MAR•MAR•Hotel shares rose 25% on average in 2026 through November 10, while luxury groups fell 37%. Analysts expect hotel earnings per share to grow twice as fast as those of luxury-goods groups from 2025 to 2028.
Shares in Marriott International, Hilton Worldwide, Hyatt Hotels, Accor and InterContinental Hotels rose 25% on average between the end of 2025 and November 10, 2026. LVMH, Hermès International and Kering fell 37% on average as investors worried about a prolonged slump in demand for luxury goods, especially in China. Morgan Stanley analysts expect earnings per share at the five hotel groups to grow by an average of 20% annually from 2025 to 2028, twice the pace for luxury-goods groups.
Morgan Stanley estimates luxury hotels generate $200 billion in annual revenue; adding fine dining, cruises and other high-end experiences brings the market to $415 billion, slightly above the $408 billion spent on personal luxury goods. Luxury hotel revenue per available room in the US and Europe rose 8% this year, compared with 2% first-half sales growth at major listed luxury-goods companies. A June survey found 38% of occasional US luxury shoppers would spend an extra $5,000 on travel, more than chose jewelry or handbags.
Fashion groups have some hospitality exposure, including LVMH’s Cheval Blanc and Belmond, but its “other activities” category accounted for less than 1% of group sales last year. Building or buying hotels would require substantial capital, while licensing brands to hotel operators could risk diluting their exclusivity. Analysts expect LVMH, Hermès and Kering to generate $24 billion of combined free cash flow next year.
