Signal Luxury hotels grew nearly 6% from 2023 to 2025 against about 3.5% for hotels overall

Summary

This signal measures how the top end of the hotel market has performed compared with the market as a whole. McKinsey reports that luxury hotels grew by close to 6 percent from 2023 to 2025. Hotels in general expanded by about 3.5 percent over the same period, leaving a gap of roughly two and a half points. The report cites the figure as an example of luxury travel categories outpacing their non-luxury counterparts. It supports the view that a segment of consumers is still willing and able to pay for premium experiences away from home. At the same time, the report stresses that cost remains the main purchase criterion for most, so the premium segment is only one side of a divided market.