Luxury Segment Dominates U.S. Hotel Market Outlook Through 2030

The U.S. hotel market is riding a wave of growth, with a new report forecasting steady expansion through 2030—and luxury properties are leading the charge. According to the “USA Hotel Market Outlook 2025–2030” from ResearchAndMarkets.com, luxury hotels dominate the sector thanks to travelers’ growing demand for premium, personalized experiences.

Valued at $260 billion, the market has rebounded strongly post-pandemic. Domestic trips surged past 1.1 billion in 2024, while international visitation rose 5 percent year-over-year to 79 million. That travel momentum, coupled with higher disposable incomes and an “experiences over things” mindset among millennials and Gen Z, has fueled demand at the top end of the market.

At the same time, hotels face challenges—from economic volatility and inflation to rising competition from Airbnb and other alternative lodging options. While occupancy rates are still slightly below 2019 peaks due to shifting travel patterns, hotels are offsetting with higher average daily rates (ADRs).

Tech, Sustainability and Shifting Consumer Behavior

The report highlights three major trends reshaping the market:

• Sustainability as a differentiator – Eco-friendly practices are increasingly important to consumers, with hotels that implement green initiatives positioned to capture loyalty from environmentally conscious travelers.
• Smart technology and AI integration – From mobile check-in to AI-powered concierge services, hotels investing in tech see gains in both guest satisfaction and operational efficiency.
• Personalization – Guests—especially younger, affluent ones—are seeking unique, high-touch experiences, reinforcing the appeal of luxury properties and boutique hotels.

Major Markets and Brand Moves

Urban centers continue to anchor the U.S. hotel sector, with New York, Las Vegas, and Los Angeles named as the strongest markets. Southern destinations like Miami and Orlando are also significant growth drivers thanks to their mix of leisure demand and business travel.

On the brand side, Marriott added 12,200 net rooms in Q1 2025 and expanded its pipeline to nearly 3,800 properties. While it trimmed RevPAR growth forecasts amid economic uncertainty, the company raised its net rooms growth outlook to 5 percent, helped by the planned acquisition of citizenM. This underscores a wider industry confidence in long-term travel demand, even amid short-term market pressures.

Takeaway for Advisors

For travel advisors, the findings underline two key opportunities:

1. Luxury demand remains resilient, even in uncertain times, giving advisors leverage when positioning premium experiences to affluent clients.
2. Sustainability and tech-forward amenities are selling points across all traveler segments, from eco-conscious millennials to business travelers seeking efficiency.

As the report makes clear, the U.S. hotel market is competitive and evolving quickly. Advisors who emphasize personalization, highlight eco-friendly choices, and stay ahead of brand developments will be best positioned to serve clients across the spectrum.

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