Market Trends of United States Luxury Hotel Industry
Tourism Growth in United States is Driving the Market
Tourism growth in the United States plays a significant role in driving the luxury hotel market. Growing tourism in the United States leads to an increased number of travelers seeking accommodation. This surge in demand creates opportunities for luxury hotels to attract visitors who are willing to spend more for premium experiences and amenities.
Tourism growth directly contributes to the revenue generated by luxury hotels. With more visitors exploring the country, luxury hotels can capitalize on higher occupancy rates, room rates, and increased spending on additional services such as dining, spa treatments, and exclusive experiences. Strong tourism growth can encourage hotel developers and investors to expand their luxury hotel portfolios. It can lead to the construction of new properties or the renovation and upgrading of existing ones to cater to the rising demand from travelers.
Number of Tourist in Luxury Hotels in United States Continues to Grow
The increasing number of Chinese tourists arriving in the United States is driving an expansion in the luxury hotel market. New data shows the United States will have 1,067 luxury hotels by the end of this year, and that number is expected to increase by 1.7 percent, to 1,123 properties, by 2023. Although the growth is not expansive, it points to a gradually increasing demand from international and domestic source markets. In addition, luxury hotels, such as Four Seasons, have indicated that China is their second-largest source market. Revenue from Chinese travelers has increased steadily for the hotel company, with double-digit growth in revenue in recent years.
