Growth of the luxury hotel market in North America
01-09-24
The North American luxury hotel market is valued at $57.83 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 10% over the forecast period. This growth is primarily driven by the increasing disposable income, a rising standard of living, and the expansion of the travel and tourism sector. Luxury hotels, characterized by their personalized services, state-of-the-art amenities, and high-end accommodations, are becoming increasingly popular. The market is segmented into business hotels, airport hotels, suite hotels, and further by room type (luxury, upper-upscale, and upscale) and category (chain and independent).
The market's expansion is also propelled by factors like the rise of low-cost airlines, the growing culture of weekend getaways, and a thriving service industry. The demand for luxury hotels varies based on location, size, and the unique offerings of each property. In particular, the rising demand for opulent accommodations for corporate events and stays significantly contributes to the market's growth.