Luxury hotels are booming

London (England, not Ontario) is set to welcome at least 13 new high-end hotels, some of which claim to offer seven-star accommodation—a number of stars we didn’t even know was possible. 

Driving the news: The fun began earlier this week with the launch of the £1,300-a-night Peninsula London. Located near Hyde Park, the £1.1 billion resort offers a spa, 24-hour concierge service, and fleet of luxury cars available to guests, including a 1935 Rolls-Royce.

  • Peninsula will face stiff competition right away, with the £1.5 billion Raffles London set to open later this month inside the halls of Winston Churchill’s Old War Office.

  • In total, the British capital will add over 183,000 rooms by 2025—more than any place on Earth outside of China.  

Zoom out: While few places are as prolific as London right now for new high-end resorts, the luxury hotel boom is hitting tourist destinations across the world from Texas to Tokyo

  • By year’s end, global hospitality leader Marriott will have opened 35 new luxury hotels under its Ritz-Carlton, W, and St. Regis brands.

  • Last week, Aman Group—which runs some of the world’s most expensive hotels—received a fresh US$360 million round of funding from UAE investors. 

Why it’s happening: With economic factors set to drive down travel demand for the average fanny pack and disposable camera tourist, hotels are now courting the growing caste of the uber-wealthy who, quite literally, have more money than they know what to do with.

  • One luxury trip planner told Insider that his bookings surged 34% year-over-year in the first six months of 2023, with the average price of a vacay sitting at ~US$35,000. 

Bottom line: Per a report from real estate services giant JLL, the luxury hotel biz is poised to keep growing over the next decade, with luxury rooms set to account for 7.6% of global hotel supply by 2033. However, we’ll be just fine staying at a Best Western or Super 8.—QH