Luxury Hotels

Luxury Hotels

Global Luxury Hotels Market to Reach US$150.9 Billion by 2030

The global market for Luxury Hotels estimated at US$106.1 Billion in the year 2023, is expected to reach US$150.9 Billion by 2030, growing at a CAGR of 5.2% over the analysis period 2023-2030. Business Hotels, one of the segments analyzed in the report, is expected to record a 5.7% CAGR and reach US$54.5 Billion by the end of the analysis period. Growth in the Suite Hotels segment is estimated at 4.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$28.4 Billion While China is Forecast to Grow at 8.4% CAGR

The Luxury Hotels market in the U.S. is estimated at US$28.4 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$33.3 Billion by the year 2030 trailing a CAGR of 8.4% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.8% and 4.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.7% CAGR.

Global Luxury Hotels Market - Key Trends & Drivers Summarized

How Are Changing Travel Trends Impacting the Luxury Hotels Market?
The luxury hotels market is being significantly shaped by evolving travel trends, particularly in the wake of the COVID-19 pandemic. Travelers today are seeking more personalized, immersive, and wellness-focused experiences, leading luxury hotels to rethink their service offerings. The rise of experiential travel, where guests prioritize unique and culturally enriching experiences over traditional amenities, is prompting luxury hotels to offer curated experiences, such as culinary tours, adventure activities, and wellness retreats. Moreover, the demand for privacy and exclusivity has grown, with affluent travelers opting for private villas, boutique hotels, and bespoke services. This shift in traveler preferences is driving luxury hotels to innovate, offering more customized, intimate, and experience-driven stays.

Why Is Sustainability Becoming Central to the Luxury Hospitality Industry?
Sustainability is becoming central to the luxury hospitality industry as environmentally conscious travelers increasingly seek out eco-friendly accommodations. Luxury hotels are under pressure to adopt sustainable practices, from energy-efficient operations to waste reduction and responsible sourcing of materials. Initiatives such as reducing single-use plastics, utilizing renewable energy, and offering farm-to-table dining experiences are becoming key differentiators in the market. Hotels like Six Senses, Banyan Tree, and 1 Hotels are at the forefront of integrating sustainability into their core business models, offering luxury experiences that are aligned with environmental stewardship. This growing focus on sustainable luxury is not only appealing to eco-conscious travelers but also helping hotels reduce operational costs and build brand loyalty.

What Role Does Technology Play in Elevating the Guest Experience in Luxury Hotels?
Technology is playing an increasingly important role in elevating the guest experience in luxury hotels. From AI-powered concierge services to smart room controls, luxury hotels are integrating advanced technologies to provide seamless and personalized guest services. Contactless check-ins, mobile room keys, and app-based services have become standard features, enhancing convenience and safety. Furthermore, luxury hotels are leveraging data analytics and artificial intelligence to anticipate guest preferences, offering tailored services such as personalized room settings, curated dining options, and bespoke itineraries. The use of virtual reality (VR) for virtual tours and digital concierge services is also gaining traction, allowing guests to explore hotel amenities and plan their stay before arrival. These technological innovations are transforming the luxury hospitality experience, making it more personalized, efficient, and memorable.

How Is the Growth in the Luxury Hotels Market Driven by Several Factors?
The growth in the luxury hotels market is driven by several factors, including changing traveler preferences, the increasing demand for sustainable hospitality, and the integration of advanced technologies. The rising trend of experiential and wellness-focused travel is prompting luxury hotels to offer more personalized and immersive experiences. The growing focus on sustainability is leading hotels to adopt eco-friendly practices, aligning with the values of environmentally conscious guests. Technological innovations, such as AI-driven services and smart room technologies, are enhancing the guest experience by offering more convenience, personalization, and safety. Additionally, the expansion of luxury hotel chains into emerging markets, coupled with the growing affluence of high-net-worth individuals globally, is further contributing to the robust growth of the luxury hotels market.

Select Competitors (Total 43 Featured) -

• Four Seasons Hotels Ltd.
• InterContinental Hotels Group plc
• ITC Hotels
• Jumeirah International LLC (Jumeirah Group)
• Kerzner International Management
• Mandarin Oriental International Limited
• Marriott International, Inc.
• Shangri-La International Hotel Management Ltd
• The Indian Hotels Company Limited (IHCL)

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.