Luxury Hotel Market to Reach $181.5 Billion, Globally, by 2034 at 4.9% CAGR: Allied Market Research

High-end travelers increasingly seek tailored services that go beyond traditional luxury, such as curated local experiences, wellness-focused amenities, and tech-enabled customization. Luxury hotels are leveraging AI-powered guest profiling, loyalty data, and mobile apps to offer individualized itineraries, customized dining options, and room preferences from lighting to pillow types.

WILMINGTON, Del., Nov. 12, 2025 /PRNewswire/ -- Allied Market Research published a report, titled "Luxury Hotel Market by Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts, and Others), and Category (Chain and Independent): Global Opportunity Analysis and Industry Forecast, 2025-2034". According to the report, the luxury hotel market was valued at $113.1 billion in 2024 and is estimated to reach $181.5 billion by 2034, growing at a CAGR of 4.9% from 2025 to 2034.

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Prime Determinants of Growth

The rise of bleisure travel, where business and leisure merge, is becoming a significant driver for the luxury hotel market. As remote work and flexible schedules become mainstream, business travelers are increasingly extending their trips to include leisure components, seeking premium amenities that allow them to balance work with relaxation. Luxury hotels are uniquely positioned to cater to this demand by offering high-speed connectivity, elegant workspaces, wellness facilities, and curated local experiences all under one roof. Executives and professionals now prefer accommodation that allows them to host meetings in sophisticated environments and unwind in spa lounges or fine-dining restaurants afterward. This trend not only boosts occupancy rates during weekdays, which are traditionally slower for leisure properties and also increases average length of stay and per-guest revenue.

Furthermore, experiential micro-destinations present a unique growth opportunity for the luxury hotel market by appealing to affluent travelers seeking exclusivity, authenticity, and immersive cultural experiences. Unlike traditional urban luxury hotels, properties located in remote or lesser-known areas such as private islands, mountain retreats, or heritage villages offer guests a sense of seclusion and personalized discovery that cannot be replicated in mainstream destinations.

Report coverage & details:

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The business hotels segment to maintain its leadership status throughout the forecast period.

By type, the business hotels segment held the major share of the market in 2024, accounting for more than one-fourth of the global luxury hotel market, and is estimated to maintain its leadership status throughout the forecast period. These hotels cater to executives and professionals with tailored amenities such as high-speed internet, conference rooms, express check-in, and proximity to business districts. Despite temporary slowdowns due to remote work trends, business travel is rebounding, especially in financial and tech hubs. The segment is expected to retain its dominance during the forecast period, supported by growth in international trade, resumption of in-person conferences, and demand for premium accommodation that blends work and comfort.

The chain segment to retain its dominance by 2035.

By category, the chain segment held the major share of the market in 2024, accounting for more than half of the global luxury hotel market, and is estimated to maintain its leadership status throughout the forecast period. Chain hotels benefit from strong brand recognition, standardized service quality, loyalty programs, and extensive global reach, making them a preferred choice among both business and leisure travelers. Its financial stability and ability to invest in technology, sustainability, and staff training further strengthen its market hold. Major players like Marriott, Hilton, and Hyatt continue expanding their luxury portfolios in emerging economies by enhancing guest experiences with innovations like mobile check-ins and AI-driven services, thus reinforcing their competitive edge.

North America to maintain its dominance by 2035.

By region, North America held the highest market share in terms of revenue in 2024, accounting for nearly one-third of the luxury hotel market. The North America luxury hotel market is shaped by high consumer spending, strong brand presence, and the region's diverse travel and tourism offerings. One of the key market trends is the rising demand for wellness-centric and experience-based stays, as travelers increasingly prioritize relaxation, nature, and curated experiences over traditional sightseeing. Major cities like New York, Los Angeles, and Toronto continue to see steady demand for business and leisure travel, while emerging destinations such as Nashville and Scottsdale are gaining popularity for upscale getaways.

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Leading Market Players

• Kempinski Hotel San Lawrenz
• InterContinental Hotels Group
• Hyatt Corporation
• The Indian Hotel Companies Limited
• Jumeirah International LLC
• Four Seasons Holdings Inc.
• ITC Hotels Limited
• Jardine Matheson Holdings Ltd
• Marriott International Inc.
• Shangri-La International Hotel Management Ltd.

The report analyses these key players in the global luxury hotel market. These players have adopted various strategies such as expansion, new service launches, partnerships, and others to increase their market penetration and strengthen their position in the industry. The report helps determine the business performance, operating segments, developments, and product portfolios of every market player.

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