Luxury Hotel Market Size, Share & Trends Report

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, 2018 - 2025

  • Published Date: Mar, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-139-9
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 78

Industry Insights

The global luxury hotel market size was valued at USD 83.10 billion in 2017 and is anticipated to expand at a 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.

U.S. luxury hotel market

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 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 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.

For instance, Star Hotel & Casino in Sydney offers 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.

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 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.

Global luxury hotel market

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 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 with a revenue share of over 35.0% in 2017, and this trend is expected to continue over the forecast period. U.S. accounted for the largest revenue share in that market in 2017 since it is a global financial hub as well as one of the most popular tourist destinations for people across the world. The Asia Pacific region is projected to witness the highest growth rate over the forecast period.

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 U.K., Spain, Italy, and France, is a major factor driving the Europe market.

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 having a favorable impact on 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.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Market revenue in USD Billion & CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., France, Germany, Italy, China, India, Thailand, Brazil, and Mexico

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of 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:

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

    • Business

    • Airport

    • Holiday

    • Resorts & Spas

    • Others

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

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • France

      • Germany

      • Italy

    • Asia Pacific

      • China

      • India

      • Thailand

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

Key questions answered by the report
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