Luxury Hotel Market Synopsis

Luxury Hotel Market Size Was Valued at USD 140.2 Billion in 2023, and is Projected to Reach USD 373.4 Billion by 2032, Growing at a CAGR of 11.5% From 2024-2032.

A luxury hotel is well-explained as being a type of hospitality business that is quite unique, and provides its guests with much more than simple necessities, but rather with unique services. These hotels are recognized by their strategic settings, which give them bragging rights to be in the best strategic areas within the city or sometimes globally-renowned areas. Interior layout and architecture are discreet, and the layouts of the spaces are carefully composed. In luxury hotels rooms are large with high quality furniture and superior tend of technology inbuilt. A very special attention is paid to individual approach, and due to the small size of the establishments and a large number of employees for each guest, all requests are immediately met. Some of the fine dining services include on-site provisions that are combined with delicious meals and served by talented cooks.

More features, they have today as soon as exclusive gymnasiums, spas, and sometimes even assistants for personal attendance. As these establishments are positioned to offer customer experiences that are safe, convenient and luxurious, they sell food and other services at a relatively higher price. Due to the greater detail attended and the high quality customer service, the luxury hotels separate themselves as the best place to be as regards comfort and class.

• Family vacation time or overdoing facilities in providing comfortable and luxurious accommodation for the business touring upper management have been the key elements that have mainly sustained the luxury hospitality. A hotel aims to deliver the best standard in terms of services and facilities which range from having an appealing interior and delicious meals, additional kinds of services including spas, gyms, swimming pools, laundry, among others to ensure that guests are attracted to the hotel. Especially, the expansion of the accommodation bookings online services has further fueled up the market multiplication. For Example, On, 10 February 2021, Marriott International launched a new appearance of its mobile application, Marriott Bonvoy that eliminates the older version’s problems and introduces new features like improved options to book, improved venticipation, and customization of earn and redeem of point options.
• Some measurable factors of the market that is expected to determine the tourism industry include the government regulations and policies on the luxury hotel markets and taxes have influence the market over the forecast period. In its effort to expand more space for foreign investors, the Albanian government has altered its tourism law for hotel classifications by easing the standards that a hotel has to meet to be classified and labelled as a luxury hotel. Pursuant to the new law, a 5 star hotel with a minimum investment of USD 17 million must employ at least fifty percent employees who are registered citizens of United States. The italics indicate that 4 billion would get tax exemptions on these investments. In addition, there are also terms stating that hotels that have obtained special status from the government would be paying taxes for ten years with some sort of exemption.
• Hence, the greater popularity of the luxury hotel providers offering significantly superior services with better booking options is expected to strengthen the luxury hotel market position.

Luxury Hotel Market Trend Analysis

Global Rise in Travel and Tourism Industry

• The tourism industry has been increasing steadily in the recent past around the world both in domestic and international travel tourism. According to the World Tourism Organization (UNWTO) released in 2022 covering the impact of COVID-19 on international tourist arrivals, estimated over 900 million international tourists in 2022 which is two times more than that of in 2021. Moreover, according to the latest global consumer survey of the World Travel & Tourism Council (WTTC) at the 22nd Global Summit held in Riyadh, Saudi Arabia in November, 2022 where more than 26000 consumers in 25 countries surveyed about travel plans for the new 12 months , 63% said they are concerned to arrange only a leisure trip while 27% intending to arrange three or more trips in the new 12 months.
• Also, due to the wide diversification of lodging packages with luxurious rooms and services, many customers have continued their stay hence boosting the sales revenues. Delivering various amenities that include free Wi-Fi offered in 5 star hotel rooms using sophisticated technology would attract the guests. Thus, the increasing trend of sports teams and spectators inclining more towards leisure & luxury travel has influenced the hospitality sector by increasing the demand for luxurious companies.

Rise in high class business tours

• Luxury service consumers are generally people with high purchasing power – the ever-growing population of the wealthy in societies across the world will create opportunities for market growth. In addition, the increase in the frequency of ‘‘Core‘‘ business travellers is attributed, first, to the fact that they are high net-worth travellers whose expectation when travelling includes seeking ‘‘High-end‘‘ travel experiences. Thus, there is a demand to satisfy the specific needs of individual and business travelers by providing luxury and personalized services and providing luxurious and splendid accommodations. OECD has reported in 2021, that 1%  Americans owned up to 40% of all the wealth that is available for investment. The cuts will reduce the budget by £1. 3 billion, equivalent to five per cent of the overall nation’s wealth. In addition, heightened hoteling services for corporate image, due to continual accommodation demands of business authorities staying at Luxury Airport Hotels or Luxury City Hotels conveniently established at the heart. For instance, 2L De Blend situated in Utrecht, Netherlands was awarded The World Luxury Hotel Awards under the LUXURY BUSINESS HOTEL category twice continuously in 2020. So, it can be defined that higher numbers of wealthy population groups and higher numbers of high class business tours would put forth the driving force for this market.

Luxury Hotel Market Segment Analysis:

Luxury Hotel Market is segmented based on Room Type, and Category.

By Room Type, luxury segment is expected to dominate the market during the forecast period

• By dividing the market in to room types it also has the separate category of luxury, upper- upscale and upscale. A growing service sector is driving the affordability factor of luxury services, thereby enhancing the flow of traffic in exclusive hotels to be a prime strategy in the global market. It can be seen that a variety of services is offered depending on the type of the room the guest chooses; however, the quality of service delivers does not differ significantly. As per the guest satisfaction survey of J. D. Power released in July 2020, the following rankings were given for hotel brands based on guest satisfaction level in their respective types, Luxury: We have the luxury collection, Upperupscale, Wyndham grand hotels, and the upscale; Hyatt houses.

By Category, Chain segment held the largest share in 2023

• Americas luxury hotel chain and independent analysed by category of market have the following view as shown below. That is why the segment of chain hotels has a large market share since the relatively high level of hotels’ saturation with such offers is observed in many regions of the world. Hotels in the chain segment are considered to implement further their networks across the several regions of the world, to increase pertinence within each area.
• For example, in December the same year, the fast-growing luxury hospitality chain Radisson Hotel Group targeted Africa after launching its Radisson Blu Mosi-oa-Tunya Livingstone resort in Zambia. The Group’s expectation for the region is to open 150 hotels by the year 2025.

Luxury Hotel Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• The situation in the luxury hotel industry in North America is vibrant since the trend is being propelled by social, economic, and technological factors. This is due to the sound economy and rising incomes that have seen the young generation, the millennials, and generation X spend higher income in travel. Apart from this another powerful trend in the area is the demand for experiential accommodations, and when guests look for an unforgettable experience. Besides, North America remains a hotspot for the purpose of business and conference tourism attracting numerous business people who always book high-end hotels.
• Furthermore, expansions are taking place due to technological changes as many North American consumers now demand smart rooms, touch-less booking options, and other technologies to be standard service offerings. Market trends such as social media trends and influencer marketing also play a considerable role in decision-makers’ choices in this market, especially among the youth. Furthermore, the trend of focusing on sustainability and wellness is appealing to the spectators and making them prefer luxury hotels for eco-friendliness and wellness facilities.

Active Key Players in the Luxury Hotel Market

• 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)
• Other Key Players

Key Industry Developments in the Luxury Hotel Market:

• 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.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. LUXURY HOTEL MARKET BY ROOM TYPE (2017-2032)
   1. LUXURY HOTEL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. LUXURY
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. UPPER-UPSCALE
   5. UPSCALE
7. LUXURY HOTEL MARKET BY CATEGORY (2017-2032)
   1. LUXURY HOTEL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. CHAIN
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. INDEPENDENT
8. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Positioning
      2. LUXURY HOTEL Market Share By Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2.  MARRIOTT INTERNATIONAL, INC. (U.S.)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
   3. HYATT HOTELS CORPORATION (U.S.)
   4. INTERCONTINENTAL HOTELS GROUP PLC (U.K.)
   5. FOUR SEASONS HOTEL LIMITED (CANADA)    
   6. HILTON HOTELS & RESORTS (U.S.)
   7. KEMPINSKI HOTELS S.A. (SWITZERLAND)
   8. ACCOR SA (FRANCE)
   9. THE INDIAN HOTELS COMPANY LIMITED (INDIA)
   10. MANDARIN ORIENTAL HOTEL GROUP (HONG KONG)
   11. SHANGRI LA INTERNATIONAL HOTEL MANAGEMENT LTD. (HONG KONG)
9. GLOBAL LUXURY HOTEL MARKET BY REGION
   1. OVERVIEW
   2. NORTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Room Type
      4. Historic And Forecasted Market Size By Category
      5. Historic And Forecasted Market Size By Country
         1. USA
         2. Canada
         3. Mexico
   3. EASTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Russia
         2. Bulgaria
         3. The Czech Republic
         4. Hungary
         5. Poland
         6. Romania
         7. Rest Of Eastern Europe
   4. WESTERN EUROPE
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Germany
         2. United Kingdom
         3. France
         4. The Netherlands
         5. Italy
         6. Spain
         7. Rest Of Western Europe
   5. ASIA PACIFIC
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Malaysia
         6. Thailand
         7. Vietnam
         8. The Philippines
         9. Australia
         10. New-Zealand
         11. Rest Of APAC
   6. MIDDLE EAST & AFRICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Turkey
         2. Bahrain
         3. Kuwait
         4. Saudi Arabia
         5. Qatar
         6. UAE
         7. Israel
         8. South Africa
   7. SOUTH AMERICA
      1. Key Market Trends, Growth Factors And Opportunities
      2. Key Manufacturers
      3. Historic And Forecasted Market Size By Segments
      4. Historic And Forecasted Market Size By Country
         1. Brazil
         2. Argentina
         3. Rest of South America
10. INVESTMENT ANALYSIS
11. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies