Five Star Hotel Market Report 2026

The five star hotel market size has grown rapidly in recent years. It will grow from $149.56 billion in 2025 to $166.95 billion in 2026 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to growth in luxury tourism, rising disposable incomes, business travel demand, global hotel brand expansion, premium service expectations.

The five star hotel market size is expected to see rapid growth in the next few years. It will grow to $257.96 billion in 2030 at a compound annual growth rate (CAGR) of 11.5%. The growth in the forecast period can be attributed to experiential travel demand, growth in high net worth travelers, digital luxury services, sustainable luxury investments, expansion of global tourism. Major trends in the forecast period include rising demand for luxury experiences, personalized guest services, integration of smart room technologies, growth in wellness and spa offerings, expansion of premium dining experiences.

The growth of the tourism sector is expected to drive the expansion of the five-star hotel market in the coming years. Development within the tourism sector is supported by economic growth, as rising disposable incomes allow more people to travel. In addition, improved transportation networks and infrastructure make destinations more accessible, while technological advancements enhance booking processes and overall travel experiences. Five-star hotels are often located in prime tourist destinations, which strengthens their reputation and prestige and attracts both leisure and business travelers seeking premium, high-quality experiences. For example, in March 2023, according to the Croatian Bureau of Statistics, a Croatia-based government agency, tourist arrivals in Croatia reached around 2 million, representing a 12% increase compared with November 2022. Overnight stays also rose to 5.3 million, reflecting a 9% year-on-year increase, highlighting continued tourism growth even during the off-peak season. Therefore, development in the tourism sector is fueling the growth of the five-star hotel market.

Major companies operating in the five-star hotel market are expanding their portfolios by developing non-gaming luxury hotels equipped with premium facilities to diversify their offerings. Non-gaming hotels are high-end accommodations that do not include casino or gambling operations and instead focus on delivering luxury amenities such as fine dining restaurants, spa and wellness centers, conference facilities, and recreational experiences to appeal to a wide range of guests. For instance, in March 2024, HCW Development LLC, a US-based real estate development and property management company, launched Caesars Republic Scottsdale in Scottsdale, Arizona. This property represents the first non-gaming hotel under the Caesars brand in the United States, signaling a strategic expansion into the luxury lifestyle hotel segment. The hotel features a modern 11-story glass design with refined textures, strong architectural elements, and a stylish interior that blends soft curves with bold design accents.

In December 2023, Dutco Group, a UAE-based hospitality company, acquired Mar Hall Hotel for $19.37 million. Through this acquisition, Dutco Group plans to transform Mar Hall Hotel, Golf, and Spa Resort into a premier luxury destination by introducing new woodland lodges, upgrading leisure and spa facilities, and fully refurbishing guestrooms and public areas. Mar Hall Hotel, Golf & Spa Resort is a UK-based five-star property known for its luxury accommodations, golf facilities, and spa services.

Major companies operating in the five star hotel market are Marriott International Inc, Radisson Hotel Group, Rosewood Hotels And 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., 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 And Resorts, Capella Hotel Group, Leela Palaces And Resorts Limited, The Oberoi Group, The Indian Hotels Company Limited, Anantara Hotels Resorts And Spas.

North America was the largest region in the five star hotel market in 2025. The regions covered in the five star hotel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the five star hotel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The five star hotel market includes revenues earned by entities by providing services such as luxury accommodation, fine dining, concierge services, and personalized guest experiences. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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