Market Size of Global Luxury Hotel Industry
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 107.77 Billion |
| Market Size (2029) | USD 157.59 Billion |
| CAGR (2024 - 2029) | 7.90 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Luxury Hotel Market Analysis
The Global Luxury Hotel Market size is estimated at USD 107.77 billion in 2024, and is expected to reach USD 157.59 billion by 2029, growing at a CAGR of 7.90% during the forecast period (2024-2029).
The Global Luxury Hotel Market size is estimated at USD 107.77 billion in 2024, and is expected to reach USD 157.59 billion by 2029, growing at a CAGR of 7.90% during the forecast period (2024-2029).
The luxury hotel market faced losses in 2020 due to the sudden fall in tourism amid the COVID-19 pandemic. The tourism sector has already felt the negative impact of the pandemic on its performance much earlier. Globally, travel restrictions and measures started as early as January 2020. Domestic and international tourists limited their travel due to fear of contracting COVID-19.
The rise in the travel and tourism industry and changing patterns in the standard of living have led to progressive growth in the luxury hotel market trends. The demand for luxury hotels 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 the booming service sector are expected to drive the market. The inflation in purchasing power and standard of living are some of the key constituents responsible for attracting customers toward luxury resorts. Hosting sports events by a city or country is also a significant factor propelling the demand for luxury accommodations. Sports teams, as well as spectators traveling from different destinations for the tournament, tend to book their stays in luxury hotels, leading to a surge in the number of bookings. Dominant players in the market are investing profoundly in infrastructure and upgrading their property with the latest accessories to enhance aesthetics and the overall comfort offered to customers. The North American region is expected to dominate the market, followed by Europe, over the forecast period. The business hotel segment is leading and is expected to dominate the market.
