Luxury Hotel Market - Segmented by Service Type (Business Hotel, Airport Hotels, Suite Hotels and Resorts) and Geography - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Luxury Hotel Market Insight

The Luxury Hotel market is projected to grow at the rate of 4.7% during the forecast period 2018 to 2023. The rise in the travel & tourism industry and changing pattern in the standard of living have led to progressive growth in luxury hotel market trends. The demand for luxury hotel varies with the type of properties and is influenced by factors such as location, size, and on-site properties.

Rising disposable income, popularizing weekend culture, the introduction of low-cost airline services and booming service sector are expected to drive the market. According to JLL the movement of international travelers is expected to grow 4%, annually, over the next ten years, increasing the demand for the luxury hotel. As consumers are showing a keen interest in materializing their aspirations of luxury living are also growing is one of the critical factors which directly responsible for the growth of the luxury hotel industry market. Luxury travel has given birth to the luxury hotel with premium pricing. Nevertheless, the premium price charged by such hotels restrains the market development.

The North American region dominated the market, followed by Europe over the forecasted period. Expansion of the luxury hotel chains such as St Regis, The Ritz-Carlton Hotel Company, L.L.C., Four Seasons Hotels Limited, and Fairmont Hotels & Resorts will also contribute to the market's growth in the United States.

Business Hotel Segment Leading in the Luxury Hotel Market

The business hotels segment is expected to dominate the luxury hotel market, followed by airport hotel throughout the forecast period. These hotels primarily serve business travelers; many tour groups, individual tourists, and small conference groups. Business hotel provides their guests with unified communication capabilities that enable the guests to conduct meetings, group discussions, and connect with associates around the world.  

Global luxury travel market growth is influenced by the number of high nets worth individuals, in turn, driven by global economic development and the growth of luxury hotel in general.

Players have adopted acquisition, agreement, and partnership & mergers as their key strategies to increase their market share. For instance, in 2016, Marriott International acquired Starwood Hotels and Resorts Worldwide Inc. with an objective to become the world’s largest hotel chain; with more than 5,800 properties and 1.1 million rooms in more than 110 countries.

Increasing Popularity of Luxury Hotel in North America Region

North America accounts for the largest share of the global luxury hotel market. Further, the US dominates the North America region owing to increasing purchasing power of consumers and the rising number of international as well as domestic tourists on business or leisure trips. It is also named as a global financial hub making the most popular tourist destinations for people across the globe. Rising tourism in Germany, Italy, France, and U.K. is believed to spur the demand for luxury hotels in the Europe region. On the other hand, Asia-Pacific is expected to grow at a tremendous rate over the forecast period

Key Developments in the Luxury Hotel Market

• Nov 2015: Jumeirah Group and member of Dubai Holding launched Jumeirah Inside, which allowed users to experience the luxury of Jumeirah properties and make online hotel bookings. Jumeirah™ Inside, developed in collaboration with Google, to offers a fully immersive digital travel platform which is accessible through jumeirah.com.
• March 2017: France based AccorHotels, announced its strategic partnership with Turkey’s Rixos Hotels to expand its geographical footprint and customer base in various countries including Russia, Egypt, UAE, and Turkey.
• May 2017: Belmond Management Limited acquired Cap Juluca, a 96-key luxury resort on the Caribbean Island of Anguilla, to expand its property portfolio.

Competitive Landscape of Luxury Hotel Market

Major Key Players are ITC HOTELS, Marriott International Inc., Accor S.A., Belmond Ltd., Four Seasons Hotels Limited, InterContinental Hotels Group plc, Rosewood Hotels & Resorts, Ritz-Carlton Hotel Company, LLC, Hyatt Corporation, Shangri-La International Hotel Management Ltd., Aloeup, The Estée Lauder Companies Inc.

Reasons to Purchase Luxury Hotel Market Research Report

• Analyzing the outlook of the market with the recent trends and Porter’s five forces analysis 
• Market dynamics, which essentially consider the factors, which are impelling the present market scenario, along with growth opportunities of the market in the years to come
• Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
• Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
• Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
• 3-month analyst supports, along with the Market Estimates sheet in excel

Customization of the Luxury Hotel Market Research Report

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