: Global luxury leader Four Seasons Hotels and Resorts, together with Yuan Lih Construction Co., Ltd.-the developer and part of Taipei-based Yuan Lih Group-announced a plan for a new luxury hotel in the centre of Taiwan's capital. Accommodation will be offered with the finest events, wellness, and leisure possibilities, fitted out with a myriad of amenities throughout the 31-storey building. This tower design will capture natural light with large environments featuring high ceilings and expansive windows that offer fantastic views of the cityscape and mountains.

Key Questions Answered in This Report

• 1. What was the size of the global luxury hotel market in 2023?
• 2. What is the expected growth rate of the global luxury hotel market during 2024-2032?
• 3. What are the key factors driving the global luxury hotel market?
• 4. What has been the impact of COVID-19 on the global luxury hotel market?
• 5. What is the breakup of the global luxury hotel market based on the type?
• 6. What is the breakup of the global luxury hotel market based on the category?
• 7. What are the key regions in the global luxury hotel market?
• 8. Who are the key players/companies in the global luxury hotel market?