The boutique hotel market in the United States is set to explode between 2025 and 2035, thanks in part to the increasing consumer friends for distinct, personalized, unique, and experiential travel lodging. A new generation of boutique hotels rose to meet this demand, with their thoughtful design, carefully curated experiences and prioritization of the destination’s culture.

Metric	Value
Market Size in 2025	USD 19.47 Billion
Projected Market Size in 2035	USD 31.42 Billion
CAGR (2025 to 2035)	4.9%

Region	CAGR (2025 to 2035)
California	5.2%

Region	CAGR (2025 to 2035)
New York	5.1%

Region	CAGR (2025 to 2035)
Texas	4.9%

Region	CAGR (2025 to 2035)
Florida	5.0%

Company/Organization Name	Estimated Market Share (%)
Kimpton Hotels & Restaurants	18-22%
The Standard Hotels	12-16%
Ace Hotel Group	10-14%
1 Hotels	8-12%
Nobu Hotels	5-9%
Other Boutique Hotel Brands & Independent Properties (combined)	30-40%

Boutique hotels focus on providing luxury accommodations with an emphasis on design, individualization and quality of service. However, a surge in pent-up demand for travel following the pandemic has resulted in robust revenue growth every year since 2020. Over the five years to 2025, revenue has grown at a CAGR of 8.7% to $36.5 billion, including a 1.9% boost in 2025 alone. Travelers have grown increasingly weary of cookie-cutter hotels geared toward a mass audience. Instead, they have begun shifting toward new and more intimate types of hotels, especially in urban locations. These hotels typically have between 10 and 250 rooms and offer unique architecture and design themes targeted toward a market of wealthier 20- to 55-year-olds. Boutique hotels often center establishments around a brand-name chef's restaurant or a trendy lounge, providing their boutique hotels with a sizeable revenue stream and instant brand recognition. Rising consumer spending and per capita disposable income have elevated demand for boutique hotels. However, heightened industry competition and inflation have elevated hotel operating costs, hampering profit. The industry will strengthen through the end of 2030 as domestic and international trips climb, driving demand and industry revenue. Further, major global events will draw a substantial number of international visitors to the US, who are willing to incur higher expenses on accommodations. Merger and acquisition activity will continue as large chains boost their market share by purchasing small boutique chains or developing their boutique brands. Overall, revenue will expand at a CAGR of 2.2% to reach $40.7 billion through the end of 3030.

The United States Luxury Hotel Market Report is Segmented by Room Type (Standard Luxury Room, Suites, Villas/Bungalows, Penthouses & Presidential Suites), Booking Channel (Direct Booking, Online Travel Agencies, and Other), Service Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts, Other Service Types), and Geography (Northeast, Midwest, South, West). The Market Forecasts are Provided in Terms of Value (USD).

The market size of the boutique hotel industry in the United States reached **** billion U.S. dollars in 2023. A boutique hotel is a special type of small hotel that has less than 100 rooms. These types of hotels are usually very upscale, often located in large, trendy shopping areas of a city, and they offer personalized design and service as a major selling point.

The boutique hotel market value is estimated to expand at a CAGR of 6.9% over the assessment period. In 2024, the market is expected to generate a revenue worth US$ 9,962.60 million. By 2034-end, the market size is forecast to expand to US$ 19,415.50 million.

Attributes	Key Insights
Estimated Boutique Hotel Market Size (2024E)	US$ 9,962.60 million
Projected Boutique Hotel Market Valuation (2034F)	US$ 19,415.50 million
Value-based CAGR (2024 to 2034)	6.9%

Category-wise Boutique Hotel Market Insights

Leading Tour Type	Package Traveler
Value Share (2024)	51.30%

Leading Booking Channel	Online Booking
Value Share (2024)	46.50%

Global Boutique Hotel Market Dynamics by Country

Countries	Forecast CAGR (2024 to 2034)
United States	5.30%
Canada	7.20%
Spain	6.60%
China	7.80%
India	8.40%

US Luxury Hotel Market size was valued at USD 27.1 Billion in 2024 and is projected to reach USD 40 Billion by 2032, growing at a CAGR of 5.5 % from 2025 to 2032.Key Market Drivers:High-Net-Worth Individuals (HNWI) Population Growth: The growing rich population in the United States strongly influences luxury hotel demand. According to the Federal Reserve's Survey of Consumer Finances, the number of US families with net worths greater than $1 million climbed by 32% between 2019 and 2022, reaching around 23.7 million. This increasingly rich population has more disposable cash to spend on premium vacation experiences.Business Travel Recovery: According to the U.S. Bureau of Labor Statistics, corporate travel expenditure in the hospitality industry will have recovered to 85% of pre-pandemic levels by Q4 2023, with luxury hotels benefiting the most. The U.S. Travel Association reported that business travel budgets climbed by 17% in 2023 compared to 2022, with a noticeable trend toward luxury lodgings.Experiential Luxury Spending Trends: According to the US Bureau of Economic Analysis (BEA) personal consumption data, spending on luxury lodgings and experiences increased by 24% between 2021 and 2023, exceeding the 16% growth in general hotel expenditure over the same time. This mirrors a larger consumer trend toward experiencing luxury over tangible things.

Market Size statistics on the Boutique Hotels industry in the US

The number of businesses in the boutique hotel sector in the United States amounted to *** thousand in 2022, up from the previous year's total of **** thousand. Over the past decade, the number of businesses in this sector peaked in 2022.

Boutique Hotels Market Outlook

The global boutique hotels market is projected to grow from USD 15 billion in 2024 to USD 25 billion by 2032, driven by increasing consumer preference for personalized experiences and unique accommodations. The market is observing a compound annual growth rate (CAGR) of 6.5% over the forecast period.

The growth of the boutique hotels market is majorly attributed to the rising demand for distinctive and personalized lodging experiences. Unlike traditional hotels, boutique hotels offer a unique ambiance, intimate settings, and personalized services, which are becoming increasingly appealing to modern travelers. The millennial and Gen Z demographics, in particular, exhibit a preference for experiences over material goods, driving the demand for stay experiences that offer authenticity and individualized attention. This shift in consumer preferences is a major factor propelling the growth of the boutique hotels market.

Another significant growth factor is the increasing disposable income and growing middle-class segment across various regions. With higher disposable incomes, travelers are more willing to spend on premium and unique stay experiences. Additionally, the rise in global tourism, facilitated by affordable travel options and improved connectivity, has expanded the customer base for boutique hotels. Travelers are actively seeking out properties that offer a unique blend of luxury, comfort, and local culture, which boutique hotels are ideally positioned to provide.

The technological advancements in hospitality management systems and online booking platforms have also played a crucial role in the market’s growth. The proliferation of online travel agencies (OTAs) and direct booking websites has made it easier for travelers to discover and book boutique hotels. These platforms offer comprehensive information, reviews, and competitive pricing, making boutique hotels more accessible to a broader audience. Additionally, the integration of technology in hotel management allows boutique hotels to streamline operations and enhance customer service, contributing to a superior guest experience.

In the realm of modern healthcare, Angio Suites have become an indispensable part of medical facilities, offering advanced imaging and interventional capabilities. These suites are designed to provide a comprehensive environment where diagnostic and therapeutic procedures can be performed seamlessly. The integration of state-of-the-art imaging technology allows for precise visualization of vascular structures, enabling healthcare professionals to conduct minimally invasive procedures with enhanced accuracy. This not only improves patient outcomes but also reduces recovery times, making Angio Suites a critical component in the delivery of efficient and effective healthcare services. As the demand for advanced medical care continues to rise, the adoption of Angio Suites is expected to grow, driven by the need for improved diagnostic and treatment options.

From a regional perspective, North America and Europe hold a significant share of the boutique hotels market. These regions are characterized by a high concentration of luxury and lifestyle boutique hotels, driven by a strong tourism industry and affluent customer base. However, Asia-Pacific is emerging as a lucrative market, fueled by rapid urbanization, booming tourism, and a growing middle-class population with a rising preference for luxury accommodations. The Middle East & Africa and Latin America also present growth opportunities, although these regions currently hold a smaller market share compared to North America, Europe, and Asia-Pacific.

Type Analysis

The boutique hotels market can be segmented based on type into luxury boutique hotels, lifestyle boutique hotels, classic boutique hotels, and others. Luxury boutique hotels represent a significant segment, driven by the desire for high-end, bespoke experiences among affluent travelers. These hotels provide opulent amenities, superior service, and exclusive experiences that cater to discerning guests seeking premium stays. The focus on lavish interiors, personalized services, and unique settings makes luxury boutique hotels a preferred choice for travelers looking for exclusivity and sophistication.

Lifestyle boutique hotels are rapidly gaining popularity due to their emphasis on contemporary design, local culture, a

The United States Luxury Hotel Market was valued at USD 77.14 Billion in 2024 and is expected to reach USD 113.45 Billion by 2030 with a CAGR of 6.71%.

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Market Size	2024: USD 77.14 Billion
Forecast Market Size	2030: USD 113.45 Billion
CAGR	2025-2030: 6.71%
Fastest Growing Segment	Modern
Largest Market	South
Key Players	1. JW Marriott 2. Hyatt Corporation 3. Accor Hotels 4. InterContinental Hotels Group 5. Rose Wood Hotel 6. Rencho Valnecia Resort 7. Cavallo Point 8. Long Beach Lodge Resort 9. The Mark Hotel 10. Four Seasons Hotels and Resorts

The market size of the boutique hotel industry in the United States reached **** billion U.S. dollars in 2023. A boutique hotel is a special type of small hotel that has less than 100 rooms. These types of hotels are usually very upscale, often located in large, trendy shopping areas of a city, and they offer personalized design and service as a major selling point.

The US luxury hotel market is experiencing robust growth, with a market size of $73.10 billion in 2025 and a projected Compound Annual Growth Rate (CAGR) of 5.12% from 2025 to 2033. This expansion is driven by several key factors. Increased high-net-worth individual (HNWI) wealth and a rising preference for experiential travel are fueling demand for premium accommodations. The sector also benefits from ongoing investments in luxury hotel infrastructure, including renovations, expansions, and new property developments featuring unique amenities and personalized services. Furthermore, a growing emphasis on sustainability and wellness within the hospitality industry is attracting environmentally and health-conscious luxury travelers. Competition remains intense, with established players like JW Marriott and Hyatt Group facing challenges from independent boutique hotels and innovative brands emphasizing unique experiences. The forecast period (2025-2033) anticipates continued growth, albeit potentially at a slightly moderated pace due to factors such as economic fluctuations and global events. However, the enduring appeal of luxury travel and the continued focus on delivering exceptional guest experiences suggests a positive outlook for the market. Strategic partnerships, targeted marketing campaigns, and a focus on technological advancements will be crucial for luxury hotels to maintain their competitive edge and capitalize on emerging trends. Specific regional variations within the US market will likely reflect differing economic conditions and tourism patterns, with key metropolitan areas and popular vacation destinations showing particularly strong growth. The diversification of offerings, encompassing unique themes and personalized services tailored to individual traveler preferences, will be instrumental in sustaining the market's positive trajectory. Key drivers for this market are: Growing Trend of Availing Luxurious Lifestyle While Travelling. Potential restraints include: Changing Consumer Preferences, Rising Operational Costs. Notable trends are: Tourism Growth in United States is Driving the Market.

The United States luxury hotel market size reached approximately USD 32.08 Billion in 2024. The market is further projected to grow at a CAGR of 5.60% between 2025 and 2034, reaching a value of USD 55.32 Billion by 2034.

Number of Businesses statistics on the Boutique Hotels industry in the US

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%

The United States Hospitality Market Report is Segmented by Chain Scale (Luxury, Upper Upscale, Upscale, and More), by Type (Service Apartments, Budget & Economy Hotels, and More), by Service Model (Full-Service, Select-Service, and More), by End-User, by Distribution Channel, by Ownership & Management Model, by Property Size, and by Region. The Market Forecasts are Provided in Terms of Value (USD).

The US luxury hotel market is expected to grow from $73.10 million in 2025 to $128.28 million by 2033, at a CAGR of 5.12%. The market is driven by the increasing demand for luxury travel and the rising number of high-net-worth individuals. Additionally, the growing popularity of experiential travel and the increasing demand for personalization are also contributing to the growth of the market. The market is segmented by service type, theme, and region. The major service types include business hotels, airport hotels, suite hotels, resorts, and other service types. The major themes include heritage, contemporary, modern, and other themes. The major regions include North America, South America, Europe, Middle East & Africa, and Asia Pacific. Recent developments include: In January 2024, A 20-year partnership has been established between Marriott and MGM Resorts. The Marriott brand now includes 17 MGM properties in the US, including those in Las Vegas. As per the agreement, MGM's and Marriott's sales channels can be used to make property reservations., In June 2023, Hyatt Corporation announced that the World of Hyatt loyalty program has successfully merged the Dream Hotels brand, The Chatwal, The Time New York, and Unscripted properties. Members and visitors can now book these properties through Hyatt channels, giving them access to more stay options and lifestyle experiences.. Key drivers for this market are: Growing Trend of Availing Luxurious Lifestyle While Travelling. Potential restraints include: Changing Consumer Preferences, Rising Operational Costs. Notable trends are: Tourism Growth in United States is Driving the Market.

United States Hospitality Market size was valued at USD 223.93 Billion in 2024 and is projected to reach USD 250.45 Billion by 2032, growing at a CAGR of 4.87% from 2025 to 2032.

United States Hospitality Market Dynamics

The key market dynamics that are shaping the United States hospitality market include:

Key Market Drivers

Growing Demand for Unique and Personalized Experiences: There is a rising demand for tailored and personalized services in the hospitality industry. Travelers increasingly seek unique experiences that cater to their individual preferences, driving the need for custom-made packages, bespoke services, and immersive local experiences. According to the American Hotel & Lodging Association, 70% of consumers consider personalization an essential factor when choosing accommodation and services.

Rise in Domestic and International Travel: With the easing of pandemic-related restrictions, there has been a sharp increase in both domestic and international travel.

The North American hotels market, encompassing the United States, Canada, and Mexico, is a substantial and dynamic sector. With a 2025 market size of $40.16 billion and a projected Compound Annual Growth Rate (CAGR) of 8.50% from 2025 to 2033, significant expansion is anticipated. This growth is fueled by several key drivers. Increased tourism, both domestic and international, particularly within the US, contributes significantly. The rise of business travel, particularly in major metropolitan areas, further boosts demand. Additionally, the increasing popularity of leisure travel and the expansion of the middle class in North America contribute to the market's expansion. The market is segmented by service type (business hotels, airport hotels, suite hotels, resorts, and others) and geographic location. The US commands the largest market share due to its robust economy and extensive tourism infrastructure. Canada and Mexico, while smaller, also contribute significantly, particularly benefiting from tourism and proximity to the US. Competitive pressures from established players like Marriott, Hilton, and Hyatt, as well as emerging boutique hotels and independent operators, shape market dynamics. While the market outlook is positive, certain restraints exist. Economic downturns can impact business and leisure travel, reducing hotel occupancy rates. Seasonal variations in tourism also influence demand. Furthermore, rising construction costs and labor shortages pose challenges for new hotel development. However, the industry's adaptability, with innovations like enhanced technology integration and sustainable practices, mitigates these risks. The market's continued growth is strongly projected, driven by the factors mentioned above, despite these challenges. The forecast suggests a steady increase in market value throughout the 2025-2033 period, reflecting the market's overall strength and resilience. Specific regional breakdowns within North America require more granular data but the overall trend points towards continued robust growth. Recent developments include: July 2023: Choice Hotels acquired Radisson Hotel Group Americas. The deal was worth around $675 million, and with this deal, Choice Hotels acquired nine new brands, 624 hotels, and over 67,000 rooms., November 2022: Hyatt Hotel Corporation and Dream Hotel Group reached an agreement whereby Hyatt acquired Dream Hotel Group's lifestyle hotel brand and management platform, including the Dream Hotels, Chatwal Hotels, and Unscripted Hotels brands, with properties in some of the world's most prominent hotel markets across the Americas, Europe, and Asia., October 2022: Marriott International reached an agreement with Hoteles City Express, S.A.B. de C.V., to acquire the highly regarded City Express brand portfolio. The portfolio comprises 152 hotels, including 17,356 rooms across 75 cities in Mexico and three additional countries in Latin America. With this acquisition, Marriott is poised to become the largest hotel company in the Caribbean and Latin America, expanding its presence significantly in secondary and tertiary markets in the region.. Notable trends are: North America Dominates the Luxury Hotel Segment Globally.

Luxury Hotel Market Outlook

As per our latest research, the global luxury hotel market size in 2024 stands at USD 115.2 billion, reflecting consistent expansion fueled by rising disposable incomes, evolving travel preferences, and an increasing appetite for premium experiences. The market is projected to achieve a robust CAGR of 7.1% over the forecast period, reaching a value of approximately USD 214.4 billion by 2033. The growth trajectory of the luxury hotel sector is primarily underpinned by the surge in international tourism, a growing segment of high-net-worth individuals, and the widespread adoption of digital booking platforms. This comprehensive analysis delves into the factors driving the market, its segmental performance, and the regional outlook based on the latest industry trends and data.

The luxury hotel marketÂ’s growth is significantly propelled by the shifting consumer mindset toward experiential travel and bespoke services. Modern travelers, especially millennials and Generation Z, are increasingly seeking unique experiences that blend comfort, exclusivity, and personalized services. This trend has prompted luxury hotels to innovate their offerings, incorporating wellness programs, sustainable practices, and immersive local experiences. The integration of advanced technologies such as AI-driven concierge services, smart room automation, and contactless check-ins further enhances the guest experience, setting new benchmarks in luxury hospitality. The willingness of consumers to pay a premium for privacy, security, and customized amenities continues to drive the demand for high-end accommodations worldwide.

Another major growth factor is the expansion of business travel and the rise of global corporate events. With the resurgence of international conferences, exhibitions, and corporate retreats post-pandemic, luxury hotels are increasingly catering to business travelers by providing state-of-the-art meeting facilities, executive lounges, and tailored business services. The sector’s ability to adapt to the evolving needs of business clientele—ranging from flexible check-in/check-out options to hybrid meeting technologies—has positioned luxury hotels as the preferred choice for corporate stays. Additionally, strategic partnerships with airlines, credit card companies, and travel agencies have amplified the reach and appeal of luxury hotel brands, further strengthening their market presence.

Sustainability and wellness have emerged as pivotal themes in the luxury hotel market. As environmental consciousness grows among affluent travelers, luxury hotels are investing heavily in eco-friendly infrastructure, renewable energy, and sustainable sourcing. Initiatives such as zero-waste kitchens, organic spas, and green certifications are not only enhancing brand reputation but also attracting a new demographic of eco-conscious guests. The wellness tourism segment, encompassing holistic retreats, spa therapies, and fitness programs, is witnessing unprecedented demand, prompting luxury hotels to diversify their offerings and create value-added experiences that resonate with modern travelersÂ’ lifestyles.

The Palace Hotel, a renowned name in luxury hospitality, exemplifies the blend of historical elegance and modern luxury that many travelers seek today. Situated in prime locations, these hotels often occupy heritage buildings that have been meticulously restored to offer a unique blend of old-world charm and contemporary amenities. Guests at the Palace Hotel can expect a seamless integration of cultural heritage and modern comforts, providing an immersive experience that resonates with the discerning traveler. The emphasis on personalized service, coupled with exquisite dining options and state-of-the-art facilities, positions the Palace Hotel as a leader in the luxury hotel market. This approach not only attracts high-net-worth individuals but also appeals to those seeking a memorable and culturally enriching stay.

From a regional perspective, Asia Pacific is rapidly becoming the epicenter of luxury hospitality growth, driven by booming tourism in countries like China, India, Thailand, and Indonesia. North America and Europe continue to lead in terms of market share, benefiting from established luxury hotel chains, high inbound tourism, and robust business travel. The Middle East, particul