Luxury hotel market to be worth $195 bn by 2021
Study reveals the sector will increase at CAGR of more than 4% over the next seven years
The value of the global luxury hotels market is expected to increase to $195.27 billion by 2021, according to recent research.
A study from Transparency Market Research valued the sector at $148.62bn for 2014, and anticipates that this will increase by a CAGR (compound annual growth rate) of 4% over the next seven years.
North America is expected to maintain its dominance in the market with luxury hotels across the continent forecast to expand at a CAGR of 5.4% during the same period.
According to the report, the booming travel and tourism industry, coupled with changing lifestyle, is contributing to the growing popularity of luxury hotels.
A further breakdown of the luxury sector revealed that business hotels held the market share last year and is expected to expand at a CAGR of 3.8% between 2015 and 2021.