Luxury hotels are the hotels that offers luxurious accommodations to their guests. The luxury hotels offers room with high quality furnishing, exclusive design interiors, and are equipped with flat-screen TV, coffee maker, and effective AC system. These luxury hotels also offer quality food services. Various types of luxury hotels include business hotels, airport hotels, suite hotels, resort & spa, and golf & ski hotels. Rising growth of the travel and tourism industry across the globe is expected to drive growth of the luxury hotels market over the forecast period (2019-2027).
- Luxury hotels market is expected to be driven by the rising growth of the travel & tourism sector, rising disposable income, increasing standards of living, and increasing government investments in tourism & hospitality industry. For instance, according to the India Brand Equity Foundation (IBEF), India was ranked third amongst 184 countries in 2016, in terms of travel and tourism’s total contribution to GDP and is expected to grow by 7.9% annually during 2016 to 2026.
- Based on hotel type, business hotels segment accounted for the largest share in global luxury hotels market, in terms of revenue in 2018. The segment is expected to witness significant growth over the forecast period, owing to rising number of business travelers and surging business travel spending globally.
- Among regions, North America accounted for the largest market share, in terms of revenue in 2018. In North America, the U.S. accounted for a highest revenue share in 2018, attributing to the presence of large number of hotel chains in the U.S. such as Marriott International, Inc., Hyatt Hotels Corporation, Shangri-La International Hotel Management Ltd., and Hilton.
- Moreover, Asia Pacific luxury hotel market is expected to witness significant growth over the forecast period (2019 to 2027). This is due to rapid expansion of travel & tourism sector and rise in business travel revenue in countries such as Japan, China, Australia, India, Hong Kong, and Thailand. For instance, according to the India Brand Equity Foundation (IBEF), the business travel revenue in India was valued at US$ 10.25 billion in 2016, and is expected to reach US$ 23.3 billion by end of Moreover, rising per capita income of emerging countries including India is expected to generate high revenues for travel and tourism sector in Asia Pacific, subsequently driving the growth of luxury hotels market over the forecast period. For instance, according to the India Brand Equity Foundation, per capita income in India increased at CAGR of 7.3% during 2014 to 2018.
Major companies operating in the global luxury hotels market include The Indian Hotels Company Limited, InterContinental Hotels Group plc, Rosewood Hotels & Resorts, Oberoi Hotels & Resorts, Naman Retreat, Jumeirah International LLC, Shangri-La International Hotel Management Ltd., Hyatt Hotels Corporation, Accor S.A, Hilton Hotels & Resorts, and Marriott International, Inc.
Large hotel chains are adopting various strategies such as expansions, and mergers & acquisitions, in order to maintain their competitive position in the global luxury hotel market. For instance, in Novermber 4, 2019, JW Marriott, a part of Marriott International, Inc., announced about the opening of JW Marriot Maldives resorts and spa in Vagaru Island, Maldives.
On the basis of hotel type, the global luxury hotels market is segmented into:
- Business Hotels
- Airport Hotels
- Suite Hotels
- Resorts & Spa
On the basis of operating channel, the global luxury hotels market is segmented into:
On the basis of region, the global luxury hotels market is segmented into:
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East
- Rest of Middle East
- North Africa
- Central Africa
- South Africa