The global luxury hotel market size is projected to reach USD 238.49 billion by 2028, exhibiting a CAGR of 10.4% during the forecast period.According to Fortune Business Insights™,the value of this market was estimated to be USD 93.43 billion in 2020. This information is provided in itslatest report, titled “Luxury HotelMarket, 2021-2028”.
The COVID-19 pandemic is proving tobe detrimental to the luxury hotel market growth as the pandemic has caused asharp contraction in the demand for hospitality services worldwide. Lockdowns,restrictions on non-essential travel, and falling incomes have led to severalconferences, gatherings, and events getting delayed or canceled. In view ofthese dire circumstances, the market registered a drastic decline of 60.82% in 2020 and hit a value of USD 119.55 billion in 2021.
Accor to Open a Slew of Hotels in 2021
In January 2021, Accor SA unveiledits packed schedule of hotel openings all around the globe. The luxury hotelbrand is set to inaugurate the Banyan Tree Doha in Qatar and Raffles in Udaipurand Jeddah. Accor will particularly focus on the opening of its hotels underits Fairmont brand. For instance, the company will be opening the FairmontCentury Plaza in Los Angeles, Fairmont Windsor in England, the Fairmont-managedhotel Carton House in Dublin, and the Fairmont Ramla Riyadh in Saudi Arabia.The hotel behemoth also aims at leveraging its strong portfolio of brands,sound financials, and a wide global reach to rapidly strengthen its lifestyle categoryof hotels by 2023.
Booming Demand for Tourism Worldwide to Catalyze Market Growth
Travel and tourism activitiesacross the globe are thriving, providing livelihoods to millions of peoplewhilst ensuring enjoyment for vacationing individuals. According to UN WorldTourism Organization’s (UNWTO) International Tourism Highlights 2019 Edition,in 2018, international tourist arrivals reached the 1.4 billion mark, growingby 5% from the previous year. In terms of revenues, 2018 was an excellent year forthe tourism industry. The UNWTO report states that the value of internationaltourism exports in 2018 was USD 1.7 trillion, reflecting a 4% increase from2017 levels. These numbers are favorable for luxury hotel companies as lodgingis the foremost concern for travelers and staying in a premium hotel or resortis an important component of traveling for many tourists.
Chain Segment to Chart an Impressive Growth Trajectory till 2028
Based on category, the market hasbeen divided into chain and independent. Here, the chain segment is set to leadthe luxury hotel market share with a comprehensive share as hotel brands arerapidly establishing their chains in different parts of the world to capturethe rising demand for high-end hospitality services. These brands areparticularly focusing on building a robust presence in emerging economiesthrough partnerships with local tourism industry players. In 2018, forinstance, Accor inked a deal with the South Africa-based hospitality company,Mantis Group, to expand its footprint in Africa.
Onthe basis of room type, the market has been categorized into luxury,upper-upscale, and upscale. By geography, this market has been grouped intoNorth America, Europe, Asia Pacific, South America, and the Middle East &Africa.
Information source: https://www.fortunebusinessinsights.com/luxury-hotel-market-104408
