Market Size of North America Luxury Hotel Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 40.16 Billion |
| Market Size (2029) | USD 60.38 Billion |
| CAGR (2024 - 2029) | 8.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Luxury Hotel Market Analysis
The North America Luxury Hotel Market size is estimated at USD 40.16 billion in 2024, and is expected to reach USD 60.38 billion by 2029, growing at a CAGR of 8.5% during the forecast period (2024-2029).
The luxury hotel industry in North America is huge because the largest tourist spots are here, and maximum international tourism to North America has boosted this industry. More international sports events, trade fairs, and exhibitions are likely to bring in tourists from other countries and move tourists within the country. The luxury hotel market has been growing steadily because of changes in the way people live and the growth of the travel and tourism businesses.
In 2020, COVID-19 had a poor effect on the North American market. The coronavirus pandemic showed an impact on the proper functioning of various industries across the U.S., Canada, and other parts of North America. It badly affected North America's luxury market. This was primarily due to a halt in logistics and tourism. The banned national borders halted travel modes, and strict government rules made the luxury hotel industry keep hotels shut.
Demand for luxury hotels depends on the type of hotel and things like where it is, how big it is, and what else is there.The market is likely to be driven by factors like rising disposable income, the growing popularity of weekend activities, the introduction of low-cost airline services, and the growth of the service sector.Some of the main reasons why people go to luxury resorts are because their purchasing power and standard of living have gone up.
Hosting sports events in a city or country is also a big reason why people want to stay in high-end hotels. Sports teams and fans coming from far away to watch the tournament tend to book their stays in high-end hotels, which causes the number of bookings to go up. The biggest players in the market are putting a lot of money into infrastructure and updating their properties with new features to make them look better and give customers more comfort. The business hotel segment is leading and is expected to dominate the market.
North America 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.
The North American Luxury Hotel Market Is Segmented By Service Type (Business Hotel, Airport Hotel, Suite Hotel, Resort, Other Service Hotels), Geography (United States Of America, Canada, And Mexico). The Report Offers Market Size And Forecasts For The North American Luxury Hotel Market In Volume (Number Of Hotels) And Value (USD) For All The Above Segments.
| Service Type | |
| Business Hotel | |
| Airport Hotel | |
| Suite Hotels | |
| Resorts | |
| Others Services Types |
| Geography | |
| United States of America | |
| Canada | |
| Mexico |
North America Luxury Hotel Market Size Summary
The North America luxury hotel market is experiencing significant growth, driven by the region's status as a prime destination for international tourism, business events, and sports activities. The market's expansion is supported by increasing disposable incomes, the popularity of weekend getaways, and the rise of low-cost airline services. The business hotel segment is particularly dominant, reflecting the region's robust economic activities and the demand for high-end accommodations by business travelers. Despite the challenges posed by the COVID-19 pandemic, which temporarily disrupted the industry, the market has shown resilience and is on a recovery trajectory, with major players investing in infrastructure and property upgrades to enhance customer experience.
The United States holds a substantial share of the market, benefiting from its global financial hub status and appeal as a top tourist destination. The influx of international visitors and the recovery of travel spending have bolstered the luxury hotel sector's contribution to the economy. The market is characterized by the presence of major international players, with ongoing mergers and acquisitions enhancing market dynamics. Companies are leveraging technological advancements and product innovations to expand their market presence, offering exclusive products and limited editions to boost brand visibility. As the market continues to evolve, both large and mid-size players are strategically positioning themselves to capture new opportunities and cater to the growing demand for luxury accommodations.
North America Luxury Hotel Market Size - Table of Contents
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1. MARKET INSIGHTS & 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 Bargaining Power of Buyers/Consumers
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1.5.2 Bargaining Power of Suppliers
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1.5.3 Threat of New Entrants
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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 market
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2. MARKET SEGMENTATION
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2.1 Service Type
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2.1.1 Business Hotel
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2.1.2 Airport Hotel
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2.1.3 Suite Hotels
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2.1.4 Resorts
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2.1.5 Others Services Types
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2.2 Geography
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2.2.1 United States of America
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2.2.2 Canada
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2.2.3 Mexico
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North America Luxury Hotel Market Size FAQs
How big is the North America Luxury Hotel Market?
The North America Luxury Hotel Market size is expected to reach USD 40.16 billion in 2024 and grow at a CAGR of 8.5% to reach USD 60.38 billion by 2029.
What is the current North America Luxury Hotel Market size?
In 2024, the North America Luxury Hotel Market size is expected to reach USD 40.16 billion.
