The Fastest-Growing Corner of the Hotel Market Now Starts at $1,500 a Night

Bookings at hotels charging $1,500 or more per night are up 37% year over year across Virtuoso's network, growing at more than twice the rate of lower-priced properties, according to figures the luxury travel consortium presented at its annual Travel Week in Las Vegas.

The numbers carry weight because of the sample. Virtuoso books roughly $35 billion a year through more than 20,000 advisors in 58 countries, with preferred relationships at some 2,800 hotels, cruise lines and tour operators. The network is pacing toward a 21% increase in sales this year, and hotels are its fastest-growing partner category at 25%.

Rates have climbed alongside volume. Luxury international hotels in the network now average $1,653 a night and luxury U.S. hotels $1,445, against $985 and $790 in 2019.

Autumn stopped being cheap

Fall bookings are up 59% and sales up 69%, with September leading on sales at 77%. European hotel sales rose 39% through June, and fall bookings to Europe climbed 49% even as rates rose more than 7%, which means travelers are buying the season on its merits rather than its discounts.

Rate growth was steepest on the French Riviera, up 179%, followed by the Greek Islands at more than 130% and Puglia at 78%. Properties like The Maybourne Riviera and Borgo Egnazia now sell shoulder-season nights that once needed discounting.

Two other findings matter for hotel owners. Wellness-segmented hotels are outrunning the rest of the portfolio, with bookings up 28%, sales up 44% and average daily rates up 23%. And 45% of advisors report more requests for what Virtuoso calls ultraluxe formats: hotels within hotels, private members' clubs with rooms. Knight Frank counts 713,626 people worth $30 million or more, up 29% since 2021, which is the demand base underneath all of it.