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The world’s priciest hotels set record rates in 2025, even as the broader luxury sector showed signs of slowing. Affluent travelers are happily paying top dollar for exclusive wellness and lifestyle experiences, from hyperbaric oxygen therapy to immersive sound baths.

Data from CoStar shows that revenue per available room (RevPAR) at ultra-luxury hotels climbed 10.6% last year—more than three times the average growth across the hotel industry. The average nightly rate for an ultra-luxury room hit a record $1,245, up over 8% from 2024, while occupancy rose 2.3%. The figures suggest that wealthy guests are largely unfazed by high prices, unlike mid-tier and economy travelers, reports the Financial Times.

Experts attribute this resilience to the growing fortunes of ultra-rich travelers, boosted by rising stock markets, who are willing to pay a premium for promised wellness and lifestyle perks.

"Hotels simply couldn’t charge these rates before," says Paul Charles, CEO of consulting firm PC Agency. "Now, affluent clients view inflation and high prices as a given and are willing to pay for truly unique experiences."

The revenue surge in the ultra-luxury segment stands in stark contrast to the broader hotel market and the luxury goods sector. Bain & Company estimates that sales of luxury items like fashion and jewelry fell 2% to €358 billion in 2025.

Many hotels are strategically targeting high-paying guests by offering fewer but larger, more expensive suites. Singapore’s Marina Bay Sands, for instance, reduced its room count to make space for bigger, premium apartments.

"Focusing on higher rates allows us to provide better care and attract a more discerning audience," says Silvio Ursini, Executive Vice President of Bvlgari Hotels & Resorts.

New Bvlgari properties and similar brands are expanding their wellness offerings, highlighting their added value. Hyperbaric oxygen chambers, dry float pools, and vibrational sound beds are among the experiences on offer. At Rocco Forte Hotels’ recently opened Carlton Milan, standard rooms start around €1,400 per night, while the presidential suite can reach €17,500 during peak periods.

"Today, an ultra-luxury hotel isn’t just a place to sleep and eat. It’s a space for restoration, health, and renewal," notes Charles.

Analysts emphasize that wealthy travelers see trips as an investment in quality of life, not just leisure. Younger billionaires in particular view travel as a way to enhance health and longevity.

However, experts warn that at these price points, there’s no tolerance for service missteps. "At this level, any deviation from perfect service is unacceptable," notes Barclays analyst Brandt Montour.

While the ultra-luxury segment continues to grow and strengthen its position, more accessible hotels and luxury goods brands face declining demand, often needing to offer discounts to stimulate sales.

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