The global luxury hotel market size was estimated at USD 103.93 billion in 2024 and is projected to reach USD 156.80 billion by 2030, growing at a CAGR of 7.2% from 2025 to 2030. Alongside this financial growth, the luxury hotel sector is witnessing a notable increase in accommodation capacity, with the total number of luxury hotel rooms worldwide expected to rise from 1.6 million in 2023 to 1.9 million by 2030, according to data from CoStar.

This upward trend is largely driven by a growing demand from affluent travelers as well as aspirational middle-class consumers who are increasingly seeking unique and memorable experiences for special life events such as birthdays and destination weddings. In addition to leisure travel, business travel plays a significant role in fueling market expansion. Corporate retreats and offsite meetings are becoming increasingly popular among mid-level and senior management professionals, contributing to higher occupancy rates in luxury hotels.

Furthermore, the diversification of luxury travel destinations has been a critical factor supporting growth in this sector. Emerging locations like the Maldives are attracting not only couples but also families and larger groups, which has helped boost both occupancy rates and the length of guest stays. In fact, the average length of stay at luxury hotels reached 7.6 days in 2023, reflecting travelers’ preference for extended, immersive experiences.

Key industry players and specialized operators are actively driving this growth. For instance, Six Senses has demonstrated remarkable annual growth exceeding 14% since 2005, while Aman Hotels has maintained steady growth at about 5% annually during the same period, now boasting nearly 1,400 rooms as of 2024. Smaller boutique firms such as Virgin Limited Edition and Soneva have also recorded consistent growth, contributing to the dynamic nature of the luxury hospitality landscape.

The high profitability of luxury hotels continues to attract significant investment. In 2022, returns on investments in this sector exceeded 6%, according to JLL. This strong financial performance is illustrated by major investments such as Saudi Arabia’s Public Investment Fund (PIF), which invested USD 1.8 billion in the Rocco Forte Hotels group and over USD 1 billion in the Aman Group, underscoring the lucrative and appealing nature of the luxury hotel industry for investors worldwide.

Key Market Trends & Insights:

• In 2024, the luxury hotel market in North America represented a significant portion of the global industry, contributing approximately 36% to the worldwide revenue share. This substantial figure highlights the region’s crucial role in the overall luxury hospitality sector.

• Within North America, the United States emerged as the dominant player, commanding a commanding 85% share of the region’s luxury hotel market in 2024. This dominance underscores the U.S. as a major hub for luxury accommodations, driven by a large base of affluent travelers, developed infrastructure, and a variety of sought-after luxury destinations.

• When examining the market based on hotel categories, the luxury hotel chains segment stood out prominently, accounting for around 65% of the total revenue share in 2024. This indicates that branded luxury chains continue to attract the majority of customers seeking high-end hospitality experiences, benefiting from their extensive networks, recognized brand value, and consistent service quality.

• Looking at the market in terms of hotel type, the business hotels segment held a notable revenue share of approximately 32% in 2024. This reflects the importance of business travelers as a key customer group within the luxury hotel sector, as corporate travel and meetings remain significant drivers of demand.

• Regarding booking methods, direct bookings through luxury hotels themselves represented a considerable portion of the market, capturing about 42% of the total revenue share in 2024. This trend highlights consumers’ preference for booking directly with hotels, which often offers advantages such as better rates, exclusive deals, or loyalty program benefits, thereby reinforcing the direct booking channel as a critical avenue for revenue generation in the luxury hotel market.

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Market Size & Forecast:

• 2024 Market Size: USD 103.93 billion

• 2030 Projected Market Size: USD 156.80 billion

• CAGR (2025-2030): 7.2%

• North America: Largest market in 2024

Key Companies & Market Share Insights:

The luxury hotel industry is characterized by a high level of fragmentation, which primarily results from the presence of numerous well-established global players alongside a variety of strong regional operators. This diverse competitive landscape includes some of the most renowned names in the hospitality sector, such as Accor, Belmond Management Limited, Four Seasons Hotel Limited, Mandarin Oriental Hotel Group Limited, and Aman Resorts, among others. These companies have built strong brand reputations and maintain significant market shares, yet the industry remains competitive due to the varied presence of smaller, regional players.

To maintain and enhance their market positions, these leading players are actively pursuing various strategic initiatives. Expansion efforts, including the opening of new properties in emerging and established luxury travel destinations, are a key focus. Additionally, substantial investments in infrastructure, technology, and service quality are enabling these companies to elevate the guest experience. Furthermore, market participants are broadening their range of service offerings to better address and anticipate the evolving preferences of luxury travelers, who increasingly seek personalized, unique, and immersive experiences during their journeys. Through such strategies, players in the luxury hotel market strive to differentiate themselves and capture a larger share of the growing demand.

Key Players

• Accor

• Belmond Management Limited

• Four Seasons Hotel Limited

• InterContinental Hotel Group

• Mandarin Oriental Hotel Group Limited

• Marriott International, Inc.

• Rosewood Hotel Group

• The Indian Hotel Company Limited

• Radisson Hotel Group

• Aman Resorts

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Conclusion:

According to Grand View Research, the global luxury hotel market is experiencing significant growth, driven by increasing demand from affluent travelers and aspirational middle-class consumers seeking unique experiences for special occasions. Business travel, including corporate retreats, is also contributing to market expansion. Diversification of luxury destinations, such as the Maldives, has further supported higher occupancy rates and longer average stays. Specialized operators and luxury hotel brands are propelling the industry forward, with notable examples like Six Senses and Aman Hotels demonstrating consistent growth.