Luxury Hotel Market Size - By Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts), By Category (Chain, Independent), By Booking Channel (Direct Booking, Online Travel Agencies (OTAs)), Forecast 2023 - 2032

Luxury Hotel Market Size - By Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts), By Category (Chain, Independent), By Booking Channel (Direct Booking, Online Travel Agencies (OTAs)), Forecast 2023 - 2032

Luxury Hotel Market size is poised to record over 7% CAGR from 2023-2032, driven by the emerging remote working trend and the surging consumer preference for extended stays, work-friendly spaces, and amenities conducive to productivity.

Of late, luxury hotels are increasingly investing in renovations and redesigns for offering updated and modern accommodations, including refreshing interior designs, upgraded amenities, and enhanced guest comfort. To cite an instance, in May 2021, Adelaide’s iconic luxury hotel, InterContinental Adelaide disclosed a $32 million refurbishment plan. The growing emphasis on regular renovations for maintaining the property's value whilst upgrading the facilities and aesthetics will influence the market growth.

The luxury hotel industry is segmented into type, category, and region.

In terms of type, the industry share from the resorts segment may record robust CAGR from 2023 to 2032. The growth is led by the strong presence of diverse activities and amenities suitable for different age groups for catering to families and multigenerational travelers. Luxury resorts offer premium services and amenities, including personalized concierge services, such as world-class spas, fine dining, and private beaches and pools. The growing consumer preference for destinations providing relaxation, rejuvenation, and indulgence will also define the segment growth.

Based on category, the luxury hotel chain industry value is expected to expand exponentially from 2023-2032 owing to the rising emphasis on sustainability and responsible practices. Luxury hotel chains increasingly prioritize safety and security measures. This has made way for significant investments in robust security protocols and cleanliness standards for attracting guests concerned about safety. Personalized services, global accessibility, loyalty programs, and higher adaptability to changing guest preferences are other factors influencing the segment expansion.

Regionally, the Asia Pacific luxury hotel market size is projected to witness over 10% CAGR through 2032 owing to the rapidly expanding growing middle-class population in the region. With the rising number of travellers seeking more intimate and personalized experiences, there has been rising interest in unique and boutique luxury accommodations. The rapid digital transformation across several industries, the increasing internet penetration along with the robust growth of smaller luxury properties with distinct offerings will contribute to the regional industry growth.