United States Luxury Hotel Market

United States Luxury Hotel Market:

United States luxury hotel market size is projected to exhibit a growth rate (CAGR) of 5.50% during 2024-2032. The emerging popularity of staycations and weekend trips is primarily driving the market growth across the country.

United States Luxury Hotel Market Analysis:

• Major Market Drivers: The growing demand for personalized experiences, with luxury travelers seeking services tailored to their preferences, is further driving the market's growth. Moreover, technological integration is another crucial driver, with luxury hotels embracing innovations, such as smart room features, contactless check-ins, and advanced guest service platforms.
• Key Market Trends: Sustainability is emerging as a prominent trend in the United States, with luxury hotels prioritizing eco-friendly practices. Additionally, owing to the rising popularity of remote work and the desire for immersive experiences, luxury hotels are incorporating co-working spaces and wellness programs across the country, thereby proliferating the market's demand.
• Competitive Landscape: The report has also provided a comprehensive analysis of the competitive landscape in the market. Also, detailed profiles of all major companies have been provided.
• Geographical Trends: The Northeast is one of the largest hotel markets in the U.S., as it is one of the world’s top destinations for luxury travelers. Boston and Washington, D.C. also have strong demand due to their roles in finance, politics, and education. Moreover, the South experiences strong demand for luxury hotels, particularly in cities like Miami and Atlanta also sees significant demand due to its role as a transportation and business center. Seasonal events, conventions, and a growing focus on luxury travel contribute to higher occupancy rates in these areas. 
• Challenges and Opportunities: The high competition among key players and the rising operating costs are hampering the market's growth. However, the increased affluence and a growing number of high-net-worth individuals in the U.S. create a larger market for luxury travel and accommodations.

United States Luxury Hotel Market Trends:

Rising Number of High-Net-Worth-Individuals

The rising number of high-net-worth individuals is driving the market's growth. For instance, according to Statista, between 2017 and 2024, the number of high-net-worth individuals (HNWIs) in the United States progressively climbed, from almost 15.4 million to around 22.4 million. After 2024, the number of HNWIs is predicted to rise significantly, reaching more than 26 million by 2028. As the number of high-net-worth individuals in the U.S. continues to rise, there is an increasing demand for luxury travel and high-end accommodations. This demographic typically seeks premium experiences and is willing to pay for exceptional service and amenities. These factors are further positively influencing the U.S. hotel industry size.

Increased Travel and Tourism Industry

Increased travel and tourism are significant drivers of growth in the U.S. luxury hotel market. For instance, according to the latest data from the global tourism body, the U.S. Travel & Tourism sector's GDP contribution would increase by 7% in 2023 to $2.36 trillion, surpassing the previous record by $100 billion. As more tourists visit the U.S., particularly from international markets, there is a greater demand for luxury accommodations. Affluent travelers often prefer high-end hotels that offer superior services and amenities. These factors further contribute to the United States luxury hotel market share.

Attractive Travel Packages

Hotels are increasingly offering attractive packages and promotions that appeal to high-end travelers, including curated experiences, private tours, and exclusive access to events, further driving the demand. For instance, in July 2024, Marriott International launched Business Access by Marriott Bonvoy, an online travel booking program for small and medium-sized organizations in the United States. The program offers a more comprehensive booking experience as well as incentives and awards exclusive to Marriott Bonvoy's award-winning travel program and brand portfolio. These factors are further augmenting the market growth.

United States Luxury Hotel Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on type, room type, and category.

Breakup by Type:

• Business Hotels
• Airport Hotels
• Suite Hotels
• Resorts
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes business hotels, airport hotels, suite hotels, resorts, and others.

Business hotels are designed to cater to the needs of corporate travelers, offering amenities, such as meeting rooms, high-speed internet, and business centers. They are typically located in major business districts or near convention centers. Moreover, airport hotels cater to travelers with early or late flights, offering convenience with easy access to airports. They often provide shuttle services and soundproof rooms. Furthermore, suite hotels provide spacious accommodations with separate living and sleeping areas, catering to travelers who need more space or prefer a home-like environment. Besides this, resorts offer a full range of leisure facilities and are often located in scenic or vacation-oriented destinations. They cater to travelers looking for relaxation and recreational activities.

Breakup by Room Type:

• Luxury
• Upper-Upscale
• Upscale
   

A detailed breakup and analysis of the market based on the room type have also been provided in the report. This includes luxury, upper-upscale, and upscale.

According to the United States luxury hotel market overview, luxury hotels offer the highest level of comfort, exclusivity, and personalized service. These properties cater to high-net-worth individuals and discerning travelers who seek exceptional experiences and high standards. Moreover, upper-upscale hotels are a step below luxury hotels but still provide a high level of comfort and service. They cater to travelers seeking a premium experience but are often more accessible in terms of pricing compared to luxury properties. Besides this, upscale hotels offer a high standard of comfort and quality but are generally more budget-friendly compared to luxury and upper-upscale hotels. They provide excellent service and amenities, though with less emphasis on exclusivity and personalization.

Breakup by Category:

• Chain
• Independent
   

The report has provided a detailed breakup and analysis of the market based on the category. This includes chain and independent.

Chain luxury hotels are part of large hotel brands or groups that offer standardized services and amenities across multiple locations. They are known for their consistency, extensive resources, and loyalty programs. Guests can expect a similar high standard of service and quality at different locations. While independent luxury hotels are not affiliated with major hotel chains and are often unique, offering personalized service and distinctive character. They are typically owned and operated independently, providing a more customized experience.

Breakup by Region:

• Northeast
• Midwest
• South
• West
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Northeast, Midwest, South, and West.

According to the US hotel industry statistics, the Northeast, particularly cities like New York City, Boston, and Washington D.C., sees consistently high demand for luxury hotels. These cities are major business and tourism hubs, attracting both corporate travelers and tourists. Moreover, the Midwest has a more varied luxury hotel market. Cities like Chicago and Detroit have strong demand due to their business districts and cultural attractions. However, luxury hotel demand can be less consistent compared to the Northeast. Furthermore, the South has seen a growing demand for luxury hotels, especially in cities like Miami, Atlanta, and Dallas. The region's warm climate, along with its expanding business and tourism sectors, contributes to this trend.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

United States Luxury Hotel Market News:

• September 2024: L+R Hotels planned to open Palm House Hotel in Florida, the company's first Iconic Luxury Hotels property in the United States, in November this year. The coastal property will include 79 bedrooms, including 21 suites with private terraces and balconies.
• July 2024: Marriott International launched Business Access by Marriott Bonvoy, an online travel booking program for small and medium-sized organizations in the United States.
• June 2024: Six Flags unveiled its first luxury hotel, a safari-themed facility that allows guests to glimpse a variety of exotic creatures from their glamping-style suites in New Jersey.

United States Luxury Hotel Market Report Scope:

Key Questions Answered in This Report:

• How has the United States luxury hotel market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the United States luxury hotel market?
• What is the breakup of the United States luxury hotel market on the basis of type?
• What is the breakup of the United States luxury hotel market on the basis of room type?
• What is the breakup of the United States luxury hotel market on the basis of category?
• What are the various stages in the value chain of the United States luxury hotel market? 
• What are the key driving factors and challenges in the United States luxury hotel?
• What is the structure of the United States luxury hotel market and who are the key players?
• What is the degree of competition in the United States luxury hotel market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States luxury hotel market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the United States luxury hotel market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States luxury hotel industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.