Expansion of Travel and Tourism Sector: New Heights in the Hospitality Management by Top Luxury Hotel Brands

Tourists are increasingly choosing to spend their time in luxury when on vacation. They view it as a vacation experience that is utterly rejuvenating and tranquil. Families on vacation and business travelers’ desire for luxury lodging has largely sustained the luxury hotel industry. Luxury hotels are constantly improving the quality of what they have to offer. There is a tendency for sports teams and spectators attending the tournament from different places to reserve accommodations in these hotels, contributing to increased reservations. The rapid expansion of the travel and tourism sector and rapid changes in the standard of living are the key drivers boosting industry progress.

As per a report by Fortune Business Insights™, the market for luxury hotel reached USD 140.28 billion in 2023 and is set to reach USD 369.36 billion by 2032 with a CAGR of 11.5% during 2024-2032. The market size stood at USD 154.32 billion in 2024.

Fortune Business Insights™ Profiles Top 5 Luxury Hotel Brands

1) Marriott International, Inc.

Headquartered in the U.S., Marriott International, Inc. is the top player in the luxury hotel industry. This group made USD 20.77 billion in net revenues in 2022. As of 2022, the company is working with almost 8,288 hotel properties and 1.52 million hotel rooms across various countries globally. The business provides accommodations for different room types, including luxury rooms, upper-upscale rooms, and upscale rooms. It has allocated approximately 40% of its rooms to high-value luxury and finest brands. In 2022, Marriott International, Inc. added over 65,000 hotel rooms to increase business in 138 countries and regions. Almost 39% of the company’s gross room additions in a similar year were in the U.S. and Canada. The company is intensifying its hospitality base broadly by inaugurating newer hotels in emerging countries, including China and Southeast Asia. In 2023, the company declared plans to start 47 hotels in greater China. These hotels will include about 12,000 rooms. With this expansion, the company is expected to increase its guest accommodation portfolio of luxury, superior, and select service brands in the region.

2) Hilton Hotels & Resorts

Founded in 1919 and based in the U.S., Hilton Hotels & Resorts is the second-largest player in the top luxury hotel brands. In 2022, the business’s net revenue came to USD 8.77 billion. The company welcomed 200 guests across the globe in 2023 and displayed a portfolio of 7,165 properties with 1.12 million rooms. The company emphasizes acquisitions of luxury hotel operators to boost its position in the luxury and upper upscale hotel sector segments. For instance, in August 2021, Hilton Hotels & Resorts purchased Diamond Resorts International, Inc. to add the partner company’s 154 resorts and luxury properties to its portfolio.

3) Hyatt Hotels Corporation

Being the third-largest player in the luxury hotel sector, Hyatt Hotels Corporation generated USD 5.89 billion in net revenues in 2022. In December 2022, the company had 304,108 rooms spread across 1,263 hotels and all-inclusive resorts across the globe in its portfolio. Park Hyatt, Grand Hyatt, Hyatt Regency, and others are among its primary brands. The business is divided into four hotel segments: luxury, upper-upscale, vacation ownership, and upscale. As of March 2023, resort, luxury, or lifestyle rooms make upto 40% of the company’s portfolio mix. To reach a wider audience in the international market, the company concentrates on expanding its distribution network. In April 2023, Hyatt Hotels Corporation purchased Mr & Mrs Smith, a travel booking platform situated in London, U.K., in an effort to expand its clientele throughout Europe. In February 2023, the business secured Dream Hotel Group’s lifestyle management platform to introduce Dream Hotels, The Chatwal, and Unscripted Hotel brands into its portfolio.

4) InterContinental Hotels Group plc

The U.K.-based fourth biggest player in the global luxury hotel industry is InterContinental Hotel Group plc. The company’s hospitality services brought in a net revenue of USD 3.89 billion.   As of 2021, 10% of the company’s 880,000 hotel rooms fell into the luxury category, 22% into the upscale segment, and 68% into the midscale/upper midscale segment. Six Senses, Regent, Voco Hotels, avid hotels, and Atwell Suites are among the brands under the company’s portfolio. To improve its brand image, it is concentrating on forming alliances with other hotel chains. In November 2022, to expand its lodging offerings, InterContinental Hotels Group plc. entered into a long-term strategic partnership with Iberostar Group, bringing the partnered company’s 70 hotels to its accommodation portfolio. These hotels are situated in various countries, including Mexico, Jamaica, Brazil, and Spain. In July 2023, InterContinental Hotels Group plc, associated with Hotel Indigo Satu Mare, will inaugurate its three hotel properties in Romania by the end of 2025.

5) Kempinski Hotels S.A

Established in 1897, a Germany-based company named Kempinski Hotels S.A. is the fifth-largest participant in the luxury hotel sector. The business concentrates on making partnerships with management and hospitality organizations to boost its portfolio of hotel products globally. For instance, in December 2022, the company performed two new luxury hospitality and residential projects in Turkey to accelerate its business there.  Moreover, in 2022, the company approved a management contract to open Kempinski Residences in the 30,000 sq.m. lush green valley site in Istambul.

With Customer Convenience and Immersive Experiences, Luxury Hotel Brands are All Set to Build a Strong Brand Identity

Innovation in new marketing campaigns helps the industry establish a strong brand identity and boost internet advertising spending. The industry is being greatly impacted by technological advancements. Smart rooms, high-speed internet, and advanced mobile applications are quickly becoming standard requirements for visitors. These hotels are using data analytics to learn about customer behavior, which allows for better service optimization and marketing. Top luxury hotel brands are establishing reliable connections with high-end hotel owners to secure long-term partnerships. The increasing acclaim of guests for cutting-edge technologies is pushing luxury hotels to provide a smooth and inventive visitor experience.