The luxury hotel market continues its upward trajectory, projected to reach $118+ billion in 2026 from $112+ billion in 2025, marking a compound annual growth rate (CAGR) of 5%.

The growth in the historic period can be attributed to growth in global high net worth individuals, expansion of international tourism hubs, premium brand hotel chain investments, rising corporate travel demand, luxury destination development.

The luxury hotel market size is expected to see steady growth in the next few years. It will grow to $143.19 billion in 2030 at a compound annual growth rate (CAGR) of 4.8%.

The growth in the forecast period can be attributed to experiential luxury travel demand, technology-enabled hyper personalization, growth of wellness tourism, expansion of emerging luxury destinations, rising affluent millennial travelers. Major trends in the forecast period include personalized guest experience platforms, smart room and automation adoption, sustainable luxury and green hotels, wellness and experiential travel focus, ultra high-end boutique expansion.

The rise in travel and tourism is expected to drive the growth of the luxury hotel market in the coming years. Travel and tourism involve individuals or groups traveling to and staying in destinations outside their usual environment for leisure, business, or other purposes.

Luxury hotels play a vital role within the travel and tourism ecosystem by offering personalized services, premium accommodations, and distinctive experiences that appeal to travelers seeking comfort, exclusivity, and high-quality hospitality.

For example, in January 2025, according to the United Nations World Tourism Organization (UNWTO), a Spain-based intergovernmental organization, approximately 1.4 billion tourists traveled internationally in 2024, representing an 11% increase compared with 2023 and indicating a near-complete recovery to pre-pandemic levels. Therefore, the increase in travel and tourism is fueling the growth of the luxury hotel market.

Major companies operating in the luxury hotel market are concentrating on the development of advanced technologies, such as artificial intelligence (AI)-powered hospitality management solutions, to enhance guest experiences, improve operational efficiency, and increase profitability. AI-powered hospitality management solutions are sophisticated systems designed to optimize hotel operations while delivering more personalized and responsive guest services.

For instance, in February 2024, Hyper Nimbus, a US-based technology company, launched a fully integrated AI-driven hospitality management platform aimed at streamlining hotel operations through the use of proprietary AI models. The solution brings together previously fragmented hospitality systems into a single platform and offers capabilities including predictive pricing for dynamic rate and occupancy optimization, sales and revenue management tools to support growth strategies, real-time guest intelligence analytics to improve guest engagement, and a smart concierge service that provides 24/7 guest support.

In February 2023, Hyatt Hotels Corporation, a US-based multinational hospitality company, acquired Dream Hotel Group for an undisclosed amount. Through this acquisition, Hyatt sought to expand its global presence in the lifestyle and luxury hotel segment by adding a portfolio that includes Dream Hotels, The Chatwal, and Unscripted Hotels. The acquisition comprises 12 operational properties and 24 long-term management agreements for future hotels. Dream Hotel Group is a US-based hospitality company known for its experiential, design-driven hotels featuring vibrant dining, nightlife, and premium hospitality experiences across major destinations such as New York City, Las Vegas, South Beach, Saint Lucia, and Doha.

Major companies operating in the luxury hotel market are Marriott International Inc., Hilton Hotels and Resorts, Hyatt Hotels Corporation, W Hotels, Kempinski Hotels S.A., Host Hotels and Resorts Inc., Accor SA, Four Seasons Hotel Limited, Ritz-Carlton Hotel Company LLC, Park Hotels and Resorts, Rosewood Hotel Group, InterContinental Hotel Group, Jumeirah International LLC, Radisson Hotels International Inc, Shangri-La International Hotel Management Ltd, Belmond Management Limited, The Peninsula Hotels, Aman Resorts, Mandarin Oriental Hotel Group Limited, Soneva, Banyan Tree Holdings, Six Senses, Oetker Collection, Auberge Resorts, Fairmont Hotels and Resorts, Waldorf Astoria, The Oberoi Group.

North America was the largest region in the luxury hotel market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the luxury hotel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the luxury hotel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The luxury hotel market includes revenues earned by entities by spa services, event space, room sales and rentals services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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