Luxury Hotel Global Market Report 2024

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 $100.14 billion in 2023 to $106.78 billion in 2024 at a compound annual growth rate (CAGR) of 6.6%. The growth observed in the historical period can be attributed to several factors, including economic growth and rising disposable income, the upward trend in global tourism, a cultural shift towards experiential travel, an increase in business travel, emphasis on brand differentiation and innovation within the hospitality sector, the strategic appeal of locations and destinations, and the influence of cultural and heritage tourism trends.

The luxury hotel market size is expected to see strong growth in the next few years. It will grow to $131.49 billion in 2028 at a compound annual growth rate (CAGR) of 5.3%. The anticipated growth in the forecast period can be attributed to ongoing economic prosperity, the increasing aspirations of the middle class, a focus on sustainable and eco-friendly practices within the hospitality industry, the rise of health and wellness tourism, the demand for unique and authentic travel experiences, and the fostering of strategic partnerships and collaborations. Major trends expected in the forecast period include a continued emphasis on sustainable and eco-friendly practices, the integration of smart hotel technologies, a growth in wellness and health-centric offerings, an emphasis on customized experiences and personalization for guests, and a focus on culinary innovation, including the presence of Michelin-starred restaurants in luxury hotels.

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.

The high operating costs associated with luxury hotels are expected to pose a limitation on their growth. Operating costs in luxury hotels encompass ongoing expenses essential for the day-to-day operations of the hotel business. These costs contribute to maintaining the quality of service and amenities that define a luxury establishment. High operating costs often translate into well-trained and skilled staff, elevated service standards, and the ability to offer unique and personalized experiences to guests. This, in turn, enhances the prestige of the luxury hotel, attracting discerning customers willing to pay a premium for exceptional services. For instance, as of August 2023, according to FinModelsLab, a Ukraine-based financial advisory firm, luxury hotels in the United States typically allocate an average of $2,196 per available room annually for utilities and energy expenditures. The specific amount may vary based on factors such as the hotel's size, geographical location, and amenities provided. Consequently, these high operating costs present a challenge to the growth of the luxury hotel market.

Major players in the luxury hotel market are dedicated to enhancing the guest experience through the implementation of various technological advancements to create a seamless digital welcome experience. The guest experience encompasses the overall satisfaction of a guest throughout their interaction with a hotel or other hospitality service provider, spanning all touchpoints from the booking process to the post-stay experience. As an illustration, in October 2021, Hilton Worldwide Holdings Inc., a prominent US-based hospitality company, introduced several technology enhancements aimed at improving the guest experience and ensuring a more streamlined travel experience across its 18 world-class hotel brands. These enhancements include features such as digital key sharing, automated complimentary room upgrades, confirmed connecting rooms, and improved booking options. Gold and Diamond Hilton Honors members are provided with 72-hour notices of potential upgrades, enabling them to promptly select their upgraded accommodation through the Hilton Honors app. These additions complement the recently introduced Confirmed Connecting Rooms feature, allowing individuals to swiftly and effortlessly confirm at least two connecting rooms during the booking process.

Major companies within the luxury hotel market are prioritizing the enhancement of the guest experience by leveraging various technological advancements to improve the digital welcome experience. The guest experience encompasses a guest's overall satisfaction throughout their interaction with a hotel or other hospitality service provider, covering all touchpoints from the booking process to the post-stay experience. As an example, in October 2021, Hilton Worldwide Holdings Inc., a prominent US-based hospitality company, rolled out multiple technology enhancements designed to elevate the guest experience and create a more seamless travel experience across its 18 world-class hotel brands. These enhancements include features such as digital key sharing, automated complimentary room upgrades, confirmed connecting rooms, and enhanced booking options. Gold and Diamond Hilton Honors members are provided with 72-hour notices of potential upgrades, enabling them to promptly select their upgraded accommodation through the Hilton Honors app. These additions complement the recently introduced Confirmed Connecting Rooms feature, allowing individuals to swiftly and effortlessly confirm at least two connecting rooms during the booking process.

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 2023. 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 2024 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.

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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 market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Business Hotels; Airport Hotels; Suite Hotels; Resorts; Other Types
• 2) By Room Type: Luxury; Upper-Upscale; Upscale
• 3) By Category: Chain; Independent
• Companies Mentioned: Jardine Matheson Holdings Ltd; Marriott International, Inc.; Hilton Hotels & Resorts; Hyatt Hotels Corporation; W Hotels
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.