Luxury Hotel Market Size, Share & Trends Analysis Report By Type (Business Hotels, Airport Hotels, Holiday Hotels, Resort & Spa, Others), By Region, And Segment Forecasts, 2023 - 2030

Luxury Hotel Market Size & Trends

The global luxury hotel market size was valued at USD 93.59 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 3.8% from 2023 to 2030. Emerging tourism and corporate industries across various regions, rising disposable income, increasing standard of living of people, and rise in preference for leisure travel are expected to drive the market.

The rise in purchasing power and standard of living are some of the key factors responsible for attracting customers to luxury resorts. As more money is being injected into the economy, demand for luxury accommodations for corporate events, corporate stays, and leisure trips is rising.

Hosting of sports events by a city or country has also been a major factor pushing the demand for luxury accommodations. Sports teams, as well as spectators traveling from various destinations for the tournament, tend to book their stays in luxury hotels, thus leading to a rise in the number of bookings.

Major players in the market are investing heavily in infrastructure and upgrading their properties with the latest equipment to enhance aesthetics and overall comfort offered to customers. Control4 Corporation, Crestron Electronics, Inc., and AMX LLC are some of the major companies providing automation solutions for controlling lighting, security, entertainment, energy, and other connected devices with an Internet of Things (IoT) ecosystem.

For instance, Star Hotel & Casino in Sydney offers complete guest control for their 174 luxury suites. The suites are integrated with a Control4 system that enables customers to control the television, music system, room temperature, blinds, and lights wirelessly through tablet/mobile applications. The system also incorporates light sensors that help save energy by switching lights off after 30 minutes of the room being unoccupied.

The Gateway Canyon Resort in Colorado has installed an automation system by Crestron Electronics, Inc. for controlling and monitoring electrical fittings and electronics in its rooms. Kapari, a luxury hotel in Santorini Island, has installed an automated control system by AMX LLC in each room to enable high-tech room control for their guests.

On the other hand, a constant increase in travel & tourism spending is expected to impact the luxury hotel industry positively. With the increase in disposable income, there is usually an enhancement in people's standard of living, which attracts them to luxury hotels for comfort and enriching experiences. The data substantiate that global trends are changing, and people are opting for luxury hotels and resorts for leisure and corporate meetings and activities.

The government regulations and policies on the tourism industry and tax implications on the luxury hotel market are anticipated to affect the market over the forecast period. The Albanian government has revised its tourism law by relaxing the criteria hotels must comply with to obtain a luxury hotel status. According to the revised law, a 5-star hotel with a minimum investment of USD 17.4 billion would get tax exemptions on these investments. Moreover, hotels receiving special status from the government would benefit from tax exemptions for ten years.

Type Insights

Based on hotel type, the market has been segmented into business hotel, airport hotels, holiday hotels, resorts & spa and others. The business hotel segment accounted for the largest revenue share of 33.2% in 2022. The rise of the digital nomad and remote work culture has created a new category of travelers who require both leisure and business amenities in their accommodations. Luxury business hotels are capitalizing on this trend by offering not only top-tier workspaces but also spa, dining, and recreational facilities, providing a well-rounded experience for their guests.

Furthermore, sustainability and eco-consciousness have become crucial factors influencing consumer choices, even in the luxury hotel sector. Many upscale business hotels are incorporating eco-friendly practices and designs into their operations, which align with the sustainability goals of modern businesses.

The resorts and spas segment is anticipated to exhibit a CAGR of over 4.9% over the forecast period. With a growing preference for leisure travel, there is a significant rise in demand for holiday resorts and spas that are specially designed to help guests relax and take a break daily routines. Major players in the market distinguish themselves by categorizing their properties into various themes such as spa resorts, sea and spa resorts, beach resorts, mountain/ski resorts, and golf hotel to attract customers. For instance, the Sofitel Agadir Thalassa Sea & Spa in Morocco exhibits peace with shades of white and black and the use of a combination of Moroccan culture and modern styles. A personal terrace suite, private beach, and private garden are some of the exquisite features of this resort.

Similarly, Sea Island, Georgia is a golf resort with state-of-the-art facilities for golf players, including five covered hitting bays, 300 yards of tee area, target greens, short game space, an indoor putting lab, a fitness center, and world-class instructors.

Crowne Plaza at Singapore’s Changi Airport Terminal 3 is considered as one of the most popular luxury airport hotels with facilities such as a spa that offers reflexology to overcome jet lag, a gym, and a swimming pool flanked by rainforest-style gardens. Other popular properties include Regal Airport Hotels, Hong Kong; The Fairmont Vancouver Airport, Vancouver; Sofitel London Heathrow; Kempinski Hotel Airport, Munich; Hotel Novotel Bangkok Suvarnabhumi Airport; Airways Hotel, Port Moresby; and Hilton Frankfurt Airport.

Regional Insights

North American region dominated the market and accounted for largest revenue share of 37.1% 2022 and this trend is expected to continue over the forecast period. The U.S. accounted for the largest revenue share in that market in 2017 since it is a global financial hub and one of the most popular tourist destinations for people worldwide. The Asia Pacific region is projected to witness the highest growth rate over the forecast period.

Asia Pacific is expected to grow at the fastest CAGR of 5.2% during the forecast period. The growing disposable income of families in the Asia Pacific region has boosted the region’s spending on tourism. Also, countries including China, Japan, and Singapore are financial hubs attracting business tourism in the area. The region exhibits moderate growth and high penetration rate owing to its high climatic and geographic diversity, making it one of the most popular tourist destinations in the world.

The Europe market has been gaining prominence owing to government initiatives for the promotion of tourism in their country and local regions by spreading awareness about its architectural or historical significance. For instance, the rich history of European countries, such as the U.K., Spain, Italy, and France, is a significant factor driving the Europe market. Europe had the highest share of the number of U.S. citizens traveling to international regions by air, followed by the Caribbean and Asia.

Key Companies & Market Share Insights

Market players enter into partnerships, mergers and acquisitions (M&A), and strategic agreements to expand their geographical footprint..

Recent Developments

• June 2023, Accor, a French international hospitality group, announced it would open more than 1,200 hotels over the next five years, expanding the number of resorts by one-fifth. The company aims to enhance its geographical presence and strengthen its financial portfolio.

• In June 2023, Marriott International, Inc. signed an agreement with Hiap Hoe Limited, a Singapore-based premium real estate company, to bring the design-forward Aloft Hotel brand to Singapore through HH Properties Pte. Ltd. The 785-room hotel is planned to open in 2023 after a strategic makeover, marking the debut of the Aloft brand in Singapore.

• In June 2023, Outrigger Hotel Hawaii announced plans to invest in Hawaii by purchasing Kauai Beach Resort & Spa. The resort is situated on 25 acres of beachfront property with 350 bedrooms and is located on the Hawaiian island of Kauai.

• In June 2023, Blackstone Real Estate Income Trust, Inc., a real estate investment platform, and Ryman Hospitality Properties, Inc., a hotel and resort company, both based in the U.S., announced an agreement to sell the JW Marriott San Antonio Hill Country Resort & Spa in San Antonio, Texas to Blackstone.

• In June 2023, Radisson Hotel Group announced the signing of seven additional hotels. The company aims to expand the Group's chain with a fresh entry into the market of Gambia, including the first Radisson Collection in Nigeria, Egypt, and Kenya.

• In February 2023, Hyatt finalized the acquisition of Dream Hotel Group, which adds 12 lifestyle hotels and 24 strategic management agreements for additional openings to the global hospitality powerhouse's portfolio. It also includes lifestyle brands such as Dream Hotel, Unscripted Hotel, and The Chatwal.

• In August 2022, Hann Philippines Inc. signed a multi-year agreement with Accor Group to open an Emblems Clark hotel and a Sofitel Clark as a holistic expansion of Hann Lux. The number of Accor Hotels operating in Clark under the same partnership reaches six resorts, such as Banyan Tree Clark and Mercure Clark, as well as the recently launched Swissôtel Clark at Hann Casino Resort.

• In July 2022, Sunmei, a China-based company, along with Accor, announced an initiative to establish over 400 Mövenpick smart technology hotels in China. As a part of this agreement, Sunmei Digital Intelligence Group aims to enhance its business development and help Accor in enhancing Mövenpick's expansion.

Luxury Hotel Market Report Scope

Global Luxury Hotel Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global luxury hotel market on the basis of type and region:

• Type Outlook (Revenue in USD Billion, 2017 - 2030)

  • Business Hotels

  • Airport Hotels

  • Holiday Hotels

  • Resorts & Spa

  • Others

• Regional Outlook (Revenue in USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE