The world's most expensive hotels charge record prices and challenge the slowdown in the luxury sector
The world's most expensive hotels have set record prices, attracting wealthy travelers despite an overall slowdown in the luxury market.
In a surprising trend, the world's most luxurious hotels have reported a significant increase in their pricing, with record rates being reached last year. Wealthy travelers have shown a willingness to spend greatly for premium amenities such as hyperbaric oxygen therapy and sound baths, defying the broader deceleration seen in the luxury sector. According to analysis firm CoStar, the revenue per available room in ultra-luxury hotels rose by 10.6% last year, a figure that is more than three times the annual growth rate of the hotel industry overall.
The average daily rate for an ultra-luxury room hit a historic high of $1,245 (approximately R$6,400), representing an increase of over 8% compared to 2024. This increase in costs has not deterred the wealthiest travelers, as evidenced by a 2.3% rise in occupancy rates. Unlike lower-market customers, who have been adversely affected by escalating prices, high-end clients continue to show resilience, signaling a distinctive shift in focus for luxury hotels toward attracting those willing to pay more.
This trend indicates a strategic pivot within the luxury hospitality sector, where the priority has shifted to cater to affluent guests whose disposable income has increased. The rise in room rates and enhancements in service offerings suggest that hotels are not only looking to maintain their margins but are also banking on the affluent travelers' strong demand for unique and exclusive experiences, solidifying their positioning in the recovering luxury market.