Luxury Hotel Market Overview

According to a new report published by Introspective Market Research, titled, “Luxury Hotel Market by Room Type, Category, and Region Global Market Analysis and Forecast, 2024-2032.

The Global Luxury Hotel Market was valued at $ 140.2 Billion in 2023 and is expected to reach $ 373.4 Billion by the year 2032, at a CAGR of 11.5%.

 Luxury hotels are unique hospitality businesses that offer unique services to guests. They are located in strategic areas, with discreet interior layouts and carefully composed spaces. Rooms are large and equipped with high-quality furniture and advanced technology. Each guest is given individual attention, with a small staff to meet all requests. Fine dining services include on-site provisions and delicious meals served by talented chefs. Luxury hotels also have exclusive gyms, spas, and personal assistants. They offer safe, convenient, and luxurious experiences, selling food and services at higher prices. The high-quality customer service and attention to detail make luxury hotels the best place to stay for comfort and class.

Luxury hospitality has been sustained by family vacation time and providing comfortable and luxurious accommodations for business travelers. Hotels aim to deliver the best standard of services and facilities, including appealing interiors, delicious meals, spas, gyms, swimming pools, and laundry. The expansion of accommodation bookings online services has further fueled market growth. Marriott International's mobile application, Marriott Bonvoy, has introduced new features like improved booking options, improved ventilation, and customization of earn and redeem points options. Government regulations and policies on luxury hotel markets and taxes also influence the market. The Albanian government has altered its tourism law to ease hotel classifications, allowing 5-star hotels with a minimum investment of USD 17 million to employ at least 50% US-registered employees. Hotels with special status pay taxes for ten years with exemptions. The popularity of luxury hotel providers with superior services and better booking options is expected to strengthen the luxury hotel market position.

According to Luxury Hotel, The Market is segmented into type, category, and region. By room type, the market is categorized into Luxury, Upper-upscale, and Upscale. By category, the market is categorized into Chain and Independent. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.). Robotics and automation solutions are revolutionizing the logistics industry by improving productivity. Automated mobile robots (AMRs) are widely used in warehouses and distribution centers for tasks like transportation, picking, and sorting. The tourism industry has seen steady growth globally, with the World Tourism Organization (UNWTO) estimating over 900 million international tourists in 2022, two times higher than in 2021. A global consumer survey by the World Travel & Tourism Council (WTTC) revealed that 63% of consumers are concerned about arranging only leisure trips, while 27% plan to arrange three or more trips in the next 12 months.

Luxury service consumers, with high purchasing power, are expected to drive market growth due to the growing wealthy population and increased frequency of "core" business travelers. These travelers seek high-end travel experiences and demand luxury and personalized services. The OECD reports that 1% of Americans own up to 40% of available investment wealth, reducing the budget by £1.3 billion. Increased corporate image demands for luxury hotels, such as 2L De Blend in Utrecht, Netherlands, are driving the market. The growing number of wealthy population groups and high-class business tours will drive this market.

Global Luxury Hotel Market, Segmentation

Luxury Hotel Market Segmented Based on Room Type, Category, and Region.

Room Type:

luxury segment is expected to dominate the market during the forecast period. The luxury hotel market is divided into luxury, upper-upscale, and upscale categories. A growing service sector is driving affordability in luxury services, enhancing traffic in exclusive hotels. Despite offering various services based on room type, service quality remains consistent. A J.D. Power guest satisfaction survey in July 2020 ranked hotel brands based on guest satisfaction levels in luxury, upper-upscale, Wyndham grand hotels, and upscale Hyatt houses.

Category:

The chain segment held the largest share in 2023.

The Americas luxury hotel chain has a large market share due to high hotel saturation in many regions. To increase pertinence, chains are expanding their networks globally. For example, the Radisson Hotel Group, a fast-growing hospitality chain, launched its Radisson Blu Mosi-oa-Tunya Livingstone resort in Zambia in December and plans to open 150 hotels in Africa by 2025.

Region:

North America is Expected to Dominate the Market Over the Forecast Period. The luxury hotel industry in North America is thriving due to social, economic, and technological factors. Rising incomes among the young generation, millennials, and Generation X have led to increased travel spending. Experiential accommodations are also in high demand, particularly for business and conference tourism. Technological changes, such as smart rooms and touchless booking options, are driving expansion. Social media and influencer marketing are also playing a significant role in the market, particularly among the youth. Sustainability and wellness are also attracting customers, leading to a preference for luxury hotels.

Some of The Leading/Active Market Players Are-

• Marriott International, Inc. (U.S.)
• Hyatt Hotels Corporation (U.S.)
• InterContinental Hotels Group plc (U.K.)
• Four Seasons Hotel Limited (Canada)    
• Hilton Hotels & Resorts (U.S.)
• Kempinski Hotels S.A. (Switzerland)
• Accor SA (France)
• The Indian Hotels Company Limited (India)
• Mandarin Oriental Hotel Group (Hong Kong)
• Shangri La International Hotel Management Ltd. (Hong Kong) and Other Active Players

Key Industry Developments

• In June 2024, Marriott International announced three deals to bring iconic American luxury properties to the Marriott Bonvoy portfolio later this summer. Marriott International, Inc. announces plans to transform three iconic luxury properties in the United States into the Marriott Bonvoy portfolio of brands. Located in some of the country's most sought-after destinations, The Resort at Pelican Hill, Turtle Bay Resort, and the Midtown New York luxury hotel are slated to join Marriott Bonvoy's luxury brands this summer.
• In September 2023, Marriott International and Cathay deepen strategic partnerships to deliver enriched travel benefits. Marriott International, Inc. announced the expansion of its award-winning travel program, Marriott Bonvoy, through a partnership with Cathay's frequent flyer program, Cathay Membership. Eligible members receive exclusive access to membership benefits of both programs through limited game offers and accelerated points earning, which enables a seamless two-way conversion between miles and points.

Key Findings of the Study 

• Chains dominate the market due to extensive global networks and strategic expansions.
• North America is expected to lead the market growth, driven by rising incomes, technological advancements, and high demand for experiential accommodations.
• Sustainability and wellness trends are influencing consumer preferences towards luxury accommodations.