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Luxury Hotel Industry Size, Share, Growth Drivers, and Competitive Analysis 2032

Home - Business - Luxury Hotel Industry Size, Share, Growth Drivers, and Competitive Analysis 2032

Table of Contents

The global luxury hotel industry size was valued at USD 140.28 billion in 2023 and is anticipated to grow from USD 154.32 billion in 2024 to USD 369.36 billion by 2032, exhibiting a CAGR of 11.5% during the forecast period of 2024-2032.Emergence of Eco-friendly Luxury Hotels to Accelerate the industry

The development of hotels guided by the principles of environmental sustainability has altered perceptions surrounding luxury accommodations. The increasing environmental consciousness among new-age travelers has redefined the dynamics hitherto governing the hospitality industry, leading to the construction of eco-friendly luxury hotel brands. For example, the Andaz Maui at Wailea Resort in Hawaii has been conceived to minimize waste and emissions. The resort features a solar water heater system and variable speed chillers, while in the in-room settings, the glassware is made from recycled materials along with automated temperature controls. Similarly, at the Saffire Freycinet in Tasmania, Australia, Modwood is used as a wood substitute, LED technology is extensively utilized to make the entire facility energy-efficient, and natural cycle airflow systems have also been installed. The growing popularity of such premium properties in exotic locations is set to accelerate the expansion of this industry.

Top Companies Covered in the Luxury Hotel Industry

  • Mandarin Oriental Hotel Group (Quarry Bay, Hong Kong)
  • Accor SA (Issy-les-Moulineaux, France)
  • Shangri-La Asia Limited (Quarry Bay, Hong Kong)
  • Four Seasons Hotel Limited (Toronto, Canada)
  • Hyatt Hotels Corporation (Chicago, U.S.)
  • The Indian Hotels Company Limited (Mumbai, India)
  • Kempinski Hotels S.A. (Geneva, Switzerland)
  • Hilton Hotels & Resorts (McLean, U.S.)
  • InterContinental Hotels Group plc (Denham, U.K.)
  • Marriott International, Inc. (Maryland, U.S.)

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

Luxury Hotel Industry Segments

Based on room type, the industry has been divided into luxury, upper-upscale, and upscale. By category, the industry has been segmented into chain and independent. On the basis of geography, this industry has been segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Highlights of the Report

This report offers a detailed analysis of the various industry drivers and trends, along with a careful study of the various industry restraints. Moreover, the report contains a comprehensive examination of the regional dynamics of the industry, as well as an in-depth evaluation of the competitive landscape of the industry. In addition to these factors, the report supplies an exhaustive assessment of all industry segments.

COVID-19 to Create Widespread Instability in the Hospitality Industry

The luxury hotel industry growth is expected to shrink due to the COVID-19 pandemic, with a industry registering an astonishing decline of 60.82% in 2020 and reaching a value of USD 119.55 billion in 2021. One main reason for this unprecedented downturn in the hospitality industry is the steep drop in tourist activities worldwide. As per the estimations released by the UN World Tourism Organization (UNWTO), export revenues from tourist arrivals fell by approximately USD 910 billion to 1.2 trillion in 2020, potentially shrinking the global GDP by 1.5% to 2.8%. Hotels, in particular, have been the hardest hit. For example, according to the American Hotel & Lodging Association (AHLA), 71% of hotels will not survive the next six months without federal assistance and 77% will have to lay-off workers. Luxury hotel chains, such as Le Meridien, have also resorted to cost-cutting, given the new travel bans and the possibility of movement restrictions. In sum, industrys associated with the travel, tourism, and hospitality industry are set to enter a period of deep financial stress on account of the coronavirus.

Regional Insights

High Spending Capacity of Travelers to Fuel the Industry in North America

Backed by a high spending potential of consumers, North America is anticipated to dominate the luxury hotel industry share during the forecast period. A report by the US Travel Association showed that in 2019, domestic travelers spent USD 972 billion, of which roughly 25% was spent on lodging facilities. Furthermore, expenditures on hotels and resorts of both domestic and international travelers rose by 4.1% in 2019 from 2018 levels, as per the report, indicating a strong willingness to spend on vacations by consumers. The North America industry size stood at USD 30.66 billion in 2020.

In Europe, the industry will enjoy a period of sustained growth as the continent is home to some most attractive tourist places on the planet. The UNWTO, for instance, observed that Europe accounted for nearly half of all tourist arrivals globally in 2018. In Asia Pacific, on the other hand, the expanding upper-middle-class and middle-class populations are pulling international luxury hotel chains to establish their presence in countries such as India, China, and Indonesia.

Competitive Landscape

Key Players to Tap Opportunities in Developing Industrys

With the standard of living transforming in the emerging industrys of Asia and Africa, luxury hotel brands are actively amplifying their presence and operations in these countries. Several hotel chains are coming up with new offers and creating unique economy segments and services to attract travelers and entrench their regional position.

Industry Developments:

  • March 2022 – Rosewood Hotel Group, a global hospitality company, opened a new ultra-luxury hotel in Sao Paulo, Brazil. The hotel has high-end stores, entertainment avenues, artwork houses, garden towers, and luxury accommodations.
  • January 2022 – Reliance Industries, Ltd. invested USD 98.15 million to acquire New York, U.S.-based premium luxury hotel Mandarin Oriental to expand its American luxury hotel industry presence.