Market Trends of North America Luxury Hotel Industry
North America Dominates the Luxury Hotel Segment Globally
The business hotel segment occupied around 41% of the total luxury hotel market. The U.S. occupied four-fifths of the total North American luxury hotel market, while Mexico is expected to grow at the fastest rate. Along with Europe, North America collectively accounted for two-thirds of the total size of the luxury hotel market and is expected to continue to dominate the market due to an increase in the number of tourists and travelers. In the year 2021, midscale and luxury hotel openings in North and Central America will account for 684 rooms.
With the advent of COVID-19, the RevPAR of the hotel industry in the US observed a steep decline, from USD 86 in 2019 to USD 45.48 in 2020. With recovery from COVID-19 and an increase in the movement of people, it reached a pre-COVID-19 level with a RevPAR of USD 72 in 2021.
United States Accounts for Major Share in the Market
The U.S. is estimated to have the largest revenue share in that market since it is a global financial hub as well as one of the most popular tourist destinations for people across the world. The United States is one of the most popular travel destinations worldwide. Every year, the country's famous cities, national parks, and entertainment options attract millions of visitors from around the globe. In 2022, the number of international tourist arrivals to the U.S. stood at almost 22 million after being on the rise after a steep decline during the COVID-19 period. With the influx of visitors and a boost in U.S. travel spending, the travel and tourism industry contributed over USD 175.4 billion to the country's GDP in the year 2022.
