Wealthy travelers fuel a luxury hotel boom

Affluent guests are paying record rates as they seek space, privacy and deeply personalized experiences

Record-high luxury hotel prices in the U.S. aren’t slowing affluent travelers. Instead, wealthy guests are doubling down on exclusive stays, prioritizing space, privacy, personalized service and curated experiences — from multi-bedroom villas to tailored excursions. As they shift their spending from goods to high-touch, experience-driven travel, demand for luxury and ultraluxury hotels continues to surge even as midscale segments soften.

Key takeaways

• Record pricing: U.S. luxury ADR has climbed to $394, now $168 more than the next tier — a gap that was only $60 in 2008.
• Strong demand: Luxury bookings are up 2.5% year-to-date, contrasting with slight declines in lower-tier and midscale hotels.
• Ultraluxury growth: The most expensive hotels charge double typical luxury rates — about $2,600 in Paris and $1,560 in New York.
• Experience-first mindset: Affluent travelers increasingly prioritize memorable experiences over goods, favoring multigenerational trips and destination-heavy itineraries.
• Larger spaces and privacy: These guests increasingly book villas, multi-bedroom suites and even yachts rather than traditional rooms.
• Personalized service expectations: High-touch, anticipatory service — from butlers to staff who know guests by name — is a key driver of willingness to pay higher rates.
• Luxury brand expansion: High-end groups like Montage are doubling down on global expansion as revenue and future-year bookings accelerate.

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