Four Seasons Resort Hualalai, Hawaii
Luxury hotels are enjoying a growing demand for rooms among tourists and business travelers, according to a Luxury Hotel Market Report released by Research and Markets, a Dublin-based market research provider.
The global luxury hotel market was valued at $15.5 billion in 2015 and is projected to reach $20.4 billion by 2022, the report concluded. The projected figures represent a compound annual growth rate (CAGR) of 4 percent from 2016 to 2022.
The business hotels segment accounted for approximately 42 percent of the total market revenue in 2015, Research and Markets stated. The business hotels segment is expected to dominate the market throughout the period, thanks in part to business travelers and small-conference groups. Research and Markets attributes the increase among consumers to a growing preference for leisure travel, and improved standards of living.
Sheetanshu Upadhayay, research analyst at Allied Market Research, said a rise in the number of business travelers and changes in customer lifestyles have fueled the demand for luxury stays, along with an increased trend toward various luxury spas and resorts. Upadhayay warned, however, the current premium price that luxury brand hotels are able to charge could restrain overall market growth.
Additional Key Findings
- North America is projected to maintain its leading position throughout 2022, growing at a CAGR of 5.1 percent from 2016–2022.
- The United States comprised four-fifths of the total North American luxury hotel market in 2015.
- Mexico is expected to grow at the fastest rate, with a CAGR of 6.6 percent from 2016–2022.
- North America and Europe combined accounted for about two-thirds of the total luxury hotel market size in 2015.
- Airport hotels accounted for approximately 20 percent of the overall luxury hotel market revenue in 2015 and are expected to grow at a CAGR of 3.7 percent through 2022.