The global luxury hotel market was valued at USD 114.2 Billion in 2024. It is projected to grow to USD 157.7 Billion by 2033, exhibiting a CAGR of 3.61% during the forecast period from 2025 to 2033. North America dominates the market with a 37.1% share in 2024. Growth is driven by rising disposable incomes, expanding affluent middle classes, increasing global tourism and business travel, and enhanced personalized services powered by technology. The study provides a detailed analysis of the industry, including the luxury hotel market trends, share, growth, size, and industry growth forecast.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Luxury Hotel Market Key Takeaways

• Current Market Size: USD 114.2 Billion in 2024
• CAGR: 3.61% during 2025-2033
• Forecast Period: 2025-2033
• North America holds a dominant share of over 37.1% as of 2024.
• Business hotels lead the type segment with a 33.8% share.
• Chain hotels form the largest category segment due to brand recognition and loyalty programs.
• Asia Pacific region sees robust growth propelled by rising disposable incomes, especially in China, India, and Japan.
• The United States accounts for 86.30% of the North America luxury hotel market.

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Market Growth Factors

Emerging economies' disposable income increase and affluent middle-class growth are expected to drive luxury hotel market growth. For instance, as of 2021, 432 million middle-class people reside within India, accounting for 31% of the total population of the country. This has supported an increase in domestic tourism, inbound tourism, and demand for hotels and other upscale accommodations. The Asia-Pacific region has benefitted particularly from this trend in the growth and distribution of wealth.

A growing number of global tourists and business travelers plays a key role within driving the luxury hotel market. In 2024, the estimated global business travel market size reached USD 1.1 Trillion. Luxury hotels benefit from more international tourist arrivals on account of better flights, easier visa access, and greater purchasing power among middle-class guests.

Technology and Personalization: growth in technology-driven smooth experiences is expected to be a major driver. Key areas of focus include online booking services, mobile check-in, smart and connected rooms, and digital concierge services. A Trends Global Survey found that 80% of travelers look to book all aspects of their travel online. Big data helps luxury hotels deliver personalized experiences like private settings in rooms and restaurants. The goal seeks to satisfy customers better and retain them and strengthen the luxury hotel segment.

Market Segmentation

By Type:

• Business Hotels: Largest segment (33.8% market share in 2024), offering facilities such as conference halls, high-speed internet, business centers, and strategic city-center locations. Tailored value-added services and proximity to airports enhance their appeal for corporate travelers.
• Airport Hotels: Not provided in source.
• Suite Hotels: Not provided in source.
• Resorts: Not provided in source.
• Others: Not provided in source.

By Room Type:

• Luxury: Extravagant and exclusive with tailored services, upscale furnishings, private pools, gourmet dining, and spa privileges targeting wealthy travelers seeking unique cultural and concierge experiences.
• Upper-Upscale: Intermediate luxury focusing on quality services with business centers and fitness facilities, suitable for both business and leisure travelers. Located in prominent areas catering to family vacations and business gatherings.
• Upscale: Offering premium comfort and facilities like free Wi-Fi and dining, targeting mid-level business travelers and families, commonly near transportation hubs and suburban areas with competitive pricing.

By Category:

• Chain: Largest category led by recognized brands offering uniform quality, loyalty programs, and extensive global presence. Chains invest heavily in marketing, technology, and staff training, ensuring operational efficiency and customer retention.
• Independent: Not provided in source.

Regional Insights

North America creates the largest share of total revenue in the luxury hotel market in 2024 with 37.1%. A strong economy, established tourism infrastructure, and large high-income populations support the North American luxury hotel market. The United States has 86.30% market share and major cities like New York, Los Angeles, and Miami are popular spots for business travel and also leisure travel. Technology and sustainability also drive the market.

Recent Developments & News

• December 2024: OYO, supported by SoftBank Group, launched the luxury hotel brand SUNDAY internationally, debuting in the UK and UAE with the SUNDAY Lansbury Heritage in London.
• October 2024: Radisson Hotel Group introduced Svelte Delhi, a 108-room property under Radisson Individuals in Delhi, catering to business and leisure travelers with amenities like meeting spaces and a rooftop pool.
• September 2024: M3M India and Oravel Stays (OYO parent) agreed on a 220-key premium hotel under the SUNDAY brand in Gurugram, aiming to develop 15 lakh sq ft of luxury hospitality space comprising 1,000 keys across Gurugram and Noida.

Key Players

• Accor
• Belmond Ltd. (LVMH Moët Hennessy Louis Vuitton)
• Four Seasons Hotels Limited
• Hyatt Hotels Corporation
• InterContinental Hotels Group plc
• ITC Limited
• Jumeirah International LLC
• Mandarin Oriental Hotel Group Limited
• Marriott International Inc
• Rosewood Hotels and Resorts L.L.C. (Rosewood Hotel Group)
• Shangri-La International Hotel Management Ltd.
• The Indian Hotels Company Limited

Customization Note:

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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