Luxury Hotel Market Size, Share & Trends Analysis Report By Hotel Type (Business, Airport, Holiday, Resort & Spa), By Region (North America, Europe, Asia Pacific, MEA, Latin America), And Segment Forecasts, 2020 - 2025

Report Overview

The global luxury hotel market size was valued at USD 89.61 billion in 2019 and is anticipated to expand at a compound annual growth rate (CAGR) of 4.3% over the forecast period. Emerging tourism and corporate industries across various regions, rising disposable income, increasing standard of living of people, and rise in preference for leisure travel are expected to drive the market.

The rise in purchasing power and standard of living are some of the key factors responsible for attracting customers toward luxury resorts. As more money is being injected into the economy, demand for luxury accommodations for corporate events, corporate stays, and leisure trips is rising.

Hosting of sports events by a city or country has also been a major factor pushing the demand for luxury accommodations. Sports teams, as well as spectators traveling from various destinations for the tournament, tend to book their stays in luxury hotels, thus leading to a rise in the number of bookings. For instance, luxury hotel chains in Russia are believed to be gearing up for FIFA World Cup 2018.

Major players in the market are investing heavily in infrastructure and upgrading their property with the latest equipment to enhance aesthetics and overall comfort offered to customers. Control4 Corporation; Crestron Electronics, Inc.; and AMX LLC are some of the major companies providing automation solutions for controlling lighting, security, entertainment, energy, and other connected devices with an Internet of Things (IoT) ecosystem.

例如,星级酒店和赌场提供了在悉尼complete guest control for their 174 luxury suites. The suites are integrated with a Control4 system that enables customers to control the television, music system, room temperature, blinds, and lights wirelessly through tablet/mobile applications. The system also incorporates light sensors that help save energy by switching lights off after 30 minutes of the room being unoccupied.

The Gateway Canyon Resort in Colorado has installed an automation system by Crestron Electronics, Inc. for controlling and monitoring electrical fittings and electronics of its rooms. Kapari, a luxury hotel in Santorini Island, has installed an automated control system by AMX LLC in each room to enable high-tech room control for their guests.

Luxury Hotel Market Trends

探讨了豪华酒店市场的主要参与者ting heavily in infrastructure development and deploying technologically advanced equipment to increase the comfort level of their guests and offer them a memorable experience. The hotels are upgrading their appliances with Control4, Crestron, and AMX systems. They are integrating their infrastructure with the Internet of Things (IoT) platform, enabling the user to control and monitor various equipment wirelessly with the help of tablet/mobile applications. However, as the need of the hour demands, the hotels prefer to keep themselves updated with the latest technological trends in the market and focus on customer satisfaction and comfort. Even though the threat of new entrants and substitutes in the market is low, there is aggressive competition amongst the existing players.

For instance, Star Hotel & Casino, based in Sydney Harbour, Australia, offers complete guest control for their 174 luxury suites. The suites are integrated with a Control4 system, enabling customers to wirelessly control various equipment such as music systems, television, blinds, lights, and temperature through mobile/tablet applications. Along with the guest control feature, the system enables light sensors for energy savings. Lights are automatically switched off after 30 minutes if the sensors sense no user around. Similarly, Gateway Canyon Resort in Gateway, Colorado, has installed a Crestron system for controlling and monitoring the hotel rooms.

On the other hand, in developed countries, spending on travel & tourism continuously increases yearly, which is expected to positively impact the luxury hotels industry. With the increase in disposable income, there is usually an enhancement in people's standard of living, which attracts them to luxury hotels for comfort and enriching experiences. The data substantiate that global trends are changing, and people are opting for luxury hotels and resorts for leisure and corporate meetings and activities.

The government regulations and policies on the tourism industry and tax implications on the luxury hotels market are anticipated to affect the market over the forecast period. The Albanian government has revised its tourism law by relaxing the criteria hotels must comply with to obtain a luxury hotel status. According to the revised law, 5-star hotels with a minimum investment of USD 17.4 million would get tax exemptions on these investments. Moreover, hotels receiving special status from the government would be benefiting tax exemptions for ten years.

Type Insights

Based on hotel type, the market has been segmented into business, airport, holiday, resorts and spas, and others. The others segment includes golf, ski, mountain, and lake hotels as well as cruises. The business segment accounted for the largest revenue share of around 35.0% in 2017. The resorts and spas segment is anticipated to exhibit a CAGR of over 5.0% over the forecast period. With a growing preference for leisure travel, there is a significant rise in demand for holiday resorts and spas that are specially designed to help guests relax and take a break daily routines.

Crowne Plaza at Singapore’s Changi Airport Terminal 3 is considered as one of the most popular luxury airport hotels with facilities such as a spa that offers reflexology to overcome jet lag, a gym, and a swimming pool flanked by rainforest-style gardens. Other popular properties include Regal Airport Hotels, Hong Kong; The Fairmont Vancouver Airport, Vancouver; Sofitel London Heathrow; Kempinski Hotel Airport, Munich; Hotel Novotel Bangkok Suvarnabhumi Airport; Airways Hotel, Port Moresby; and Hilton Frankfurt Airport.

Major players in the market distinguish themselves by categorizing their properties into various themes such as spa resorts, sea and spa resorts, beach resorts, mountain/ski resorts, and golf hotels to attract customers. For instance, the Sofitel Agadir Thalassa Sea & Spa in Morocco exhibits peace with shades of white and black and the use of a combination of Moroccan culture and modern styles. A personal terrace suite, private beach, and private garden are some of the exquisite features of this resort.

Similarly, Sea Island, Georgia is a golf resort with state-of-the-art facilities for golf players, including five covered hitting bays, 300 yards of tee area, target greens, short game space, an indoor putting lab, a fitness center, and world-class instructors.

Regional Insights

The North American region dominated the market in 2019, and this trend is expected to continue over the forecast period. The U.S. accounted for the largest revenue share in that market in 2017 since it is a global financial hub and one of the most popular tourist destinations for people worldwide. The Asia Pacific region is projected to witness the highest growth rate over the forecast period.

The growing disposable income of families in the Asia Pacific region has boosted the region’s spending on tourism. Also, countries including China, Japan, and Singapore are financial hubs attracting business tourism in the area. The region exhibits moderate growth and high penetration rate owing to its high climatic and geographic diversity, making it one of the most popular tourist destinations in the world.

The Europe market has been gaining prominence owing to government initiatives for the promotion of tourism in their country and local regions by spreading awareness about its architectural or historical significance. For instance, the rich history of European countries, such as the U.K., Spain, Italy, and France, is a significant factor driving the Europe market. Europe had the highest share of the number of U.S. citizens traveling to international regions by air, followed by the Caribbean and Asia.

The rising income of people in developing economies such as India, China, Thailand, Brazil, and South Africa is anticipated to fuel the global tourism industry, thus positively impacting the overall market. Countries facing political turmoil, economic crises, and stringent Foreign Direct Investment (FDI) regulations are anticipated to witness declining or slow market growth.

Luxury Hotel Market Share Insights

Key players in the market include Marriott International, Inc.; Shangri-La International Hotel Management Ltd.; InterContinental Hotels Group; AccorHotels; Taj Hotels Palaces Resorts Safari; and Four Seasons Hotels Limited.

Among the key competitors, Marriott International, Inc. contributed significantly to the overall market revenue in 2017. Some of the most popular global brands under the Marriot group are Ritz-Carlton, JW Marriott, Bulgari Hotels & Resorts, The Luxury Collection, St. Regis, Sheraton, Westin, Renaissance, Gaylord Hotels, Le Meridien, Delta Hotels, SpringHill Suites, Courtyard, TownePlace Suites, Fairfield Inn & Suites, and Four Points.

Market players enter into mergers and acquisitions (M&A) and strategic partnerships to expand their geographical footprint. For instance, in March 2017, AccorHotels announced its strategic partnership with Rixos Hotels to expand its geographical footprint in various countries including Russia, Egypt, UAE, and Turkey. Similarly, in May 2017, Belmond Management Limited acquired Cap Juluca, a luxury resort on the Caribbean island of Anguilla, to expand its property portfolio.

Luxury Hotel MarketReport Scope

Report Attribute	Details
Market size value in 2020	USD 93.23 billion
Revenue forecast in 2025	USD 115.80 billion
Growth rate	CAGR of 4.3% from 2020 to 2025
Base year for estimation	2019
Historical data	2014 - 2018
Forecast period	2020 - 2025
Quantitative units	Revenue in USD million/billion and CAGR from 2020 to 2025
Report coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered	Type, region
Regional scope	北美;欧洲;亚太地区;拉丁美洲; MEA
Country scope	U.S.; Canada; U.K.; France; Germany; Italy; China; India; Thailand; Brazil; Mexico
Key companies profiled	AccorHotels; Belmond Management Limited; Four Seasons Hotels Limited; InterContinental Hotels Group; Mandarin Oriental Hotel Group Limited; Marriott International, Inc.; Rosewood Hotels and Resorts, L.L.C.; Taj Hotels Palaces Resorts Safari; The Ritz-Carlton Hotel Company, L.L.C.
Customization scope	Free report customization (equivalent to up to 8 analyst working days) with purchase. Addition or alteration to country, regional, and segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.Explore purchase options

Segments Covered in the Report

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global luxury hotel market report on the basis of type and region:

• Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Business

  • Airport

  • Holiday

  • Resorts & Spas

  • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • France

    • Germany

    • Italy

  • Asia Pacific

    • China

    • India

    • Thailand

  • 拉丁美洲

    • Brazil

    • Mexico

  • Middle East & Africa