Between record growth and bold innovations, the luxury hotel market is redefining excellence.

The prosperous period for luxury hospitality shows no signs of slowing down, marked by exceptional growth and innovations pushing the limits of customer experience. Major luxury brands have fully grasped this booming market, and increasingly, they are investing in high-end hospitality. Over the past two years, iconic luxury houses have partnered with the hospitality sector, bringing their expertise, rigor, and unique signature to deliver even more exclusive experiences. Let’s dive into the figures and trends shaping this dynamic and exciting sector!

A Market in Full Expansion
The global luxury hospitality market is thriving. Valued at $154.32 billion in 2024, it is expected to reach $166.41 billion in 2025, and surpass $218 billion by 2029. With a compound annual growth rate (CAGR) of 11.5% projected until 2032, the sector promises attractive opportunities for investors and professionals alike.

This growth is fueled by the rise in travel, both professional and leisure, with an increasing number of customers turning to luxury. Travelers are seeking exclusive experiences, absolute comfort, and highly personalized services, prompting industry players to innovate even further.

In response to the growing luxury segment, major hotel groups are structuring their offerings by creating specific luxury divisions. Accor led the way by segmenting its operations and developing a division fully dedicated to luxury. Marriott followed suit at the end of 2023, confirming a trend that is reshaping the global hotel market.

France: A Land of Excellence
France is no exception in this global trend. The French luxury hospitality market, estimated at $12.16 billion in 2024, is expected to grow by 2.74% annually until 2029. Performance is on the rise, with a 3% increase in RevPAR and a 9.6% rise in average prices in 2023 compared to 2022.

Massive Investments
The sector’s appeal is reinforced by significant investments. The number of ultra-luxury hotel rooms is expected to increase by 12% by 2033, adding to the impressive 46% growth seen in the last decade. Mergers and acquisitions reached $286 million in 2023, reflecting investor confidence.

This growth is accompanied by strong performance from hotel groups in 2024, with continuous expansion projected for 2025. Major players like Hyatt, Hilton, Choice Hotels, Marriott, Radisson, and Wyndham have bolstered their international presence through significant portfolio expansions. In the coming years, these groups are expected to open thousands of new rooms worldwide, covering a broad range of segments from luxury to extended stays. The diversification of offerings and entry into new markets position these companies well for further development in 2025 and beyond.

Innovation at the Heart of Growth Strategy
Major hotel groups are betting on innovation to stand out.

For example:

• Hilton plans a net growth of its units between 6% and 7% by 2025, launching the “Hilton for Luxury” program, a global initiative for luxury travel advisors aimed at offering bespoke experiences. It also plans to open over 500 luxury properties in strategic high-potential destinations, including the reopening of the iconic Waldorf Astoria after its meticulous restoration, combining original Art Deco architecture with contemporary design.
• Accor, meanwhile, reported a 12% increase in its revenue in Q3 2024 and plans to continue this growth with new high-value-added propositions, such as luxury train travel with “La Dolce Vita Orient Express,” combining slow travel and luxury through Italy. They are also integrating innovative concepts into their new hotels, like the Faena New York, promising “experimental hospitality,” or developing unique locations like the former US Embassy in London and the ex-court of justice in Amsterdam, along with beachfront retreats focusing on wellness.

Looking Ahead to 2030: A Bright Future for Luxury Hospitality
Despite global economic challenges, luxury hospitality continues to demonstrate its resilience and growth potential. The focus on customer experience, personalization, and the integration of new technologies promises a bright future for the sector.

The outlook for the coming years is particularly promising:

• Sustained Growth: The global luxury market, including hospitality, is expected to grow at an annual rate of 5-7% until 2030. Specifically for luxury hospitality, an impressive CAGR of 10.5% is anticipated until 2030.
• Market Expansion: By 2030, the luxury hospitality market could reach $238.4 billion, aligning with the broader luxury market trend, which is expected to be worth between €2,000 and €2,500 billion.
• New Markets: Over 300 million new buyers are expected to join the luxury market by 2030, particularly in China, India, Latin America, and Africa.
• Technological Innovation: Mobile apps will become a standard in luxury hotels by 2030, facilitating not only bookings but also enhancing the overall customer experience.
• Massive Investments: The sector is set to receive colossal investments, amounting to €6 trillion by 2030, underscoring investor confidence in the future of luxury hospitality.

Luxury hospitality presents a dynamic, innovative, and highly promising market. These attractive prospects come with challenges, particularly regarding personalization, sustainability, and technology integration. The players who successfully capitalize on these trends and meet the ever-growing expectations of a demanding clientele—such as “travel maximizers” seeking unique experiences that blend adventure, relaxation, and personal enrichment—will be the big winners in this new era of luxury hospitality.

In this rapidly changing landscape, the Luxury Hotelschool stands out as a key player, 100% dedicated to luxury hospitality. Through its top-tier training programs, it prepares future professionals to meet the challenges of this demanding sector. Whether for students or professional training, the school works alongside the largest hotel groups, developing talent and transmitting the skills necessary for excellence in service.