Market Size of Global Luxury Hotel Industry
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 127.40 Billion |
| Market Size (2029) | USD 198.80 Billion |
| CAGR (2024 - 2029) | 9.43 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Luxury Hotel Market Analysis
The Global Luxury Hotel Market size is estimated at USD 127.40 billion in 2024, and is expected to reach USD 198.80 billion by 2029, growing at a CAGR of 9.43% during the forecast period (2024-2029).
The luxury hotel market faced losses in 2020 due to the sudden fall in tourism amid the COVID-19 pandemic. The tourism sector has already felt the negative impact of the pandemic on its performance much earlier. Globally, travel restrictions and measures started as early as January 2020. Domestic and international tourists limited their travel due to fear of contracting COVID-19.
The rise in the travel and tourism industry and changing patterns in the standard of living have led to progressive growth in the luxury hotel market trends. The demand for luxury hotels varies with the type of properties and is influenced by factors such as location, size, and on-site properties. Rising disposable income, popularizing weekend culture, the introduction of low-cost airline services, and the booming service sector are expected to drive the market. The inflation in purchasing power and standard of living are some of the key constituents responsible for attracting customers toward luxury resorts. Hosting sports events by a city or country is also a significant factor propelling the demand for luxury accommodations. Sports teams, as well as spectators traveling from different destinations for the tournament, tend to book their stays in luxury hotels, leading to a surge in the number of bookings. Dominant players in the market are investing profoundly in infrastructure and upgrading their property with the latest accessories to enhance aesthetics and the overall comfort offered to customers. The North American region is expected to dominate the market, followed by Europe, over the forecast period. The business hotel segment is leading and is expected to dominate the market.
Luxury Hotel Industry Segmentation
A luxury hotel is defined as a hotel that provides a luxurious accommodation experience to the guest. Luxury hotels typically accommodate high-paying guests, and the services and dining are expected to be of high quality. A complete background analysis of the luxury hotel market, which includes an assessment of the market, emerging trends by segments and regional markets, significant changes in market dynamics, and market overview, is covered in the report. The Market Is Segmented By Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts, and Other Hotels) and By Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).
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Global Luxury Hotel Market Size Summary
The luxury hotel market is poised for significant growth, driven by the resurgence of the travel and tourism industry and evolving consumer lifestyles. Despite the setbacks experienced during the COVID-19 pandemic, which severely impacted global tourism and hotel occupancy rates, the market is on a recovery trajectory. Factors such as increased disposable income, the popularity of weekend getaways, and the expansion of low-cost airline services are contributing to the market's expansion. The demand for luxury accommodations is further bolstered by events such as sports tournaments, which attract both teams and spectators to luxury hotels. Major players in the industry are investing heavily in infrastructure and property upgrades to enhance guest experiences, with North America expected to lead the market, followed by Europe. The business hotel segment is currently the frontrunner in market dominance.
The luxury hotel industry is also witnessing a shift towards digital and contactless services, a trend accelerated by the pandemic. Innovations such as mobile check-ins, contactless payments, and biometric access are becoming standard, aligning with consumer expectations for convenience and security. The market is characterized by a growing desire among travelers to indulge in luxury experiences during vacations, particularly among newlyweds and seniors seeking memorable getaways. To maintain their brand image and attract discerning customers, luxury hotels are employing various marketing strategies and endorsements. The market is dominated by a few key players, but technological advancements and infrastructure developments are fostering competition and attracting new entrants. Notable mergers, such as those involving Accor and Ennismore, as well as Hamilton Hotel Partners and Pyramid Hotel Group, highlight the dynamic nature of the industry, with companies seeking to expand their portfolios and enhance their market presence.
Global Luxury Hotel Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Value Chain/Supply Chain Analysis
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1.5 Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Service Type
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2.1.1 Business Hotels
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2.1.2 Airport Hotels
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2.1.3 Suite Hotels
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2.1.4 Resorts
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2.1.5 Other Service Types
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2.2 Geography
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2.2.1 North America
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2.2.1.1 United States
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2.2.1.2 Canada
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2.2.1.3 Mexico
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2.2.1.4 Rest of North America
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2.2.2 Europe
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2.2.2.1 Germany
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2.2.2.2 United Kingdom
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2.2.2.3 France
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2.2.2.4 Italy
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2.2.2.5 Russia
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2.2.2.6 Spain
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2.2.2.7 Rest of Europe
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2.2.3 Asia-Pacific
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2.2.3.1 China
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2.2.3.2 Australia
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2.2.3.3 Japan
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2.2.3.4 India
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2.2.3.5 South Korea
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2.2.3.6 Rest of Asia-Pacific
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2.2.4 South America
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2.2.4.1 Brazil
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2.2.4.2 Argentina
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2.2.4.3 Rest of South America
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2.2.5 Middle-East and Africa
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2.2.5.1 United Arab Emirates
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2.2.5.2 Saudi Arabia
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2.2.5.3 South Africa
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2.2.5.4 Rest of Middle-East and Africa
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Global Luxury Hotel Market Size FAQs
How big is the Global Luxury Hotel Market?
The Global Luxury Hotel Market size is expected to reach USD 127.40 billion in 2024 and grow at a CAGR of 9.43% to reach USD 198.80 billion by 2029.
What is the current Global Luxury Hotel Market size?
In 2024, the Global Luxury Hotel Market size is expected to reach USD 127.40 billion.
