In the hotel world, regardless of the hotel classification or brand collection, a €1,000 average daily rate has always been considered the true threshold of luxury. It is a veritable empyrean of ultra-exclusive properties, the prerogative of the privileged few, the result of a rare combination of top destinations, prestigious buildings and impeccable service.
However, the enduring polarization of the market, the shift in consumer preferences away from material goods towards experiential products, and the desire to travel after the pandemic have, boosted the number of HNWIs willing to spend exorbitant sums for an elite stay. A trend of immeasurably greater significance than inflation, that has led many more hotels to exceed the €1,000 average daily rate threshold. Worldwide CoStar data tells us that in the first half of 2019 just 150 hotels could boast an average rate above triple digits. This year they are up to 460
The phenomenon is global, but destinations such as the United States, France and especially Italy are among those that have benefited most. In the USA the number of hotels rose from 22 to 80; in Italy from just under 20 to around 70; in France from around 20 to almost 50. Growth in Europe was driven chiefly by demand from the US and also benefited from the strength of the dollar. All told, in the Old Continent and the Americas, hotels above the $1,000 average daily rate have almost tripled, while in the Asia-Pacific region, the Middle East and Africa they have more than doubled.
While the trend is easing somewhat, it does not seem likely to reverse any time soon, given the substantial level of investment being channeled into new top-tier properties. Indeed, the CoStar data may undervalue the phenomenon, as the figures are limited to properties in the US company's database, which does not include small ultra-luxury properties such as lodges in the African savannah, boutique hotels or European country resorts.
Massimiliano Sarti
Journalist
