The global luxury hotel market will reach $181.5 billion by 2034
According to a study by Allied Market Research, the luxury segment is expected to grow at a CAGR of 4.9% between 2025 and 2034, driven by the rise of bleisure and a greater commitment to premium experiences
The global luxury hotel market is experiencing sustained growth with strong prospects for the next decade. According to a recent report by Allied Market Research, the sector reached an estimated value of $113.1 billion in 2024 and is projected to grow to $181.5 billion by 2034. This growth translates into a compound annual growth rate (CAGR) of 4.9% between 2025 and 2034, driven by increasingly sophisticated demand and the transformation of global travel habits.
One of the main forces driving this growth is the phenomenon known as "bleisure," which combines business travel with leisure experiences. This type of traveler seeks more than just convenience: they expect technological efficiency, connectivity, wellness services, and high-end culinary offerings, all within the same establishment. Luxury hotels have successfully interpreted this trend, offering personalized experiences that integrate work, relaxation, and local exploration into a single product.
Despite the optimism, the sector is not without challenges. Changing visa policies, as well as persistent uncertainty surrounding health restrictions and entry requirements in some destinations, continue to create barriers to advance travel planning. However, the resilience of the premium segment has been notable, with a faster recovery than other categories since the pandemic and a clear commitment to differentiation.
Currently, hotels geared toward corporate travelers lead the global luxury segment, followed by hotels located in airports, resorts, and independent properties. In terms of ownership structure, large hotel groups such as Marriott, Hilton, Hyatt, and Accor continue to dominate the market thanks to their international networks, loyalty programs, and capacity to invest in innovation.
Latin America, although representing a smaller portion of the total market, shows clear signs of expansion. In 2024, it generated an estimated $8.672 billion in revenue within the luxury segment and is expected to grow at an annual rate of 7.6%, far exceeding the global average. This acceleration is supported by an increase in the development of high-end hotel projects in destinations such as Mexico, the Dominican Republic, Colombia, Brazil, and Peru, with more than 26,000 new rooms under construction by the end of that year.
The trends setting the tone in the region are aligned with global changes, but strongly rooted in local identity. Contemporary luxury in Latin America prioritizes authentic experiences, design with a sense of place, sustainability, and personalized well-being. Transformational travel, extended stays, multigenerational experiences, and offerings that connect with indigenous cultures are gaining ground among high-net-worth travelers, especially Latin American millennials and Gen Z.
In this scenario, the luxury hotel market not only consolidates its position as one of the most profitable in the tourism sector, but also redefines hospitality standards, driving an evolution in the way we travel and experience the world.
Fuente: Allied Market Research.