Authored By: Sarah
11 Jul 2024

 Luxury Hotel Market Size to grow by USD 54.46 billion between 2023-2027

According to a research report “ Luxury Hotel Market” by Type (Upscale, Upper-upscale, Luxury) Geography (North America, Europe, APAC, Middle East and Africa, South America)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 54.46 billion, at a CAGR of  4.5% during the forecast period. The luxury hotel market in developed economies, including Canada, the United States, Germany, and France, is experiencing significant growth. This sector plays a crucial role in boosting the economic growth of these nations. Factors such as the expanding middle class and increasing disposable income have led to an increase in expenditures on leisure activities. Moreover, the millennial population is growing steadily, and they are increasingly seeking luxury experiences. These trends are anticipated to fuel the expansion of the global luxury hotel market during the forecast period.

Browse market data tables, figures, and in-depth TOC on “Luxury Hotel Market” by Type (Upscale, Upper-upscale, Luxury) Geography (North America, Europe, APAC, Middle East and Africa, South America) Global Forecast to 2027. Download Free Sample

 

By Type, the Upscale segment is projected to dominate the market size in 2024

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By Geography, North America  segment is expected to hold the largest market size for the year 2024

Upscale hotels cater to discerning travelers with a diverse array of offerings, including on-site dining, concierge services, meeting and conference facilities, fitness centers, and business centers. These establishments typically fall under the three- and four-star categories. Family vacations and leisure travel have driven the demand for upscale hotels, which now feature exclusive children's play areas. Marriott, Radisson, and Hyatt are among the prominent hotel chains delivering upscale accommodations. Although upscale hotels represent an affordable luxury compared to their upper-upscale and luxury counterparts, guests may find a slight reduction in the quality of services and amenities provided.

North America is forecasted to hold the largest market size by region in 2024

The luxury hotel market in North America has experienced substantial expansion, driven by several key factors. These include the burgeoning baby boomer population seeking leisure travel experiences, the rising demand for brief getaways among working professionals, the increasing trend of multigenerational customized vacations, the proliferation of domestic tourist destinations, and the growing popularity of sports tourism. North America's well-connected transportation infrastructure, luxurious accommodations, and exotic tourism offerings make it an attractive destination for both domestic and international travelers. Popular adventure tourism activities in the US, such as trekking, caving, hill climbing, skydiving, and surfing, further bolster the region's allure, drawing a significant number of visitors to explore the country's diverse landscapes and offerings.

The Luxury Hotel Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Accor S.A.
  • Aman Group Sarl.
  • Best Western International Inc.
  • Choice Hotels International Inc.
  • Four Seasons Hotels Ltd.
  • Hyatt Hotels Corp.
  • InterContinental Hotels Group Plc
  • ITC Ltd.
  • Jardine Matheson
  • Jumeirah International LLC
  • Kempinski Hotels SA
  • Kerzner International Ltd.
  • LVMH Moet Hennessy Louis Vuitton SE
  • Marriott International Inc.
  • Rosewood Hotel Group
  • Shangri La Asia Ltd.
  • Soneva Mauritius Ltd.
  • The Hongkong and Shanghai Hotels Ltd.
  • The Indian Hotel Co. Ltd.
  • Wyndham Destinations
.

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Research Analysis Overview

The luxury hotel market is experiencing a technological revolution, with major players like Star Hotel & Casino integrating connected devices to enhance guest experience. This includes energy management systems, entertainment solutions, security systems, and lighting automation. Companies like AMX LLC, Crestron Electronics, and Control4 Corporation are leading this charge, providing luxury hotels with the latest equipment and infrastructure to create a comfortable and aesthetically pleasing environment for spectators, sports teams, and business travelers. Luxury hotels are not just accommodations for leisure trips anymore. They are hosting corporate stays and events, sports events, and are becoming integral parts of the economy. With the rising standard of living, purchasing power, and disposable income, the demand for luxury hotels and resorts is on the rise. The latest trends in the luxury hotel market include advanced automation solutions, energy efficiency, and corporate industries' emerging tourism. These hotels are not just offering comfort and relaxation but also providing a unique and memorable experience for their guests.

Market Research Overview

The luxury hotel market is experiencing a surge in growth, particularly in the sectors of golf resorts and holiday resorts. Crowne Plaza Sea Island in Georgia, USA, is a prime example, offering themes that cater to both leisure and business travelers. Modern businesses, such as upscale business hotels, are also gaining popularity. Eco-consciousness and sustainability are becoming essential themes in the industry, with resorts and spas leading the way. Tax exemptions and luxury hotel status are significant factors influencing the tourism law and government regulations in various countries. For instance, the Albanian government has implemented policies to attract more luxury hotels, considering the tax implications and economic benefits. In the realm of technology, resorts and holiday hotels, as well as airport hotels, are integrating connected devices, such as those from Crestron Electronics Inc and Control4 Corporation, to offer guests comfort and convenience. The latest equipment and infrastructure are essential for luxury properties, with amenities like lighting, temperature control, music systems, and television all controlled via tablet/mobile applications. Sports events and corporate stays continue to drive demand for luxury hotels. Properties in destinations like Santorini Island, Greece, and Sydney, Australia, are popular among spectators and sports teams. The rising disposable income and standard of living, coupled with the emerging tourism industry, are fueling the growth of the luxury hotel market.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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