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The APAC Luxury Hotel Market size is forecast to increase by USD 29.59 billion, at a CAGR of 8.15% between 2023 and 2028. The growth of the market depends on several factors growing number of luxury lodges in APAC, the expanding middle-class population with increased disposable income and increased preference for luxury lodges.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing number of luxury hotels in APAC is notably driving the market growth. The burgeoning number of luxury hotels in APAC is undeniably propelling the expansion of the luxury hotel market in the region. Dynamic economic development in APAC, coupled with the rise in the number of affluent travelers, has spurred a surge in the number of luxury projects across the region. For instance, in cities like Singapore, which is known as a global financial hub and tourist destination, there has been a proliferation of luxury lodges from established brands such as Marina Bay Sands and The Ritz-Carlton. Similarly, in destinations like Bali, Indonesia, luxury resorts such as The St. Regis Bali Resort and Bulgari Resort Bali cater to discerning travelers seeking unparalleled experiences amidst breathtaking natural beauty.
Furthermore, emerging markets within APAC are witnessing a rapid expansion of luxury hotel offerings, driving growth even further. Countries like China and India are experiencing a boom in luxury hotel development, with brands like The Peninsula, Mandarin Oriental, and Taj Hotels expanding their presence across key cities. As a result, the growing number of luxury hotels in APAC, both in established and emerging tourist destinations, is not only meeting the demand for upscale accommodations but also stimulating further expansion and investments in the luxury hotel market across the region. Therefore, the growing number of luxury hotels will drive the growth of the market during the forecast period.
The higher acceptance of online booking platforms is an emerging trend shaping market growth. A large number of individuals have started to use online portals for making hotel bookings. This enables people to make hotel bookings in a more organized manner. Hotel owners are coming up with new innovative strategies to promote their services on online portals. Online portals offer designed and customized deals for high-earning individuals and provide the opportunity to sign up for the pre-launch VIP program, enabling them to be one of the first customers. For instance, booking.com, one of the prominent online booking portals in the US, provides users with booking options depending on the type of visit.
In addition, online booking platforms provide detailed information on the destination and itineraries, which helps people choose a suitable destination without directly visiting travel and tourism agencies, thereby saving time. Therefore, the rapid development of online motel booking platforms and the rising popularity of online motel bookings are expected to increase the opportunities for vendors in the market. This, in turn, will drive the growth of the market during the forecast period.
The need to maintain high standards of service and guest satisfaction is a significant challenge hindering market growth. Extravagance resorts are expected to maintain impeccable standards of cleanliness, comfort, and service to meet the expectations of discerning guests. This requires ongoing investments in maintenance and refurbishment activities to ensure that facilities and amenities are kept in pristine condition, which can be costly and capital-intensive. The need to maintain high standards of services and ensure guest satisfaction presents a significant hurdle to the expansion of the market. While exceptional service is essential for attracting and retaining affluent clientele, it also requires substantial investments in training staff, infrastructure, and operational excellence.
Moreover, the pressure to meet or exceed guest expectations consistently can be particularly challenging in a competitive region like APAC, as discerning travellers have a plethora of amenity accommodation options to choose from. Any lapse in service quality or a negative guest experience can quickly tarnish the reputation of the hotel and undermine its competitiveness, especially in the present era, where online reviews and social media amplify customer feedback and responses. These factors may hinder the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accor SA - The company offers luxury hotels under its brands Banyan Tree, Emblems, Fairmont, Raffles, Sofitel and Gallery.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The upscale segment is estimated to witness significant growth during the forecast period. Upscale lodge rooms offer a balance between extravagance and affordability, appealing to a broader range of travelers seeking elevated comfort and amenities without the premium price tag associated with top-tier lodge suites. This segment caters to both leisure and business travelers who prioritize high-quality accommodations and personalized experiences while remaining mindful of budget considerations.
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The upscale segment was the largest and was valued at USD 34.28 billion in 2018. The expansion of the upscale room type segment in the Asia-Pacific luxury hotel market reflects the evolving preferences of consumers and the increasing affluence in the region, driving demand for mid-range luxury motels. Established and emerging markets in APAC, including China, India, Southeast Asian countries, and Australia, are experiencing a surge in indulgence hotel projects as hospitality brands seek to capitalize on this growing segment. By offering a compelling combination of upscale amenities, contemporary design, and competitive pricing, upscale motel rooms play a pivotal role in driving the overall growth and diversification of the APAC luxury hotel market, catering to the needs of modern travelers seeking value without compromising on quality. These factors will drive the growth of the upscale segment of the market during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Luxury Hotel Market in the Asia-Pacific (APAC) region is influenced by various factors, including the tourism sector, travel restrictions, and the preferences of domestic and international tourists. The location and on-site properties play a crucial role in attracting visitors, especially with the rising disposable income and the growing weekend culture.
The impact of low-cost airline services, digitization of services through apps and websites, and the integration of advanced technologies like mobile check-in, contactless payments, voice control, biometrics, facial recognition, and fingerprint recognition contribute to the evolving landscape of luxury hotels. The business hotel segment, coupled with a focus on sports events, adds to the diversity and competitiveness of the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
142 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.15% |
Market Growth 2024-2028 |
USD 29.59 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.89 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accor SA, Aman Group S.a.r.l., Choice Hotels International Inc., COMO Hotels and Resorts Asia Pte. Ltd., Four Seasons Hotels Ltd., Hilton Worldwide Holdings Inc., Hotel Okura Co. Ltd., Hyatt Hotels Corp., InterContinental Hotels Group PLC, ITC Ltd., Mandarin Oriental International Ltd, Marriott International Inc., Minor International PCL, Rosewood Hotel Group, Saffire Freycinet, Shangri La Asia Ltd., The Hongkong and Shanghai Hotels Ltd., The Indian Hotel Co. Ltd., THE REVERIE SAIGON, and Wyndham Hotels and Resorts Inc. |
Market dynamics |
Parent market analysis, Growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Ownership
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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