Luxury Hotel Market Size, Growth, Price Analysis, Share to 2028 | Global Research Report by Fortune Business Insights™
The global ''luxury
hotel market'' size is projected to reach USD 238.49 billion by
2028, exhibiting a CAGR of 10.4% during the forecast
period. Fortune Business Insights™ diagnoses this market in
its report, titled “Luxury Hotel Market Size, Share & COVID-19 Impact
Analysis, By Room Type (Luxury, Upper-upscale, and Upscale), Category (Chain
and Independent), and Regional Forecast, 2021-2028”, which also states
that the market value stood at USD 93.43 billion in 2020.
Emergence of Eco-friendly Luxury Hotels to Accelerate the Market
The development of hotels guided by the principles of
environmental sustainability has altered perceptions surrounding luxury
accommodations. The increasing environmental consciousness among new-age
travelers has redefined the dynamics hitherto governing the hospitality
industry, leading to the construction of eco-friendly luxury hotel brands. For
example, the Andaz Maui at Wailea Resort in Hawaii has been conceived to
minimize waste and emissions. The resort features a solar water heater system
and variable speed chillers, while in the in-room settings, the glassware is
made from recycled materials along with automated temperature controls. Similarly,
at the Saffire Freycinet in Tasmania, Australia, Modwood is used as a wood
substitute, LED technology is extensively utilized to make the entire facility
energy-efficient, and natural cycle airflow systems have also been installed.
The growing popularity of such premium properties in exotic locations is set to
accelerate the expansion of this market.
Market Segments
Based on room type, the market has been divided into luxury,
upper-upscale, and upscale. By category, the market has been segmented into
chain and independent. On the basis of geography, this market has been
segregated into North America, Europe, Asia Pacific, South America, and the
Middle East & Africa.
Highlights of the Report
This report offers a detailed analysis of the various market
drivers and trends, along with a careful study of the various market
restraints. Moreover, the report contains a comprehensive examination of the
regional dynamics of the market, as well as an in-depth evaluation of the
competitive landscape of the market. In addition to these factors, the report
supplies an exhaustive assessment of all market segments.
COVID-19 to Create Widespread Instability in the Hospitality
Industry
The luxury hotel market growth is expected to shrink due to the
COVID-19 pandemic, with a market registering an astonishing decline of 60.82% in
2020 and reaching a value of USD 119.55 billion in 2021. One
main reason for this unprecedented downturn in the hospitality industry is the
steep drop in tourist activities worldwide. As per the estimations released by
the UN World Tourism Organization (UNWTO), export revenues from tourist
arrivals fell by approximately USD 910 billion to 1.2 trillion in 2020,
potentially shrinking the global GDP by 1.5% to 2.8%. Hotels, in particular,
have been the hardest hit. For example, according to the American Hotel &
Lodging Association (AHLA), 71% of hotels will not survive the next six months
without federal assistance and 77% will have to lay-off workers. Luxury hotel
chains, such as Le Meridien, have also resorted to cost-cutting, given the new
travel bans and the possibility of movement restrictions. In sum, markets
associated with the travel, tourism, and hospitality industry are set to enter
a period of deep financial stress on account of the coronavirus.
Regional Insights
High Spending Capacity of Travelers to Fuel the Market in North
America
Backed by a high spending potential of consumers, North America is
anticipated to dominate the luxury hotel market share during the forecast
period. A report by the US Travel Association showed that in 2019, domestic
travelers spent USD 972 billion, of which roughly 25% was spent on lodging
facilities. Furthermore, expenditures on hotels and resorts of both domestic
and international travelers rose by 4.1% in 2019 from 2018 levels, as per the
report, indicating a strong willingness to spend on vacations by consumers. The
North America market size stood at USD 30.66 billion in 2020.
In Europe, the market will enjoy a period of sustained growth as
the continent is home to some most attractive tourist places on the planet. The
UNWTO, for instance, observed that Europe accounted for nearly half of all
tourist arrivals globally in 2018. In Asia Pacific, on the other hand, the
expanding upper-middle-class and middle-class populations are pulling
international luxury hotel chains to establish their presence in countries such
as India, China, and Indonesia.
Competitive Landscape
Key Players to Tap Opportunities in Developing Markets
With the standard of living transforming in the emerging markets
of Asia and Africa, luxury hotel brands are actively amplifying their presence
and operations in these countries. Several hotel chains are coming up with new
offers and creating unique economy segments and services to attract travelers
and entrench their regional position.
List of Key Players Covered in the Luxury Hotel Market Report:
- Mandarin
Oriental Hotel Group (Quarry Bay, Hong Kong)
- Accor SA
(Issy-les-Moulineaux, France)
- Shangri-La Asia
Limited (Quarry Bay, Hong Kong)
- Four Seasons
Hotel Limited (Toronto, Canada)
- Hyatt Hotels
Corporation (Chicago, U.S.)
- The Indian
Hotels Company Limited (Mumbai, India)
- Kempinski Hotels
S.A. (Geneva, Switzerland)
- Hilton Hotels
& Resorts (McLean, U.S.)
- InterContinental
Hotels Group plc (Denham, U.K.)
- Marriott
International, Inc. (Maryland, U.S.)
Industry Developments:
- January
2021: Marriott
International announced its plans of opening 100 new properties across
Asia Pacific in 2021. The aim is to bring brands and exquisite experiences
to travelers and guests in unexplored destinations in the region.
- March 2020: Luxe
Collection opened its first branded property in New York City, the Luxe
Life Hotel New York. To this will be added new 4- and 5-star hotels –
Zeavola Resort (Thailand), Il Tornabuoni (Florence), Eurostars Magnificent
Mile (Chicago), CoolRooms Atocha (Spain), and
The Belmont (Dallas).
Browse Summary of This Research Insights:
https://www.fortunebusinessinsights.com/luxury-hotel-market-104408
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