Luxury Hotel Market to Record 11.1% CAGR over 2023-2030, Emergence of Online Booking Services Has Accelerated the Market Growth

The global luxury hotels market size is estimated to display strong growth by reaching USD 293.61 billion by 2030. Fortune Business Insights™ in its report titled “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” observes that the market size in 2022 stood at USD 128.54 billion and is expected to reach USD 140.28 billion in 2023. The market is expected to witness a strong CAGR of 11.1% during 2023-2030. Luxury stay at vacation time for the families of upper management executives at the time of business tours have primarily supported the luxury hospitality industry. The emergence of online booking services has further accelerated the market growth. Increasing demand for premium services of luxury hotels with improved booking facilities is set to drive the market share.

Accor Opened New Facilities under the Luxury Segment

In January 2021, Accor opened new facilities under the luxury segment, including Banyan Tree, Fairmont, Sofitel, and others, at numerous global locations. All facilities will comply with Accor’s ALLSAFE hygiene and cleanliness label.

Pandemic Led To the Disruptions as Several Conferences, Events, Social Gatherings, and Scheduled Trips

The COVID-19 pandemic led to disruptions as several conferences, events, social gatherings, and scheduled trips were canceled or postponed. However, the emergence of the pandemic led to the adoption of touchless services. In 2020, according to a study by Expedia Annual Vacation Deprivation, it was reported that 42% of survey respondents had to cancel one or more trips due to COVID-19 during 2020. However, 36% of the respondents planned their vacations in 2021 with gradual ease in the lockdown rules which is expected to drive the market growth during the forecast period.

Rising Adoption of Green Practices to Propel Market Growth

The rising adoption of green practices is predicted to drive the luxury hotels market growth. Hotels such as 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 have been listed as some of the hotels as they use locally available materials, recruiting a local labor force, and adopting sustainable business practices. Hotel owners have been focusing on offering services that do not harm the environment. The hotels have been aiming to reduce plastic usage in the amenities department by about 30% by eliminating the use of tiny bottles.

However, the growing prevalence of budget and mid-scale hotels in several countries globally would limit market expansion.

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Increasing Competition amongst Market Players to Acquire New and Maintain Existing Customers

Key market players have been introducing new deluxe facilities for attracting more guests. Increasing competition amongst market players to acquire new and maintain existing customers. Key market players have been engaging in mergers and acquisitions to increase their brand portfolios and enlarge their market share. In September 2022, Wyndham Hotels & Resorts, Inc. acquired USD 44.0 million Vienna House brand. The acquisition is set to help the hotel group 40 upscale and midscale hotels and 6,000 rooms.

Key Industry Development

• January 2022: Reliance Industries, Ltd. acquired the premium luxury hotel Mandarin Oriental to expand its American luxury hotel industry presence. The company invested USD 98.15 million in the New York, U.S.-based premium luxury hotel.

List of Key Companies Profiled in the Market Report:

• Marriott International, Inc. (U.S.)


• Hyatt Hotels Corporation (U.S.)


• InterContinental Hotels Group plc (U.K.)


• Four Seasons Hotel Limited (Canada)     


• Hilton Hotels & Resorts (U.S.)


• Kempinski Hotels S.A. (Switzerland)


• Accor SA (France)


• The Indian Hotels Company Limited (India)


• Mandarin Oriental Hotel Group (Hong Kong)


• Shangri La International Hotel Management Ltd. (Hong Kong)

Further Report Findings

• North America dominated the market share due to increasing spending on extravagant lodging in the U.S. and Canada. This is set to generate high revenues and will help the region to be dominant. The regional market is growing due to a preference for leisure travel coupled with the higher spending power of the region's population.  


• Europe is having considerable market share due to 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.

Table of Segmentation