The Luxury Accommodation industry has endured significant turbulence over the past five years, primarily due to shocks and ongoing impacts associated with the pandemic. Strict travel bans in 2020 led to a heavy reliance on domestic tourist traffic, causing sharp declines in revenue and profitability across the sector. Occupancy rates fell from 79.2% to 50.8% between 2018-19 and 2020-21, while RevPAR dropped by 42.2%. The industry also experienced a drop in employment, particularly among casual workers. However, the industry has shown resilience with rebounding occupancy rates and increased RevPAR driven by pent-up demand and the easing of travel restrictions. Employment levels have since surpassed pre-pandemic benchmarks, propelled by the reopening of international borders. The industry has also witnessed a flurry of new luxury hotel openings, placing further upwards pressure on employment numbers due to increasing labour demand. Despite a cost-of-living crisis causing a dip in domestic demand, occupancy rates and RevPAR have reached record highs, pushing up profit margins towards historical pre-pandemic levels. Overall, industry revenue is expected to grow at an annualised 6.8% over the five years through 2024-25, to total $8.8 billion. This trend includes an anticipated rise of 1.4% in 2024-25. The industry’s future will be shaped by several key factors, with inbound tourists from affluent markets expected to drive growth. However, the challenge will be to capture high-spending visitors through innovative marketing campaigns and loyalty programs. With more luxury hotels set to open over the next five years, incumbent establishments will need to find strategies to avoid complications associated with increasing market saturation and growing competition. However, improving domestic economic conditions should enhance demand from domestic travellers. Businesses that can achieve occupancy rates of 80.0% and above will be key to maintaining strong profit margins. Industry revenue is forecast to grow at an annualised 3.8% over the five years through 2029-30, to total $10.6 billion.

Hotels and resorts in Australia faced unprecedented challenges during the pandemic. Australia's border closures resulted in collapsing occupancy rates, a drastic reduction in employment numbers and a sharp drop in revenue. However, government stimulus and easing restrictions in 2022 led to a quick resurgence in revenue and employment, driven by heightened travel demand and the ability to raise room tariffs. Major hotels and resorts focused on luxury tourism, capitalising on international travellers' preference for high-end accommodation. This expanded the luxury segment and contributed to the swift post-pandemic recovery. Although occupancy rates remain below pre-pandemic levels, a consistent rise in average daily rates has pushed up revenue over the past few years. Hotels and resorts heavily rely on domestic tourism, which has struggled in recent years because of the cost-of-living crisis. Despite this, luxury tourism from international visitors has increased, with large hotel chains investing in partnerships with boutique hotels to cater to this market. A strong rebound in travel demand post-pandemic has seen profitability improve over the past few years. Overall, revenue is expected to climb by an annualised 4.9% to $14.8 billion over the five years through 2024-25. This includes a slight increase of 3.2% in the current year. Over the next few years, the Hotels and Resorts industry is set to see a considerable shift. International visitor arrivals are set to reach record levels by 2026-27, providing growth prospects for hotels and resorts. Yet, changes in regulations, like visa restrictions and international student caps, could cast a shadow over this positive outlook. Occupancy rates are set to remain stable, facilitating plans for growth strategies and expansion. Domestic tourism will also see slow yet steady growth thanks to improved economic conditions and easing cost-of-living pressures. Still, demand growth rates are set to diminish compared to the past few years, causing businesses to resort to promotional strategies, which will negatively impact profit margins. The high cash rate is projected to slow hotel construction after a period of active expansion. Still, the number of hotels and resorts is poised to climb. Despite revenue growth, intensifying internal competition from growing establishment numbers has the potential to constrict profit margins. On the positive side, government regulations affecting short-term rental platforms could relieve external competitive pressures, providing hotels and resorts with a pricing advantage. Overall, revenue is projected to climb at an annualised 2.6% through 2029-30, to $16.9 billion.

Australia’s luxury hotel market is expected to grow at 8.12% CAGR from 2025 to 2030, supported by increasing demand for premium accommodations in major tourist and business hubs.

The Australia luxury hotel market size is projected to grow at a CAGR of 1.80% between 2025 and 2034.

The report covers Asia-Pacific Luxury Hotel Companies and it is Segmented by Service Type (Business Hotel, Airport Hotel, Suite Hotel, Resort, and Other Service Hotels) and by Geography (China, India, Japan, Australia, Thailand, Vietnam, Rest of Asia-Pacific). The market size and forecasts for the Asia-Pacific Luxury Hotel Market are provided in terms of value (USD billion) for all the above segments.

According to Future Market Insights (FMI), the luxury hotel market is estimated at US$ 99.868 billion in 2023 and is projected to reach US$ 117.169 billion by 2033, at an anticipated CAGR of 5.3 % from 2023 to 2033.

Attribute	Details
Market HCAGR (From 2018 to 2022)	4.1%
Market Size - 2018	US$ 81.097 billion
Market Size - 2022	US$ 95.113 billion

Attribute	Details
Market CAGR (From 2023 to 2033)	5.3%
Market Size - 2023	US$ 99.868 billion
Market Size - 2033	US$ 117.169 billion

Country - Wise Insights

Attributes	Details
North America Market Share - 2023	24%
United States Market Share - 2023	6%
Australia Market Share - 2023	5.2%

Attributes	Details
Japan Market Share - 2023	4%
China Market CAGR (From 2023 to 2033)	6.5%
India Market CAGR (From 2023 to 2033)	4.5%

Attributes	Details
Europe Market Share - 2023	20.1%
Germany Market Share - 2023	3.5%
United Kingdom Market CAGR (From 2023 to 2033)	6.6%

Category - Wise Insights

Category	Room Type
Leading Segment	Luxury
Market Share	31%

Category	Type
Leading Segment	Business Hotels
Market Share	28%

As of December 2024, the hotel landscape in Sydney, Australia revealed a strong concentration of upscale and upper upscale accommodations, with almost ** percent of hotels falling into this category. In comparison, luxury hotels comprised only *** percent of Sydney's total hotels. This dominance of higher-end lodgings reflects Sydney's status as a premier destination for both business and leisure travelers. How does Sydney's hotel landscape compare with other Australian capital cities? While Sydney leads in upscale offerings, other major Australian cities show diverse hotel distributions. Melbourne, for instance, has a more balanced hotel mix, with nearly ** percent upscale and upper upscale hotels, complemented by almost ** percent luxury accommodations, and around ** percent midscale and upper midscale hotels. This variety caters to a wider range of visitor preferences and budgets. Brisbane stands out with almost ** percent of its hotels in the luxury category, indicating a strong focus on ultra-high-end tourism. These variations highlight the unique positioning of each city in Australia's competitive tourism market. Travel booking trends Despite challenges posed by the COVID-19 pandemic, Australia's tourism and travel accommodation sectors show signs of recovery. Hotels and flight tickets emerged as the most popular travel product bookings among Australians in a 2024 survey, indicating a resurgence in both domestic and international travel. Booking.com remained the top choice for online hotel reservations among Australian consumers in a 2024 survey, followed by Airbnb. As the industry rebounds, the diverse hotel offerings across Australian cities are well-positioned to cater to a diverse range of traveler preferences and budgets.

The Asia-Pacific (APAC) luxury hotel industry is projected to experience a significant growth trajectory, with a market size anticipated to reach USD XX million by 2033, expanding at a CAGR of 8.00%. The industry's growth is attributed to various driving factors, including the rising disposable income of affluent travelers, increasing urbanization, and the expansion of the tourism and hospitality sector in the region. Emerging trends such as personalized guest experiences, sustainable practices, and technological advancements are also shaping the industry landscape. Key segments of the APAC luxury hotel industry include product types such as business hotels, airport hotels, holiday hotels, and resorts and spas. Geographically, China, India, Japan, Australia, Thailand, Vietnam, and the rest of the Asia-Pacific region contribute to the industry's growth. Leading companies operating in the market include The Okura Tokyo, St. Regis Hotel, Bellagio Shanghai, Mandarin Oriental Hotel Group, and Saffire Freycinet, among others. The report provides a comprehensive analysis of the historical, current, and projected market performance, considering both regional and segment-specific insights. The Asia-Pacific (APAC) luxury hotel industry is a dynamic and rapidly growing market, driven by rising disposable incomes, increasing tourism, and a growing middle class. The industry is characterized by a high degree of concentration, with a few major players accounting for a significant share of the market. These players include The Okura Tokyo, St Regis Hotel, Bellagio Shanghai, Mandarin Oriental Hotel Group, Saffire Freycinet, The Reverie Saigon, The Indian Hotels Company Limited, Hyatt Group, JW Marriott, The Nai Harn, and The Peninsula Shanghai. The APAC luxury hotel industry is also characterized by a number of trends, including the increasing popularity of lifestyle hotels, the rise of experiential travel, and the growing importance of technology. These trends are expected to continue to shape the industry in the coming years. Recent developments include: In March 2023, TFE Hotels officially opened its doors at its newest South Australian address, the Vibe Hotel Adelaide. The launch of the 123-room, design-led Vibe hotel signifies the completion of the Flinders East precinct., In January 2023, Hyatt Hotels Corporation announced the opening of Andaz Pattaya Jomtien Beach, marking the debut of the Andaz brand in Thailand., Bulgari Hotels & Resorts is pleased to announce the opening of Bulgari Hotel Tokyo at 2-2-1 Yaesu, Chuo-ku, on April 4th, 2023. The new hotel will be the eighth gem of the Bulgari Hotels & Resorts collection, bringing Bulgari's contemporary Italian style and glamour to the capital of Japan.. Key drivers for this market are: Internet Penetration is Driving the Market. Potential restraints include: Government Regulations are Restraining the Market. Notable trends are: Rising Population Preferring Leisure Vacations Contributes to the Market Growth.

As of December 2024, the hotel landscape in Melbourne, Australia showcased a diverse range of accommodations, with upscale and upper upscale hotels dominating the market at around ** percent. The luxury hotels category followed, accounting for almost ** percent of hotels in the city. Differing hotel landscapes across Australian cities While Melbourne boasts a more balanced mix of hotel categories, several other Australian cities present distinct profiles. Sydney, for instance, has an even stronger focus on upscale and upper upscale accommodations, with almost ** percent of its hotels falling into this category. In contrast, Adelaide stands out with a high proportion of luxury hotels, accounting for almost ** percent of its total. Perth, similar to Melbourne, has a high concentration of upscale and upper upscale hotels but differs with a larger midscale and upper midscale segment at around ** percent. These variations highlight the diverse strategies employed by different Australian cities to cater to various traveler preferences and market segments. Fostering hotel loyalty As the Australian hospitality industry recovers from the impacts of COVID-19, hotel loyalty programs play a crucial role in attracting and retaining customers. The Accor Live Limitless/Plus rewards scheme leads as the most popular hotel loyalty program among Australians, followed by Hilton Honors and IHG One Rewards. When it comes to hotel reward scheme benefits, Australian consumers are most enticed by complimentary breakfasts and room upgrades, with around ** percent of respondents valuing these perks, respectively. Other highly desired benefits include discounted stays, early check-in, and late check-out options.

The COVID-19 pandemic considerably disrupted the Motels industry, as border closures and lockdowns significantly impacted demand. Consequently, industrywide revenue took a hit during 2019-20 and 2020-21. However, domestic travellers, government stimulus and state government travel vouchers contributed to its partial recovery. Moreover, high household discretionary incomes in 2020-21 and 2021-22 prompted a surge in domestic tourism, as high savings over these years supported expanded spending on travel in 2022-23, benefiting demand for motels. However, high inflation rates over 2023-24 and 2024-25 adversely impacted demand from domestic consumers. Despite having to compete with multiple accommodation substitutes, the post-pandemic rebound has allowed motels to cover fixed costs more easily, contributing to a rise in profitability. Australia’s ongoing housing crisis has also led to an increase in demand for motel rooms, with many providing long-term shelter to individuals and families struggling to find success in the competitive housing market. Overall, industry revenue is expected to decline an annualised 7.2% over the past few years through 2024-25 to $4.0 billion. This includes an estimated drop of 0.3% in 2024-25. The outlook for the industry over the next few years is promising due to forecast growth in tourist activity. Household discretionary income is set to climb as inflationary pressures ease, bumping up spending on travel. As Australia’s population continues to age, a greater number of citizens will prefer domestic travel over outbound travel, boosting demand for motels across the country. Competitive pressures from short-term rental accommodation are also set to decline in the coming years, as rising housing demand and growing rental prices cause a shift towards long-term leases rather than short-term accommodation. Increasing taxation legislation will also aim to shift properties towards the long-term rental market, further reducing competition and enabling motels to raise their prices, boosting profitability. However, luxury travel trends will continue to pose a significant challenge to industry businesses. Overall, revenue is forecast to climb an annualised 2.7% over the next few years through 2029-30, to $4.5 billion.

As of December 2024, in Adelaide, Australia, around ** percent of the hotels were labeled as luxury. The highest concentration of hotels in the city were in the upscale and upper upscale category.

Market Size statistics on the Luxury Accommodation industry in Australia

Australia Tourism Accommodation: By Class: Luxury & Upper Upscale Classes with 10 or More Rooms: Occupancy Rate data was reported at 80.788 % in 2017. Australia Tourism Accommodation: By Class: Luxury & Upper Upscale Classes with 10 or More Rooms: Occupancy Rate data is updated yearly, averaging 80.788 % from Jun 2017 (Median) to 2017, with 1 observations. Australia Tourism Accommodation: By Class: Luxury & Upper Upscale Classes with 10 or More Rooms: Occupancy Rate data remains active status in CEIC and is reported by Tourism Research Australia. The data is categorized under Global Database’s Australia – Table AU.Q018: Tourism Accommodation Statistics: Annual.

As of December 2024, Brisbane was home to one of the highest concentrations of luxury hotels in Australia, with just under ** percent of the hotels falling into the luxury category. Brisbane's hotel mix also includes a significant proportion of midscale and upper midscale options, accounting for about ** percent of the city's total hotel landscape. Australia's domestic tourism trends Brisbane not only boasts an impressive array of luxury hotels, but ranks third in popularity among domestic overnight visitors across leading local destinations in Australia. Sydney and Melbourne lead as the most-visited destinations, with Brisbane following closely behind. This ranking aligns with spending patterns, as Melbourne and Sydney also dominated in terms of domestic overnight visitor expenditure in 2023, with tourists spending over ** billion and **** billion Australian dollars respectively in these cities. Expenditure in Brisbane came to just shy of *** billion Australian dollars during the same period. Online booking preferences in Australia When travelers plan their stays in Brisbane and other Australian cities, online platforms play a crucial role in the booking process. Booking.com emerged as the preferred choice for hotel and private accommodation reservations among Australian consumers. In comparison, for those seeking package holiday bookings, Flight Centre takes the lead. These online booking trends highlight the importance of digital platforms in shaping the travel experiences of both domestic and international tourists and connecting visitors with diverse hotel offerings.

Number of Businesses statistics on the Luxury Accommodation industry in Australia

Australia Tourism Accommodation: By Class: Upscale & Upper Mid Classes with 10 or More Rooms: Occupancy Rate data was reported at 74.977 % in 2017. Australia Tourism Accommodation: By Class: Upscale & Upper Mid Classes with 10 or More Rooms: Occupancy Rate data is updated yearly, averaging 74.977 % from Jun 2017 (Median) to 2017, with 1 observations. Australia Tourism Accommodation: By Class: Upscale & Upper Mid Classes with 10 or More Rooms: Occupancy Rate data remains active status in CEIC and is reported by Tourism Research Australia. The data is categorized under Global Database’s Australia – Table AU.Q018: Tourism Accommodation Statistics: Annual.

As of December 2024, in Perth, Australia, the highest concentration of hotels in the city were in the upscale and upper upscale category, with around ** percent of the hotels in this category. In comparison, the midscale and upper midscale category comprised around ** percent of the hotels, and just over ** percent were labeled as luxury.

Employment statistics on the Luxury Accommodation industry in Australia

Australia Travel & Tourism market was valued at USD 16.17 billion in 2024 and is anticipated to grow USD 18.42 billion by 2030 with a CAGR of 2.25%

Pages	82
Market Size	2024: USD 16.17 Billion
Forecast Market Size	2030: USD 18.42 Billion
CAGR	2025-2030: 2.25%
Fastest Growing Segment	Online
Largest Market	Australia Capital Territory & New South Wales
Key Players	1. Qantas Airways Limited 2. Virgin Australia Airlines Pty Ltd 3. Marriott International, Inc. 4. Hilton International Australia Pty Limited 5. Accor Australia & New Zealand Hospitality Pty Limited 6. Intro Travel Pty Ltd. 7. G Adventures Pty Ltd 8. Ultimate Adventure Travel Pty Ltd. 9. Intrepid Travel Australia Pty Ltd. 10. Bucket List Group Travel

According to data from the UNWTO, there were around ***** hotels and similar establishments in Australia in 2022. This reflected an increase from approximately ***** hotels and similar establishments across the country in 2013. Hotel industry in Australia Australia is a popular travel destination, welcoming millions of tourists every year. Since 2022, the country’s tourism and hotel sector has been on the road to recovery after Australia’s international travel ban was lifted in February that year. In 2021, the number of rooms in hotels and similar accommodation establishments in Australia increased, with hotel occupancy rates recovering across all states. Nevertheless, the gross value added of hotels and similar accommodation establishments to Australia’s economy witnessed a slight decrease in value that year. Private accommodation in Australia The leading accommodation types for international visitors to Australia are rented houses or apartments, as well as a friend or relative’s property. In 2022, the leading websites for hotel or private accommodation online bookings in Australia were booking.com and Airbnb. Melbourne was the leading location for Airbnb listings in Australia as of February 2019, followed by Surfers Paradise in Queensland and Point Nepean in Victoria.