surprisingly , hoteliers in Italy and France were able to monetize the strong desire of American tourists to leave the U . S . in 2023 and 2024 , buoyed by the strong U . S . dollar . Switzerland , the United Kingdom and Spain have always had a strong consumer base of luxury leisure travelers , especially from the Middle East , and , over the last few years , increased their luxury hotel counts .
In the U . S ., the number of hotels charging $ 1,000 ADR has almost quadrupled over the last four years . In 2019 , only 22 hotels could command such high prices , but by 2024 , this number had increased to 80 .
As the strong growth in the number of high-rated properties shows , ultra-luxury leisure travelers are eager to spend on lavish hotels and the accompanying bespoke experiences . Looking ahead , continued growth in hotels charging these high ADRs is likely as the growth will be fueled by two trends . For one , hotels will continue to monetize the demand for their high-end offerings . In addition , hotel developers will continue building properties to target the high-end income level , and the number of properties reporting an ADR of over $ 1,000 will likely steadily increase . n
JAN D . FREITAG is the national director , hospitality analytics , for the CoStar Group . A sought-after public speaker , Freitag comments on the trends that shape the U . S . hotel industry and is frequently quoted in trade publications and the general news media . He is a trusted source of timely insights for investors , owners and operators . He holds a bachelor ’ s degree , with distinction , from the School of Hotel Administration , Cornell University , and received his Executive MBA , with honors , from Vanderbilt University .