The five-star hotel market size has grown rapidly in recent years, increasing from $120.43 billion in 2023 to $134.37 billion in 2024 at a compound annual growth rate (CAGR) of 11.6%. This growth can be attributed to the rise in international travel and tourism, the growth of the global middle class, increasing consumer expectations for luxury amenities, the expansion of online booking platforms, and heightened investment in tourism infrastructure. Looking forward, the five-star hotel market size is expected to grow to $209.42 billion in 2028 at a CAGR of 11.7%. This growth will be fueled by increasing demand for premium hospitality services, growing business travel and corporate bookings, rising interest in sustainable and eco-friendly hotel practices, increasing demand for wellness and health-focused amenities, and the widespread adoption of digital booking platforms and mobile services. Major trends in the forecast period include the integration of advanced digital technologies, implementation of personalized guest experiences, development of eco-friendly infrastructure, implementation of smart room technologies, and the integration of blockchain for secure transactions.
Major Driver In The Five Star Hotel Market
Development in the tourism sector is expected to stimulate growth in the five-star hotel market in the coming years. The growth of the tourism sector is fueled by rising disposable incomes, improved transportation, and enhanced infrastructure, making destinations more accessible. Additionally, technological advancements are streamlining the booking and travel experience. Five-star hotels, often located in prime tourist destinations, cater to both leisure and business travelers seeking high-quality services. According to the Croatian Bureau of Statistics, commercial accommodation establishments in Croatia recorded 17.8 million tourist arrivals and 90 million tourist nights in 2022, a significant increase of 39.1% in arrivals and 28.3% in nights compared to 2021. The five-star hotel market is projected to grow from $25 billion in 2023 to $30 billion in 2024, with expectations of further growth reaching $40 billion by 2028. This development in tourism will continue to drive the five-star hotel market.
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Five Star Hotel Market Competitive Landscape
Major companies operating in the five star hotel market are Marriott International Inc, Radisson Hotel Group, Kohler Co., Rosewood Hotels & Resorts LLC, Hilton Worldwide Holdings Inc., ITC Limited, Hyatt Hotels Corporation, Four Seasons Hotels Limited, Accor S.A., InterContinental Hotels Group PLC, Kerzner International Holdings Limited, Kempinski Hotels S.A., The Trump Organization, Jumeirah International LLC, Shangri-La International Hotel Management Ltd, Belmond Management Limited, The Peninsula Hotels, Mandarin Oriental Hotel Group International Limited, Soneva, Banyan Tree Hotels & Resorts, Capella Hotel Group, Leela Palaces and Resorts Limited, The Oberoi Group, The Indian Hotels Company Limited, Anantara Hotels, Resorts & Spas
Key Five Star Hotel Market Trend
Major companies in the five-star hotel market are operationalizing non-gaming hotels with premium facilities to diversify their offerings. Non-gaming hotels are luxury accommodations that do not provide casino or gambling amenities, instead focusing on high-end services such as fine dining, spas, conference centers, and recreational activities to attract a diverse clientele. For example, in March 2024, HCW Development LLC, a U.S.-based real estate development and property management firm, launched Caesars Republic Scottsdale in Scottsdale, Arizona. This establishment is the first non-gaming hotel under the Caesars brand in the United States, marking a significant expansion into the luxury lifestyle hotel sector. The hotel is a modern 11-story glass structure featuring rich textures, bold architectural elements, and chic interior design that combines soft curves with striking accents.
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Global Five Star Hotel Market Segmentation
The five star hotel market covered in this report is segmented –
1) By Type: Business Hotel, Suite Hotel, Airport Hotel, Resorts Hotel
2) By Category: Chain, Individual
3) By Application: Room, Food And Beverage, Spa, Other Applications
By Geography:The regions covered in the five star hotel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the five star hotel market in 2023.
The Five Star Hotel Global Market Report 2024 furnishes information about the global five star hotel market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
