Demand for luxury tourism and hospitality is expected to grow faster than for any other industry segment, according to a McKinsey & Company research paper.
This growth is being powered in part by a sharp rise in the number of individuals globally with net worth between $1 million and $30 million. But it’s also resulting from a large and expanding base of aspiring luxury travelers with net worth between $100,000 and $1 million, many of whom are younger and increasingly willing to spend larger shares of their wealth on upscale travel options.
This upswing has not been lost on hotel brands who are increasingly investing in their lifestyle and luxury segments. Traditionally known for its midscale offerings, Choice Hotels International has expanded into the upscale and lifestyle segments through brands like Cambria Hotels, the Ascend Hotel Collection, and its acquisition of Radisson Hotels Americas in 2022.
Indy Adenaw, SVP upscale brands, Choice Hotels International, said the goal was to attract new guests and developers: “We think there is an opportunity to try and create a difference in this tier, particularly around growth and really understanding the financial side of how these hotels operate.”