The number of $1000-a-night hotels around the world has jumped significantly, with big increases in Europe and the US.
In recent years, the global hospitality industry has witnessed a significant increase in the number of hotels commanding average daily rates (ADR) of more than $1,000 per night. This trend underscores the robust demand for luxury accommodations and the willingness of high-end travelers to invest in premium experiences.
Research from CoStar looked at global hotel ADR for 2024 and 2019 and found that, the number of hotels charging an ADR of more than $1,000 had jumped from 150 to 460 over those years. By region, four-digit room rates have tripled in the Americas and Europe and more than doubled in the Asia Pacific and the Middle East and Africa region. CoStar calls this surge “a global phenomenon.”
As ADR represents the average for all rooms sold, the figure also implies that rates can actually be markedly higher.
Half of the 10 countries with the fastest growing number of $1,000 ADR hotels are in Europe, including Italy and France. And the number of US hotels charging $1,000 ADR almost quadrupled, from 22 in 2019 to 80 in 2024.
The report states that, “Anecdotally, hotel operators have reported that in 2020, many of their guests felt unable or unwilling to travel and that in the following years, they wanted to make up for lost time. In addition, the strong desire to be with loved ones and family members gave rise to multigenerational trips, requiring more and larger accommodations. This allowed operators to yield the more desirable room types such as suites with multiple bedrooms.”
The number may also be an underestimate, as the hotels in the sample report their monthly and weekly revenues to CoStar, while some smaller, ultra-luxury hotels, such as lodges in the African savannah or boutique bed and breakfasts in rural Europe may not participate in the CoStar reporting.
CoStar predicts that this growth will continue, driven by hotels continuing to monetize demand for their high-end offerings and developers continuing to build properties designed for high-net-worth travelers.
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