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Luxury Hotel Market Size

Report ID: GMI7446
Published Date: Nov 2023
Report Format: PDF

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Luxury Hotel Market Size

Luxury Hotel Market was valued at USD 99.2 billion in 2022 and is set to observe more than 7% CAGR between 2023 and 2032, propelled by the upscale accommodations, amenities, and experiences. Online platforms and travel agencies promote these hotels, attracting travelers seeking premium stays. With increased visibility, luxury hotels can tap into a broader audience, capitalize on global tourism trends, and elevate their market presence, contributing to overall market growth.

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The expanding luxury tourism sector is a key factor driving the demand for luxury hotel. Luxury hotels cater to travelers seeking exclusivity, comfort, and exceptional hospitality, contributing to the market growth & prosperity. The World Travel & Tourism Council’s Economic Impact Report published in May 2022 predicts significant growth in the North America travel & tourism sector. Projected at a 3.9% average annual rate, the sector is expected to reach USD 3.1 trillion by 2032.

Luxury Hotel Market Report Attributes
Report Attribute	Details
Base Year:	2022
Luxury Hotel Market Size in 2022:	USD 99.2 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	7%
2032 Value Projection:	USD 204.9 Billion
Historical Data for:	2018 – 2022
No. of Pages:	237
Tables, Charts & Figures:	214
Segments covered:	Type, Category, Booking Channel
Growth Drivers:	Growing tourism in Europe and North America Rising disposable income globally Increasing demand for unique and personalized experiences Demand for luxury accommodations for corporate events
Pitfalls & Challenges:	Economic downturns and uncertainties can impact consumer spending Rise of alternative accommodation options, such as vacation rentals and boutique lodgings

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During economic downturns, luxury hotels face challenges as consumer spending on non-essential services including high-end accommodations tends to decline. Uncertainties such as recessions, financial crises, or global events can lead to reduced travel budgets and a shift in consumer priorities. Luxury hotels must adapt strategies to maintain demand, uphold exclusivity, and navigate the impact of economic uncertainties on the luxury travel segment.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of luxury hotel was worth USD 99.2 billion in 2022 and is predicted to register over 7% CAGR between 2023 and 2032, owing to the growth in tourism with surge in accommodations, amenities, and experiences.

The business luxury hotels market is expected to grow at a CAGR of over 8% through 2032. As corporate travel rises, executives and professionals seek accommodations that blend sophistication with functionality.

North America held around 38% share of the luxury hotel industry in 2022 and is estimated to register significant growth through 2032, due to a resurgence in travel and an improving economy post COVID.

AccorHotels, Four Seasons Hotels and Resorts, Hilton Worldwide Holdings Inc., Hyatt Hotels Corporation, InterContinental Hotels Group (IHG), Jumeirah Hotels and Resorts, Marriott International, St. Regis Hotels & Resorts, The Ritz-Carlton Hotel Company, and Waldorf Astoria Hotels & Resorts (Hilton).