Global Luxury Hotel Market Size, Share, Growth Analysis, By Type (Business Hotels, Resorts & Spa), By Category Type (Chain, Independent), By Room Type (Luxury, Upscale), By Region -Industry Forecast 2024-2031
Report ID:
SQMIG25O2025 |
Region:
Global |
Published Date: November, 2024
Pages:
175
|Tables:
0
|Figures:
0
Luxury Hotel Market Insights
Global Luxury Hotel Market size was valued at USD 93.6 Billion in 2022 and is expected to rise from USD 97.44 Billion in 2023 to USD 134.38 Billion by 2031, at a CAGR of 4.1% during the forecast period (2024–2031).
Rapidly increasing global tourism activity is projected to primarily drive up the demand for luxury hotels over the coming years. Rising disposable income of people, low costs of airplane tickets, and increasing desire for travel fueled by social media are key factors that are expected to bolster luxury hotel market growth in the future. Growing demand for experiential travel experiences and the expansion of luxury hotel businesses into emerging countries are also expected to boost revenue generation across the study period. Increasing interest of people in traveling while working due to rise in the number of remote workers is also expected to present new opportunities for luxury hotels going forward. Growth in business travel and Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism are also expected to boost revenue generation for luxury hotel companies in the long run. On the contrary, high costs of operation, economic instability, travel restrictions, and intense market competition are slated to be key restraints slowing down the demand for luxury hotels through 2031and beyond.
Market snapshot - 2024–2031
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Luxury Hotel Market Segmental Analysis
The luxury hotel market is segmented based on type, category type, room type, and region. Based on type, the market is sub segmented into the business hotels, airport hotels, holiday hotels, resorts & spa, and others. Based on category type, the market is sub segmented into chain and independent. In terms of room type, the market is segmented into luxury, upper-upscale, and upscale. By Region, the market is segmented into North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa.
Analysis by Type
Business hotels are expected to hold a prominent chunk of the global luxury hotel market share going forward. Increasing international travelers with business motives and rapid expansion of the Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism industry are expected to help the dominance of this segment. The surge in popularity of the remote work culture and growing number of digital nomads around the world are boosting the revenue generation potential of business hotels. The availability of state-of-the-art workspaces for business activities in luxury hotels is helping this segment maintain its dominant stance. High demand for business amenities along with leisure is also boosting business for this segment.
On the other hand, the demand for resorts and spas is projected to increase at a steady pace over the coming years. Increasing interest of people on going away for mental peace and a break from usual life is projected to help create new opportunities for resorts and spa in the future. The rising popularity of wellness tourism and rising interest in relaxation activities among travelers are also expected to bolster the demand for resorts and spas in the long run. Availability of a wide variety of relaxation treatments and activities in resorts for people of all age groups is also estimated to create an opportune setting for luxury hotel companies investing in this segment.
Analysis by Category Type
Chain luxury hotels are expected to bring in the most revenue in the global luxury hotel industry landscape. High availability of capital along with an established name in the hospitality business allows luxury hotel chains to flourish on a global level. Continuous investments in the expansion of business across the world by hotel chains and high spending on marketing are also expected to maintain the dominance of this segment going forward. The launch of new establishments in different regions is also expected to boost business growth via luxury hotel chains. Stunning locations and availability of personalized services are helping luxury hotel chains bring in the most revenue going forward.
Meanwhile, the demand for independent luxury hotels is expected to rise at a notable pace in the future. High emphasis on quality and creative and innovative approach for customers are some key advantages of independent luxury hotels that are boosting their popularity around the world. Availability of dynamic pricing and better rewards for customer loyalty are also expected to boost the clientele for independent luxury hotels in the future. Rising demand from travelers for custom experience beyond the standard one is also creating new business scope for independent luxury hotels going forward.
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Luxury Hotel Market Regional Insights
North America is expected to hold sway over the global luxury hotel market outlook in the future. The presence of multiple luxury hotels in this region and high domestic as well as international tourism activity are expected to maintain its dominance in this region. Growing spending on leisure activities and increasing number of international travelers visiting unique locations in Canada and the United States are bolster the popularity of luxury hotels in this region. High spending potential of North American people and their preference for luxury are also expected to boost the business of luxury hotels in the long run.
On the other hand, the demand for luxury hotels in the Asia Pacific region is expected to rise at a rapid pace across the study period. Increasing disposable income, growing upper middle-class population, rising social media influence, and evolution of consumer preferences are key factors driving the demand for luxury hotels in this region. Expansion of prominent luxury hotel chains in this region and rising number of independent luxury hotels are also expected to create new opportunities going forward. China, India, South Korea, Australia, and Japan are slated to remain the most opportune markets going forward.
- Largest
- Fastest
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Luxury Hotel Market Dynamics
Drivers
- Increase in Global Tourism Activity
Travel and tourism industry has been flourishing recently as disposable income of people increases and tourism becomes more accessible to a larger population. Cheap air fares and influence of social media are other factors that are contributing to the rapidly expanding global tourism activity thereby also favoring luxury hotel market growth.
- Demand for Immersive and Experiential Travel Experiences
As more and more people travel, the need for unique experiences is increasing rapidly. From curated cultural activities to bespoke wellness retreats, experiential travel allows luxury hotels to stand out and make travelling a whole new experience for customers. As travelers look for more than accommodation in hotels the popularity of luxury hotels is expected to rise rapidly in the future.
Restraints
- High Costs of Operation
Operating luxury hotels is a herculean task as it involves high investments in staff and equipment to maintain their premium feel. High-quality staff training, exclusive amenities, and constant property upgrades are some key areas where investments are high and thereby slow down the global luxury hotel market outlook as well.
- Economic Instability
Economic instability around the world is expected to severely hurt the business of luxury hotels in the long run. Inflation and geopolitical tensions significantly influence travel and tourism business around the world, which in turn translates to low number of travelers ultimately slowing down revenue generation for luxury hotels and normal hotels as well.
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Luxury Hotel Market Competitive Landscape
Expansion of hotel chains and establishment of new hotels in different parts of the world are expected to be prime priorities of luxury hotel companies. Providing additional services apart from good accommodation is projected to help luxury hotel companies stand out from the competition. Investing in training of staff and acquisition of unique locations for hotels are also expected to be prominent strategies for luxury hotel companies going forward.
Top Player’s Company Profiles
- Four Seasons Holdings Inc.
- The Luxe Life Hotel
- Intercontinental Hotels Group
- Marriott International Inc.
- Hyatt Corporation
- ITC Hotels Limited
- Shangri-La International Hotel Management Ltd.
- Jumeirah International LLC
- The Indian Hotel Companies Limited
- Accor
- Belmond Management Limited
- Mandarin Oriental Hotel Group Limited
- Rosewood Hotel Group
- Radisson Hotel Group
Recent Developments
- In October 2024, Hyatt, a leading name in the luxury hotel and hospitality business announced the launch of a new venue for events in Mumbai, India. The Grand Showroom is a luxury venue capable of being customized as per customer requirements for high-profile events such as parties and marriages
- In November 2024, InterGlobe, a leading name in the hospitality business from India announced the launch of a new luxury hotel under its Miiro brand in the European region. The launch of The Mansard in Gstaad, Switzerland is aimed at providing alpine luxury to its customers.
- In November 2024, IHG, a renowned British multinational hospitality organization signed an agreement with Adyar Gate Hotels. Under this agreement the companies are expected to launch InterContinental Kodaikanal Resort in 2028 to expand their presence in the South Indian region.
Luxury Hotel Key Market Trends
- Eco-Luxury and Sustainability: Luxury hotel companies should focus on incorporating sustainability in their business to attract eco-conscious customers going forward. Acquiring green certifications, utilizing renewable energy, and implementing waste-reduction programs can help luxury hotels stand out from their competition and generate new business scope going forward. This luxury hotel market trend is expected to become more prominent as emphasis on sustainability rises globally.
- Hybrid Hospitality Models: Luxury hotels can focus on developing hybrid hospitality model-based hotels to boost revenue generation in the future. Combining work and leisure experiences (workcations) is a major trend among luxury hotels as remote work becomes a mainstream trend and people are migrating to different locations to work and enjoy at the same time.
Luxury Hotel Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing tourism activity around the world and rising disposable income of people are expected to primarily augment the demand for luxury hotel over the coming years. However, high costs of operations and economic instability are slated to be key constraints for luxury hotel market development in the future. North America is expected to remain the top market for luxury hotel companies owing to high domestic and international tourism activity coupled with high spending potential of consumers. Incorporation of sustainability and development of hybrid hospitality models are slated to create new opportunities for luxury hotel companies in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 93.6 Billion |
| Market size value in 2031 | USD 134.38 Billion |
| Growth Rate | 4.1% |
| Base year | 2023 |
| Forecast period | 2024–2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Luxury Hotel Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Luxury Hotel Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Luxury Hotel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Luxury Hotel Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Luxury Hotel Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Luxury Hotel Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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