The average American is feeling the squeeze, but the upper tier of travelers is spending more freely than ever on luxury accommodations. Despite falling occupancy across major hotel brands, demand for premium rooms remains strong, with rates hitting historic highs. CoStar attributes this trend to post pandemic wealth growth that is influencing how affluent travelers choose to vacation.
Key Points
• Luxury hotel room rates in the United States have climbed to an average of 394 dollars.
• Bookings for luxury properties rose 2.5 percent year to date through September.
• Daily rates in top cities such as New York, Paris, London and Rome have surged dramatically since 2019.
• Ultra luxury hotels maintain lower occupancy intentionally to enhance privacy, exclusivity and personalized service.
With wealthier travelers prioritizing access, privacy and elevated hospitality, the luxury sector is positioned for continued strength. Hotels that cater to this niche are set to benefit from travelers willing to pay more for space and exclusivity.
By: Ted Thornhill | US Travel Editor | Wednesday 12 November 2025 09:19 EST
