PUBLISHER: The Business Research Company | PRODUCT CODE: 1693199
PUBLISHER: The Business Research Company | PRODUCT CODE: 1693199
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 from The Business Research Company 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 size has grown strongly in recent years. It will grow from $106.78 billion in 2024 to $113.54 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to economic growth and rising disposable income, increasing global tourism, cultural shift towards experiential travel, rise in business travel, brand differentiation and innovation, strategic location and destination appeal, cultural and heritage tourism trends.
The luxury hotel market size is expected to see steady growth in the next few years. It will grow to $137.89 billion in 2029 at a compound annual growth rate (CAGR) of 5.0%. The growth in the forecast period can be attributed to continued economic prosperity, rising middle-class aspirations, sustainable and eco-friendly practices, health and wellness tourism, unique and authentic experiences, strategic partnerships and collaborations. Major trends in the forecast period include emphasis on sustainable and eco-friendly practices, integration of smart hotel technologies, rise in wellness and health-centric offerings, customized experiences and personalization, culinary innovation and michelin-starred restaurants.
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.
Leading companies in the luxury hotel market are focusing on developing innovative solutions, such as AI-powered hospitality management systems, to improve guest experiences, streamline operations, and boost profitability. AI-powered hospitality management solutions are sophisticated systems designed to optimize hotel operations and elevate the guest experience. For example, in February 2024, Hyper Nimbus, a US-based technology company, introduced a fully integrated AI-driven platform for hospitality management. This solution aims to enhance hotel operations by using various proprietary AI models. It consolidates fragmented hospitality systems into a unified AI-driven platform with four core features: predictive pricing for dynamic occupancy and rate optimization, sales and revenue management for growth strategy recommendations, real-time guest intelligence analysis to improve guest experiences, and a smart concierge service for 24/7 guest support.
Prominent companies in the luxury hotel sector are forming strategic partnerships to broaden their market reach. A strategic partnership involves a collaborative relationship between two or more organizations, combining their resources, expertise, and efforts to achieve shared goals. For example, in July 2023, Red Sea Global (RSG), a Saudi Arabia-based luxury hospitality company, joined forces with Equinox, a US-based luxury hospitality brand. The collaboration aims to develop the Equinox Resort Amaala, a luxury hotel centered on sports, fitness, and lifestyle in Saudi Arabia's Red Sea region. This partnership supports RSG's vision of providing exceptional wellness experiences in a pristine natural setting while enhancing the luxury and recreational offerings at Amaala Marina Village.
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 2024. 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.
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.
Luxury Hotel Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on luxury hotel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for luxury hotel ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The luxury hotel market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.