$200 billion luxury hotel market leaves luxury goods behind, Morgan Stanley says
HLT•Luxury hotel revenue has reached about $200 billion, while broader luxury hospitality revenue totals about $415 billion, slightly exceeding Morgan Stanley’s $408 billion estimate for luxury goods. The brokerage favors Hilton and Accor as ways to invest in the luxury hospitality trend.
1. Hospitality market expands
Luxury hospitality has overtaken luxury goods as a market opportunity, Morgan Stanley analysts said. Annual luxury hotel revenue is about $200 billion, and the broader category reaches about $415 billion when villas, branded residences, fine dining, private aviation, yachts and cruises are included, compared with an estimated $408 billion for luxury goods.
2. Operators favored
Morgan Stanley said luxury hotel demand growth is partly structural, supported by rising global wealth and favorable demographics, and is less exposed to China than luxury goods companies. U.S. and European luxury hotel revenue per available room rose about 8% year-to-date in 2026, while revenue growth at major listed luxury goods companies was about 2% in the first half. Hilton leads on luxury and lifestyle growth potential, the brokerage said, naming Hilton and Accor as its preferred ways to play the trend.
