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Luxury Hotel Market To Reach USD 51.77 Billion By Year 2032

The Luxury Hotel Market was worth USD 140.28 billion in 2023. As such, the forecast is that the market is expected to reach USD 369.36 Billion by 2032 with a CAGR of 11.5% over the period from 2024 to 2032.

11-07-2024
shashidhar kotian
Service Industry
Pristine Intelligence LLP

According to a new report published by Pristine Intelligence LLP, titled, “Luxury Hotel Market by Type, Room Type, Category: Global Opportunity Analysis and Industry Forecast, 2024–2032,” the Luxury Hotel Market was worth USD 140.28 billion in 2023. As such, the forecast is that the market is expected to reach USD 369.36 Billion by 2032 with a CAGR of 11.5% over the period from 2024 to 2032. A luxury hotel is a type of lodging that focuses on giving visitors an extraordinary experience rather than just offering standard comforts. These hotels are distinguished by their ideal settings, which are frequently found in posh areas or well-known tourist attractions. There is sophistication and elegance in the architecture and interior design. Luxurious hotels provide large, well-furnished rooms with state-of-the-art equipment.

The Global Luxury Hotel Market is segmented into Type, Room Type, Category, and region. By Type, the market is categorized into Business Hotels, Airport Hotels, Suite Hotels, Resorts, and Others. By Room Type, the market is categorized into Luxury, Upper-Upscale, and Upscale. By Category, the market is categorized into Chain, Independent. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).

Rising disposable income and global tourism growth are pivotal drivers of the luxury hotel market. As disposable incomes increase, particularly in emerging markets such as China and India, more consumers can afford premium travel experiences. For example, in 2022, China's middle-class population reached over 400 million, significantly boosting domestic and international luxury travel. This trend continued into 2023 and is expected to grow further in 2024, with an estimated increase of 10% in disposable income among affluent travelers globally. This rise in wealth enables more people to indulge in luxury accommodations, driving demand for high-end hotels.

The luxury hotel market is seizing strategic opportunities by expanding into emerging markets and targeting the corporate and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments. In 2022, emerging economies such as China and India saw notable economic growth and rising disposable incomes, fostering a burgeoning middle class eager to experience luxury travel. For instance, China's luxury market has been expanding rapidly, with significant investments in hospitality infrastructure to accommodate the growing demand for high-end accommodations. This trend continued into 2023 and is projected to strengthen further in 2024, with emerging markets expected to contribute substantially to the global luxury hotel sector's growth.

Global Luxury Hotel Market, Segmentation

Global Luxury Hotel Market Segmented on the basis of Type, Room Type, Category. And region

Type:

The Resorts segment is poised to dominate the luxury hotel market during the forecast period, driven by increasing demand for leisure and experiential travel. Resorts offer expansive grounds, diverse amenities, and immersive experiences that appeal to affluent travelers seeking relaxation and recreation. According to recent industry reports, resorts have shown resilience and growth, particularly in tropical destinations like the Maldives, the Caribbean, and Southeast Asia, where luxury beach resorts attract high-spending tourists.

Room Type:

The Upper-Upscale segment emerged as the leader in the luxury hotel market by room type, holding the largest share at 39.11%. This segment caters to discerning travelers seeking elevated comfort and premium amenities without reaching the ultra-luxury price point. Upper-upscale hotels typically offer spacious rooms, high-quality dining options, and enhanced guest services, appealing to both leisure and business travelers. The segment's dominance reflects a growing preference among travelers for upscale accommodations that provide a balance between luxury and value.

Region:

The luxury hotel industry in North America is experiencing robust growth, propelled by a convergence of social, economic, and technological factors. Increased spending on luxurious accommodations in both the U.S. and Canada has significantly boosted revenue generation, establishing North America as a dominant region in the global hospitality market. According to data from the American Hotel and Lodging Association (AHLA), revenues from hotel room services in the U.S. alone reached USD 168.0 billion in 2022, with a notable hotel occupancy rate of 63.4%. This growth is driven by a rising preference for leisure travel among North American consumers, supported by their higher disposable incomes and propensity for luxury experiences.

Some of the leading Luxury Hotel Market players are

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

 Key Industry Developments

  • In April 2024: Capella Sydney was named one of the top new hotels of the year by Travel + Leisure 2024 It List, reaffirming its status among the world’s premier luxury accommodations. Following a meticulous seven-year restoration, Capella Sydney opened in March 2023, offering unparalleled luxury in Sydney’s iconic harbor city. Situated near Circular Quay, the Sydney Opera House, and Sydney Harbour Bridge, Capella Sydney sets a new standard with exceptional cuisine and cultural immersion. Housed in the historic Department of Education building, meticulously restored by Pontiac Land, Capella Sydney celebrates Sydney’s heritage and modern elegance.

 Key Findings of the Study / Key Industry Developments. 

  • By Type, the Resorts segment is expected to dominate the market during the forecast period.
  • By Room Type, the Upper-Upscale segment held the largest share of 39.11 in 2023.
  • North America as a dominant region in the global hospitality market. According to data from the American Hotel and Lodging Association (AHLA), revenues from hotel room services in the U.S. alone reached USD 168.0 billion in 2022, with a notable hotel occupancy rate of 63.4%.
Pristine Intelligence LLP

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