23-Sep-2022 | Facts and Factors
According to Facts and Factors, the global luxury hotel market size was worth around USD 95.11 billion in 2021 and is predicted to grow to around USD 160.48 billion by 2028 with a compound annual growth rate (CAGR) of roughly 4.95% between 2022 and 2028.
Luxury hotels are different from traditional hotels due to the advanced services offered by them at a relatively higher price. Although the core function of all hotels and accommodation units is the same and requires hotel employees to provide the best of their services, however, since luxury hotels deal with huge investments and revenue, they are able to provide an even more enriched customer experience to their clients. Since luxury hotels spend huge amounts on the seamless integration of technology and services, it acts as a positive reinforcement for further global luxury hotel market growth.
Browse the full “Luxury Hotel Market Size, Share, Growth Analysis Report By Category (Independent, and Chain), By Type (Airport Hotels, Business Hotels, Resorts, Suite Hotels, and Others), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2028" report at https://www.fnfresearch.com/luxury-hotel-market
Some examples of offerings at a luxury hotel include a high-end spa & massage treatment, laundry service, pet & babysitting, exclusive interior designs, presence of high technology devices in the room, luxury bathrooms, chauffeur services, along with other intangible services like hassle-free appointments, recreational activities, excellent & multi-cuisine food delicacies, seamless flow of information & related aspects from the timing of the booking till checkout.
Covid-19 caused the global market size to witness losses during the pandemic driven by the closure of restaurants, hotels, and accommodation services in 2020. Since almost all regions were under lockdown, and the movement of people was heavily regulated, the hotel industry was the first and most affected sector across economies. As of 2022, even though hotels are allowed to function like before, the industry, in general, is projected to take a few more years to recover from the losses witnessed in the last 2 years.
The global luxury hotel market is anticipated to grow as a result of globalization, which is defined as the increased interdependence of economies, population, and cultures across the globe. It has resulted in the world becoming smaller, with an increased rate of movement amongst people from one region to another. The reason for the movement could be many ranging from personal vacation to the one enforced by professional obligations, however, with growing income and job opportunities, people have become more confident in their spending habits and a large section of society is now able to afford luxury spendings, at least once in a while if not frequently.
The global market cap also benefits from the increasing number of business trips taken by working professionals. Since these trips are business oriented and funded by companies, the professionals are generally accommodated in high-end hotels and not in modest ones which causes an increase in the global market revenue. The high cost of accommodations may restrict the global market expansion while growing collaborations are projected to create growth opportunities. However, reputation management may create challenging situations during the expansion trajectory.
Segmental Overview:
The global luxury hotel market is segmented based on type, category, and region.
Based on type, the global market is segmented into airport hotels, business hotels, resorts, suite hotels, and others. Around 40% of the global market was dominated by business hotels in 2021, followed by airport hotels. Since business hotels generally deal with people in front of the senior management of the business, small or large, they generally tend to create more revenue.
Based on category, the global market is divided into independent and chain. In 2021, the global market was led by the chain segment, which refers to the presence of multiple accommodation units of a single brand across territories, ranging from domestic to international regions. Hilton Hotels & Resorts, are a prime example of a chain of luxury accommodation units. Marriott International, a global hotel giant is estimated to have generated a revenue of USD 13.86 billion in 2021.
Regional Overview:
North America is anticipated to lead the global luxury hotel market driven by the presence of a large number of players as well as growing investments by the industry giants to expand their global footprint and increase brand value. Since many of the hotel chains are backed by heavy investors, they have the liberty to spend on adopting and collaborating with other service providers to upgrade their consumer experience.
Asia-Pacific may also register a significant CAGR because of the increasing number of investments related to infrastructure development and excellent policies of the country governments to attract more foreign investors. China may lead regional growth owing to the recent opening of many international luxury hotel chains as well as the emergence of domestic luxury accommodations. The country had more than 850 five-star hotels in 2019. In the year 2014, hotelier Stephen Hung spent more than USD 20 million to order 30 custom-made Rolls Royce to chauffeur the people staying in his hotel.
The European market may be driven by the growing tourism in the countries of Spain, the United Kingdom, Portugal, Denmark, and others along with strategic choices of market players to reach customers in the EU territory.
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 95.11 Billion |
Projected Market Size in 2028 |
USD 160.48 Billion |
CAGR Growth Rate |
4.95% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2028 |
Key Market Players |
Shangri-La International Hotel Management, Hyatt Corporation, Marriott International Inc., Taj Hotels, ITC Hotels, and others. |
Key Segment |
By Category, Type, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
Request customized purchase options to meet your research needs. Explore purchase options |
Competitive Landscape:
The global luxury hotel market is home to players like Shangri-La International Hotel Management, Hyatt Corporation, Marriott International Inc., Taj Hotels, ITC Hotels, and others.
Recent Developments:
- In September 2022, Marriott International announced its plan to expand its portfolio in Asia-Pacific by opening an additional 14 luxury hotels in the region.
- In August 2020, Aman Group received an investment of USD 900 million to aid its plans for expansion.
The global luxury hotel market is segmented as follows:
By Category
By Type
- Airport Hotels
- Business Hotels
- Resorts
- Suite Hotels
- Others
By Region
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
About Us:
Facts & Factors is a leading market research organization offering industry expertise and scrupulous consulting services to clients for their business development. The reports and services offered by Facts and Factors are used by prestigious academic institutions, start-ups, and companies globally to measure and understand the changing international and regional business backgrounds. Our client’s/customer’s conviction on our solutions and services has pushed us in delivering always the best. Our advanced research solutions have helped them in appropriate decision-making and guidance for strategies to expand their business.
Contact Us:
Facts & Factors
A 2108, Sargam,
Nanded City,
Sinhagad Road,
Pune 411041, India
USA: +1 (347) 690-0211
Email: [email protected]
Web: https://www.fnfresearch.com
