Occupancy tells a different story: The 10 most expensive hotels in each market consistently trail their luxury peers. Two factors explain this: First, exclusivity is a core value proposition— crowded restaurants, packed pools or overbooked spas undermine that promise. Second, availability matters for high-net-worth guests who often book last minute. In this segment, lower occupancy is not a flaw— it’ s a feature.
Looking ahead, ultra-luxury demand appears resilient. High-net-worth travelers remain insulated from economic volatility, enabling operators to maintain pricing power. For these hotels, occupancy is secondary to delivering singular experiences in extraordinary settings. For their guests, access— not price— is the ultimate differentiator. Expect ultra-luxury properties to continue leveraging scarcity and exclusivity as their strongest competitive edge. n
“ Since 2020, ultra-luxury pricing has surged— driven partly by wealth gains and partly by a redefined perception of high-end travel.”
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.
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