"Assisting You in Establishing Data Driven Brands"

Luxury Hotel Market Size, Share & COVID-19 Impact Analysis, By Room Type (Luxury, Upper-upscale, and Upscale), Category (Chain and Independent), and Regional Forecast, 2023-2030

Region : Global | Format: PDF | Report ID: FBI104408

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global luxury hotel market size was valued at USD 128.54 billion in 2022 and is anticipated to grow from USD 140.28 billion in 2023 to USD 293.61 billion by 2030, exhibiting a CAGR of 11.1% growth during the forecast period of (2023-2030).


Luxurious stays during family vacation time or offering over-the-top facilities for upper management executives during business tours have primarily supported the luxury hospitality industry. Hotels strive to showcase the highest quality of services and features, from interior designing and food offerings to extended types of services, such as spas, gyms, swimming pools, and laundry, among others, to attract guests.


The emergence of online accommodation booking services has further accelerated market proliferation. For instance, on 10th February 2021, Marriott International released another version of its mobile app, Marriott Bonvoy, with new features such as better booking options, enhanced personalized experiences, and customizations in earning and redeeming points. Therefore, the increased demand for luxury hotels’ premium services with improved booking facilities is anticipated to consolidate the luxury hotel market share.


COVID-19 IMPACT


Hospitality Market to Experience Severe Downturn with the Emergence of COVID-19


The rapid spread of the coronavirus infection led to strict lockdown rules in most countries worldwide at the start of the year 2020. Physical distancing norms and stay-at-home orders resulted in the closing down of hotels, restaurants, and spas. Several conferences, events, social gatherings, and scheduled trips had to be canceled or postponed to contain virus transmission. These factors, in turn, negatively impacted the hospitality market. For instance, as stated in the report ‘STATE OF THE HOTEL INDUSTRY 2021’ published in January 2021 by the American Hotel & Lodging Association, the average annual hotel occupancy in the U.S. decreased to 44% in 2020 from 66% in 2019 due to the pandemic.


The emergence of the pandemic, however, led to an accelerated adoption of touchless services. The article titled ‘New Challenges and Technical Solutions for the Hospitality Industry in the Context of Pandemic,’ published in January 2021 by Hotel News Resource, states that activities such as contactless payments, activating room keys or locks by smartphone, kiosk-assisted self-service check-ins, and digital messaging services for hotel staff, among others, would surface because of COVID-19. Therefore, luxury chain operators have had the opportunity to offer such technologically advanced services, increasing the room occupancy rate.


Besides, as per the Expedia Annual Vacation Deprivation study, released on 3rd February 2021, 42% of survey respondents had to cancel one or more trips due to COVID-19 in 2020. However, as per the same survey, 36% of respondents stated planning regular vacations in 2021. Therefore, the gradual easing of lockdown rules would boost the luxury hotel market growth in the forecast period.


LATEST TRENDS


Request a Free sample to learn more about this report.


Adoption of Green Practices is the New Trend in Luxury Business


The ‘Five Star Alliance’ has listed several luxury eco-friendly hotels across the globe. The listed hotels include Banyan Tree Bintan (Indonesia), Four Seasons Vancouver (Canada), Hyatt at Olive 8 (the U.S.), Shangri-La Hotel Bangkok (Thailand), and The Oberoi Vanyavilas (India), and others. These hotels are listed based on several factors, including using locally available materials, recruiting a local labor force, and adopting sustainable business practices.


Therefore, hotel owners focus on offering services that do not harm the environment due to the shifting consumer preference toward natural living. For instance, in August 2019, Marriott International announced removing single-use bottles of bath gels, shampoos & conditioners from all of its properties globally. The hotel company aims to reduce plastic usage in the amenities department by about 30% by eliminating such tiny bottles.


DRIVING FACTORS


Blooming Travel and Tourism Industry to Expand Market Size


The tourism industry has witnessed continued growth over the years globally, with an increased number of domestic as well as international tours. As per the World Tourism Organization (UNWTO)’s report on the COVID-19 impact assessment on international tourism, published in 2022, over 900 million tourists traveled globally in 2022, double that of tourists in 2021. In addition, as per the global consumer survey statistics revealed by World Travel & Tourism Council (WTTC) at the 22nd Global Summit in Riyadh, Saudi Arabia, in November 2022, among more than 26,000 consumers across 25 countries, 63% are planning a leisure trip in the new 12 months, 27% planning three or more trips during the period.


Besides, the increasing availability of lodging packages with deluxe rooms and high-end services has attracted many guests for extended stays, thereby boosting revenue generation. The increasing adoption of advanced technologies in offering various facilities, such as free Wi-Fi or smart bathrooms, in 5-star hotel rooms would attract guests. Therefore, the growing preference of sports teams as well as spectators for leisure & luxury travel-related activities has bolstered the demand for lavish hospitality places.


Increasing Number of High Net-Worth Individuals to Support Growth


Wealthy consumers primarily avail luxurious services, and therefore, the ever-growing wealthy populations across the globe are likely to promote market expansion. According to the data presented by the Organization for Economic Co-operation and Development (OECD), in 2021, 1% of the U.S. population holds 40.5% of the overall nation’s wealth.


Besides, high-end hoteling businesses are on the rise owing to constant bookings from business executives at luxury airport hotels or luxury city hotels centrally located conveniently. For instance, 2L De Blend in Utrecht, Netherlands, received The World Luxury Hotel Awards under the LUXURY BUSINESS HOTEL category two times consecutively in 2019 and 2020. 2L De Blend, located about 1 km from the Utrecht Zuilen railway station, is an aparthotel opened in October 2018, wherein the guest can stay from 1 night up to 6 months in the hotel. Therefore, an increasing number of wealthy populations and a rising number of high-class business tours would provide an impetus to this market.  


RESTRAINING FACTORS


Emergence of Accommodation-Sharing Facilities at Lower Prices to Limit Luxury Hotel Services Demand 


Higher prices of stay in higher star-rated hotels, coupled with the emergence of low-cost shared accommodation platforms such as Airbnb in low-income countries, are likely to hamper the market growth. Additionally, the growing prevalence of budget and mid-scale hotels in several countries worldwide would further limit market expansion.


SEGMENTATION


By Room Type Analysis


Premium Services Offered at Comparatively Lower Costs to Aid Upscale Segment to Dominate


Based on room types, the market is segmented into luxury, upper-upscale, and upscale. The growing trend of affordable luxury services will likely increase the footfall in upscale hotels, making it a dominant segment in the global market. The number and quality of services offered to the guest differ as per the room type. As per the guest satisfaction survey of J.D. Power released in July 2020, the following rankings were given for hotel brands based on guest satisfaction level in their respective types, Luxury: The Luxury Collection, Upper-upscale: Wyndham Grand Hotels, and Upscale: Hyatt Houses.


Players offering hotel services under the luxury and upper-upscale segments are adopting several strategies, such as partnerships and acquisitions, to consolidate their market share. For instance, in November 2021, Hyatt Hotels Corp. acquired 100 hotels & resorts of Apple Leisure Group, an American upper-upscale resort management services, travel, and hospitality group, to expand its presence in Europe and North America. Therefore, upper-upscale and luxury segments will likely grow at a CAGR higher than the upscale segment.


By Category Analysis


To know how our report can help streamline your business, Speak to Analyst


Chain Segment to Hold Highest Share Backed by Greater Number of Branded Chain Hotels 


The global luxury hotel market analysis can be categorized based on the category are chain and independent. The widely distributed presence of hotels in the chain category worldwide makes the chain hotel segment hold a major share of the global market. Hotels in the chain segment focus on expanding their reach to various parts of the globe, strengthening their presence in every region. For instance, in December 2022, Radisson Hotel Group, a luxury hospitality chain, expanded its presence by opening its first Radisson Blu Mosi-oa-Tunya Livingstone resort in Zambia, Africa. The Group plans to open 150 hotels in the region by the end of 2025.


However, organizations such as Small Luxury Hotels of the World (SLH) focus on promoting smaller, independently-owned luxury hotels globally, likely to fuel the independent hotel segment's growth.


REGIONAL INSIGHTS


North America Luxury Hotel Market Size, 2022 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


The North American market size stood at USD 47.09 billion in 2022. Increasing spending on extravagant lodging in the U.S. and Canada contributes to greater revenue generation, making North America a dominant region. According to the data presented by American Hotel and Lodging Association (AHLA), American hotel room services’ revenues and U.S. hotel occupancy rate reached USD 168.0 billion and 63.4% in 2022. Therefore, the regional market is driven by the increasing preference for leisure travel coupled with the higher spending power of the region's population.


Europe is expected to hold a considerable market share due to the significant European spending on travel & tourism-related services. According to the data presented by the European Union Department of Statistics (EU), nearly 56% of European residents made at least one personal tourism trip in 2021. In addition, 114 million nights were spent by international tourists in Spanish tourism accommodations in 2021. Therefore, the rising penetration of technically sound high-scale hotel chains to accommodate an increasing number of tourists in the region is likely to increase the room occupancy rate of European luxury hotels.


The growing upper-middle-class and middle-class populations in the Asia Pacific region with increasing living standards have significantly contributed to the market's growth. International hotel chains are therefore investing heavily in the region to expand their presence. For instance, in May 2021, Hilton Hotels & Resorts signed an agreement with four luxury hospitality businesses, Conrad Shanghai, Waldorf Astoria Shenzhen, Conrad Zhuhai, and Conrad Wuhan, to open more than 700 hotel rooms in China. Besides, an increasing foothold of domestic players, including The Oberoi, Shangri-La International Hotel Management, and Banyan Tree, would further support market growth.                                                                                                       


Rising governmental initiatives in South American countries to grow the tourism & hospitality sectors would positively impact the region’s market. In addition, improving standard of living and increasing number of higher income population groups in Chile and Peru is supporting the services revenues in the region.


To know how our report can help streamline your business, Speak to Analyst


The market in the Middle East and Africa is primarily driven by countries associated with GCC, owing to the presence of several millionaires and billionaires in these countries. According to the data presented by the United Nations Economic and Social Commission for Western Asia (UNSCWA), in March 2022, 10% of the population held nearly 80% of the wealth in Saudi Arabia. From 2019 to 2022, Saudi Arabian millionaires' average wealth increased by 20%. Therefore, being major oil-exporting countries, GCC countries have a strong presence of a wealthy population, which is likely to propel the market in the region.


KEY INDUSTRY PLAYERS


Introduction of New Premium Facilities by Key Players to Increase Competition 


Introducing enhanced services by key players at their newly introduced deluxe facilities will likely attract more guests, increasing competition amongst players to acquire new clientele and retain regular visitors. Nowadays, they are mearing their hospitality services’ performance by understanding the overall comfort offered to customers through their services, to build their operational capabilities. Additionally, key players in the market are investing in implementing strategies such as mergers and acquisitions adopted by key players are intended to increase their brand portfolios and enlarge their market share. For instance, in September 2022, Wyndham Hotels & Resorts, Inc., an American hotel company, invested USD 44.0 million to acquire the Vienna House brand from a Berlin-based hotel operator HR Group. This acquisition strategy will help the hotel group add a portfolio of 40 upscale & midscale hotels and 6,000 rooms.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • March 2022 - Rosewood Hotel Group, a global hospitality company, opened a new ultra-luxury hotel in Sao Paulo, Brazil. The hotel has high-end stores, entertainment avenues, artwork houses, garden towers, and luxury accommodations.

  • January 2022 – Reliance Industries, Ltd. invested USD 98.15 million to acquire New York, U.S.-based premium luxury hotel Mandarin Oriental to expand its American luxury hotel industry presence.

  • January 2021: Accor announced opening new facilities under the luxury segment, including Banyan Tree, Fairmont, Sofitel, and others, at various global locations. All facilities will likely comply with Accor’s ALLSAFE hygiene and cleanliness label.

  • January 2021 – Marriott International, Inc. announced its plans to open nearly 100 facilities in Asia Pacific in 2021 with luxury brands such as The Ritz-Carlton, St. Regis, W, The Luxury Collection, and JW Marriott, among others, across the region.

  • March 2020: Luxe Collection introduced five new facilities, including Eurostars Magnificent Mile (Chicago), The Belmont (Dallas), Il Tornabuoni (Florence), CoolRooms Atocha (Madrid), and Zeavola Resort (Koh Phi Phi, Thailand). This would expand Luxe Collections’ boutique 4- and 5-star properties portfolio.


REPORT COVERAGE


An Infographic Representation of Luxury Hotel Market

To get information on various segments, share your queries with us



The market research report provides a detailed market analysis and focuses on key aspects, such as competitive landscape, room types, and categories. Besides this, the report on global insights into the current industry trends, drivers, and restraints and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors contributing to the market's growth in recent years.


Report Scope & Segmentation 
















































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 11.1% during 2023-2030



Unit



Value (USD Billion)



Segmentation



By Room Type



  • Luxury

  • Upper-upscale

  • Upscale



By Category



  • Chain

  • Independent



By Geography



  • North America (By Room Type, Category, and Country)

    • U.S. (By Category)

    • Canada (By Category)

    • Mexico (By Category)



  • Europe (By Room Type, Category, and Country)

    • U.K. (By Category)

    • Germany (By Category)

    • France (By Category)

    • Italy (By Category)

    • Spain (By Category)

    • Rest of Europe (By Category)



  • Asia Pacific (By Room Type, Category, and Country)

    • China (By Category)

    • India (By Category)

    • Japan (By Category)

    • Australia (By Category)

    • Rest of Asia Pacific (By Category)



  • South America (By Room Type, Category, and Country)

    • Brazil (By Category)

    • Argentina (By Category)

    • Rest of South America (By Category)



  • Middle East and Africa (By Service Type, Category, and Country)

    • South Africa (By Category)

    • UAE (By Category)

    • Rest of the Middle East & Africa (By Category)





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 128.54 billion in 2022 and is projected to reach USD 293.61 billion by 2030.

In 2022, the North American market size stood at USD 47.09 billion.

Registering a CAGR of 11.1%, the market forecasted to grow during (2023-2030).

Based on category, the chain segment is expected to lead the market.

A rising number of leisure and business tours is a significant factor driving the markets growth.

Marriot, Accor, Hilton, and Hyatt are a few of the major players in the global market.

North America held the highest market share in 2022.

The advent of contactless technology, the adoption of online bookings, and the emergence of green hotels pose growth opportunities in the market.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Jun, 2023
  • 2022
  • 2019-2021
  • 160

    CHOOSE LICENSE TYPE

  • $4850
    $5850
    $6850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- UGlobal hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X