Ultra-luxury hotels worldwide recorded new all-time high prices in 2025, confirming the significant resilience of demand from high-end travelers, even in an environment of slowing growth in the broader luxury goods market and increased pressures in other segments of hospitality.
According to data from the CoStar analysis company, the revenue per available room (RevPAR) in ultra-luxury hotels increased by 10.6%, a rate that is more than three times the corresponding increase in the overall hotel industry, demonstrating the differentiation of this category from the rest of the accommodation markets.
During the same period, the average daily room rate (ADR) reached a new record high, reaching approximately $1,245, marking an increase of more than 8% compared to the previous year, while occupancy rates also increased by approximately 2.3%. These data show that high prices did not affect the demand of the more affluent travelers, who continue to prioritize high-level experiences, viewing travel not just as a stay, but as an investment in quality of life, well-being, and lifestyle.
The strength of the category is largely due to the increase in wealth of the upper income strata, which benefited from the historically high stock markets and the overall rise in asset values in recent years. Meanwhile, hotel groups are adopting a strategy of targeting a smaller number of higher-value customers, investing in upgraded services and facilities that enhance their pricing power.
In this context, ultra-luxury units are constantly expanding their wellness and longevity services, incorporating advanced technologies and specialized treatments, such as hyperbaric oxygen therapy, specialized spas, rehabilitation therapies, aesthetic laser applications, and other high-end wellness services. The expansion of these amenities allows hotels to support higher room rates, as the hospitality experience becomes a comprehensive health, wellness, and lifestyle package.
In contrast, the upscale and broader luxury categories saw significantly lower revenue growth, ranging from approximately 2.1% to 5.8%, while mid-range and economy hotels even saw revenue declines in some markets as price-sensitive travelers cut back on spending. This image is also linked to developments in the luxury goods market, where sales of personal luxury goods, such as clothing and jewelry, are estimated to have fallen by about 2% in 2025, amounting to approximately 358 billion euros.
Despite the positive trend of ultra-luxury hotels, analysts point out that the continuation of the strong rise in prices will depend on the maintenance of the strong economic position of wealthy travelers and the ability of hotels to continue investing in innovative services and high-value experiences in a market where high-income customers have increased demands and zero tolerance for a decline in service quality.
