PERSPECTIVE
Accelerating global wealth drives luxury hotel performance and liquidity
Contributed by ZACH DEMUTH , GLOBAL HEAD OF HOTELS RESEARCH , JLL HOTELS & HOSPITALITY GROUP
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espite widespread economic volatility over the past three years , global wealth continues to accelerate . Since 2019 , the number of highnet-worth individuals ( HNWIs ), defined as those with a net worth of at least $ 1 million , has grown 10.7 %, reaching 21.7 million individuals globally at the end of 2022 . While HNWIs represent less than 0.3 % of the world ’ s population , they contribute nearly 70 % of global spend on luxury travel . As such , it is no surprise that luxury hotel demand has skyrocketed , with RevPAR for luxury hotels generally outperforming all other classes and exceeding 2019 levels in many markets . Investors have taken notice , with luxury hotels representing 24 % of single-asset global hotel liquidity through August 2023 , the highest portion since 2015 .
The increased investor appetite for
56 hotelsmag . com Nov / Dec 2023