Luxury hotel demand grows

North American travelers in particular have flocked to traditional European luxury destinations since the end of the pandemic

Luxury travelers increasingly demand exceptional experiences, requiring hoteliers to focus on finer details, says Robert Mangan of Bain Capital. This trend is now influencing lower-tier hotel chains as well.

Key takeaways

• Defining "luxury" in the hotel industry has become increasingly complex, says Olivier Harnisch, former CEO of Dubai's Emaar Hospitality Group. "Luxury now means different things to different people," he explains;
• Harnisch highlights the concept of "lean luxury," exemplified by brands such as Ruby Hotels and Rove Hotels. Ruby Hotels, based in London with 20 locations across Europe, coined the term to describe a blend of high-end amenities and a streamlined operating model;
• In Europe, luxury hotels recorded an average daily rate of $489.09 through October, an increase of 5.2 percent from the same period last year. In the Middle East and Africa, the average rate was $313.56, according to CoStar data.

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