Luxury Hotel Market Overgrowing Trends: Recent Developments and Industry Share

BySophia Davis

The global luxury hotel market was valued at USD 140.28 billion in 2023. The market is expected to reach USD 293.61 billion by 2030, with a CAGR of 11.1% during the forecast period. Hotels feature various services, from interior design and food offerings to extended types of services such as spas, gyms, swimming pools, and laundry, among others. Increasing growth in the tourism and travel industries will propel market growth. Fortune Business Insights™ shares this information in its report titled “Global Luxury Hotel Market, 2024-2030.”

Information Source: https://www.fortunebusinessinsights.com/luxury-hotel-market-104408

List of Key Players Profiled in the Luxury Hotel 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)

Segmentation

Upscale Segment to Lead Due To Increasing Rate of Affordable Luxury Services

On the basis of room type, the market is divided into luxury, upper-upscale, and upscale.  The upscale segment is projected to have the largest market share due to the increasing rate of affordable luxury services. Market players have been adopting various offering strategies, such as partnerships and acquisitions, under the luxury and upper-upscale segments. 

Chain Segment to Lead Due To the Presence of Hotels

On the basis of category, the market is divided into chain and independent.  The chain segment dominates with the largest market share owing to the highly distributed presence of hotels in the chain category.  

Report Coverage

The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market’s key players.

Drivers and Restraints

Growth in the Tourism and Travel Industry to Propel the Market Development

Growth in the tourism and travel industry is anticipated to drive the luxury hotels market growth. According to a report in 2022 by World Tourism Organization (UNWTO) on the COVID-19 impact assessment on international tourism. It stated that about 900 million tourists traveled globally in 2022 which was double of tourists traveled in 2021. Increasing availability of lodging packages with deluxe rooms and high-end services has attracted many guests for extended stays, thereby boosting revenue generation.

However, the presence of budget and mid-scale hotels in several countries limits market expansion

Regional Insights

North America to Lead Due To Increasing Spending On Extravagant Lodging

North America holds the largest part of the luxury hotel market share due to increasing spending on extravagant lodging in the U.S. and Canada. The market stood at USD 47.09 billion in 2022 due to the increasing preference for leisure travel and the higher spending power of the population.

Europe has a significant market share due to spending on travel & tourism-related services. Rising penetration of high-scale hotel chains to accommodate an increasing number of tourists.

Competitive Landscape

Key Market Players Have Been Introducing Enhanced Services with Newly Introduced Deluxe Facilities

The key market players have been introducing enhanced services with newly introduced deluxe facilities to attract more guests. Additionally, they have been investing in strategies such as mergers and acquisitions to increase their brand portfolios. The increasing rate of competition to acquire new clientele and retain regular visitors.

Key Industry Development

  • 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, JW Marriott, and others.