North America Luxury Hotel Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 40.16 Billion |
| Market Size (2029) | USD 60.38 Billion |
| CAGR (2024 - 2029) | 8.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Luxury Hotel Market Analysis
The North America Luxury Hotel Market size is estimated at USD 40.16 billion in 2024, and is expected to reach USD 60.38 billion by 2029, growing at a CAGR of 8.5% during the forecast period (2024-2029).
The luxury hotel industry in North America is huge because the largest tourist spots are here, and maximum international tourism to North America has boosted this industry. More international sports events, trade fairs, and exhibitions are likely to bring in tourists from other countries and move tourists within the country. The luxury hotel market has been growing steadily because of changes in the way people live and the growth of the travel and tourism businesses.
In 2020, COVID-19 had a poor effect on the North American market. The coronavirus pandemic showed an impact on the proper functioning of various industries across the U.S., Canada, and other parts of North America. It badly affected North America's luxury market. This was primarily due to a halt in logistics and tourism. The banned national borders halted travel modes, and strict government rules made the luxury hotel industry keep hotels shut.
Demand for luxury hotels depends on the type of hotel and things like where it is, how big it is, and what else is there.The market is likely to be driven by factors like rising disposable income, the growing popularity of weekend activities, the introduction of low-cost airline services, and the growth of the service sector.Some of the main reasons why people go to luxury resorts are because their purchasing power and standard of living have gone up.
Hosting sports events in a city or country is also a big reason why people want to stay in high-end hotels. Sports teams and fans coming from far away to watch the tournament tend to book their stays in high-end hotels, which causes the number of bookings to go up. The biggest players in the market are putting a lot of money into infrastructure and updating their properties with new features to make them look better and give customers more comfort. The business hotel segment is leading and is expected to dominate the market.
North America Luxury Hotel Market Trends
North America Dominates the Luxury Hotel Segment Globally
The business hotel segment occupied around 41% of the total luxury hotel market. The U.S. occupied four-fifths of the total North American luxury hotel market, while Mexico is expected to grow at the fastest rate. Along with Europe, North America collectively accounted for two-thirds of the total size of the luxury hotel market and is expected to continue to dominate the market due to an increase in the number of tourists and travelers. In the year 2021, midscale and luxury hotel openings in North and Central America will account for 684 rooms.
With the advent of COVID-19, the RevPAR of the hotel industry in the US observed a steep decline, from USD 86 in 2019 to USD 45.48 in 2020. With recovery from COVID-19 and an increase in the movement of people, it reached a pre-COVID-19 level with a RevPAR of USD 72 in 2021.
United States Accounts for Major Share in the Market
The U.S. is estimated to have the largest revenue share in that market since it is a global financial hub as well as one of the most popular tourist destinations for people across the world. The United States is one of the most popular travel destinations worldwide. Every year, the country's famous cities, national parks, and entertainment options attract millions of visitors from around the globe. In 2022, the number of international tourist arrivals to the U.S. stood at almost 22 million after being on the rise after a steep decline during the COVID-19 period. With the influx of visitors and a boost in U.S. travel spending, the travel and tourism industry contributed over USD 175.4 billion to the country's GDP in the year 2022.
North America Luxury Hotel Industry Overview
The report covers major international players operating in the North America Luxury Hotel Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies is increasing their market presence by securing new contracts and tapping into new markets. The leading brands are opening exclusive stores for special products. The companies are also promoting, differentiating and selling limited editions to increase their visibility and brand awareness in the market.
North America Luxury Hotel Market Leaders
-
The St. Regis
-
JW Marriott
-
Rose Wood Hotel
-
Hyatt Corporation
-
Hilton Worldwide
*Disclaimer: Major Players sorted in no particular order
North America Luxury Hotel Market News
- July 2023: Choice Hotels acquired Radisson Hotel Group Americas. The deal was worth around $675 million, and with this deal, Choice Hotels acquired nine new brands, 624 hotels, and over 67,000 rooms.
- November 2022: Hyatt Hotel Corporation and Dream Hotel Group reached an agreement whereby Hyatt acquired Dream Hotel Group's lifestyle hotel brand and management platform, including the Dream Hotels, Chatwal Hotels, and Unscripted Hotels brands, with properties in some of the world's most prominent hotel markets across the Americas, Europe, and Asia.
- October 2022: Marriott International reached an agreement with Hoteles City Express, S.A.B. de C.V., to acquire the highly regarded City Express brand portfolio. The portfolio comprises 152 hotels, including 17,356 rooms across 75 cities in Mexico and three additional countries in Latin America. With this acquisition, Marriott is poised to become the largest hotel company in the Caribbean and Latin America, expanding its presence significantly in secondary and tertiary markets in the region.
North America Luxury Hotel Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS & DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
4.5 Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers/Consumers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on market
5. MARKET SEGMENTATION
5.1 Service Type
5.1.1 Business Hotel
5.1.2 Airport Hotel
5.1.3 Suite Hotels
5.1.4 Resorts
5.1.5 Others Services Types
5.2 Geography
5.2.1 United States of America
5.2.2 Canada
5.2.3 Mexico
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Marriott International Inc.
6.1.2 Hyatt Corporation
6.1.3 Ritz-Carlton Hotel Company LLC
6.1.4 Rosewood Hotels & Resorts
6.1.5 Hilton Worldwide
6.1.6 Wyndham Hotels & Resorts
6.1.7 Trump International Hotel and Tower
6.1.8 Radisson Hotels
6.1.9 Four Seasons Hotels and Resorts
6.1.10 Fairmont Hotels and Resorts
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER
North America Luxury Hotel Industry Segmentation
A luxury hotel is defined as a hotel that provides a luxurious accommodation experience to the guest. Luxury hotels typically accommodate high-paying guests and the services and dining are expected to be of high quality.
The North American Luxury Hotel Market Is Segmented By Service Type (Business Hotel, Airport Hotel, Suite Hotel, Resort, Other Service Hotels), Geography (United States Of America, Canada, And Mexico). The Report Offers Market Size And Forecasts For The North American Luxury Hotel Market In Volume (Number Of Hotels) And Value (USD) For All The Above Segments.
| Service Type | |
| Business Hotel | |
| Airport Hotel | |
| Suite Hotels | |
| Resorts | |
| Others Services Types |
| Geography | |
| United States of America | |
| Canada | |
| Mexico |
North America Luxury Hotel Market Research FAQs
How big is the North America Luxury Hotel Market?
The North America Luxury Hotel Market size is expected to reach USD 40.16 billion in 2024 and grow at a CAGR of 8.5% to reach USD 60.38 billion by 2029.
What is the current North America Luxury Hotel Market size?
In 2024, the North America Luxury Hotel Market size is expected to reach USD 40.16 billion.
Who are the key players in North America Luxury Hotel Market?
The St. Regis, JW Marriott, Rose Wood Hotel, Hyatt Corporation and Hilton Worldwide are the major companies operating in the North America Luxury Hotel Market.
What years does this North America Luxury Hotel Market cover, and what was the market size in 2023?
In 2023, the North America Luxury Hotel Market size was estimated at USD 37.01 billion. The report covers the North America Luxury Hotel Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the North America Luxury Hotel Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Luxury Hotel Industry Report
Statistics for the 2024 North America Luxury Hotel market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Luxury Hotel analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
