Luxury Hotels Report- Central Asia

THE RISE OF LUXURY HOTELS: A GLOBAL PERSPECTIVE

In 2026, the global hotel market shows a clear divergence across segments, with luxury emerging as the primary growth driver. The luxury segment continues to record RevPAR growth, while the economy segment faces pressure, underscoring the resilience of affluent travelers despite broader economic uncertainty. As a result, luxury hotels are increasingly viewed as more attractive investment opportunities compared to midscale and budget assets.

Today’s luxury travelers expect more than premium accommodation. They seek holistic, curated experiences, from wellness and gastronomy to highly personalized service, making travel both a lifestyle choice and a status symbol. For operators, delivering distinctive and tailored experiences is essential to capturing high-end demand and sustaining long-term growth.

Across Central Asia, the luxury hospitality segment is gaining momentum, led by Almaty, Astana, and Tashkent, where international brands are introducing hotels that integrate wellness, gastronomy, and experiential travel. These markets have not yet fully realized their potential: sustained growth in tourist flows, expanding air connectivity, and rising domestic purchasing power continue to support further development across all hotel categories. As demand deepens and diversifies, the region presents strong opportunities for new branded hotel projects tailored to evolving guest expectations.

In parallel, emerging destinations such as Kyrgyzstan and Tajikistan offer significant long-term upside for luxury hospitality, underpinned by improving infrastructure, enhanced connectivity, and growing interest in nature-based, adventure, and cultural tourism.

STR CHAIN SCALE AND DEFINITION OF LUXURY

In hospitality consulting, “luxury” is not a marketing term but a defined classification based on system-wide performance data. This classification is guided by the Smith Travel Research (STR) Chain Scale, which segments the global hotel market into six tiers: Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale, and Economy. Brands are assigned to these tiers primarily based on their prior year system-wide Average Daily Rate (ADR), as well as the scope and quality of services and amenities offered.

The chain-scale classification serves as a core benchmarking reference within the hospitality industry. It informs brand positioning, shapes investor underwriting assumptions, and influences brand standards and operational strategy. Importantly, it also provides a structured framework for aligning development costs with brand requirements and revenue potential. Developers rely on this framework to assess and balance these factors when evaluating project feasibility and long-term performance.

Within this structure, the Luxury tier represents the top of the hierarchy. It is generally reserved for brands offering the most comprehensive service platforms, including high-end dining, full-service spa and wellness facilities, and a high degree of personalized guest service, such as 24-hour butler service.

Almaty, Kazakhstan – The New Frontier for Global Luxury Hospitality

Almaty is increasingly positioning itself as a credible destination for global luxury investment within Central Asia. As the country’s leading commercial and financial hub, the city serves as the primary gateway for high-net-worth international travelers. The premium hotel segment remains structurally undersupplied, with demand consistently outpacing available inventory, supporting sustainable growth and long-term brand development.

Rapid growth in demand

Kazakhstan’s hospitality sector continues to demonstrate strong momentum. In the first nine months of 2025, the country welcomed 15.7 million international visitors, representing approximately 37% year-on-year growth. Notably, this figure has already surpassed the total annual arrivals recorded in 2024 (15.3 million), proving the sustained acceleration in inbound tourism and the strengthening position of Kazakhstan as a regional travel hub.

Market imbalance: demand ahead of supply

Almaty is the most developed hotel market in Central Asia, yet room supply, particularly in the branded and luxury segments, remains constrained. The city offers approximately 2,567 chain-affiliated rooms, including only 659 luxury chain rooms, which remains insufficient relative to current and anticipated demand.

Occupancy at capacity

Branded hotels in Almaty achieved 69.5% average occupancy in 2024, the highest level on record. During peak periods, the market operates close to full capacity, limiting its ability to absorb incremental demand.

Premium Performance Indicators

In 9M 2025, ADR at Almaty’s internationally branded luxury and ultra-luxury five-star hotels ranged between USD 180 and 400, with occupancy levels remaining strong across the segment.

Inbound demand is becoming more diversified

In 2024, Almaty welcomed 2.3 million tourists, including approximately 686 thousand international visitors. In the first nine months of 2025, the city received nearly 1.87 million visitors, marking an 8% increase compared to the same period of 2024. China accounted for approximately 14% of arrivals, alongside growing inflows from India (17%), Turkey (5%), the United States (4%), South Korea (3%), the UAE (3%), the United Kingdom (2%), and Germany (2%). Average spend per foreign visitor was approximately USD 441.

Policy support is translating into results

Tourism has become a stated government priority. The Tourism Industry Development Program targets 1 million foreign visitors annually by 2030, supported by investment in destination infrastructure. The development of the Almaty mountain cluster, including Shymbulak Ski Resort, has positioned the city among the region’s leading year-round leisure destinations and strengthened its appeal to higher-end travelers.

Almaty’s hospitality market continues to operate below equilibrium, driven by a shortage of internationally competitive supply rather than demand constraints. Strong operating performance, reflected in high occupancy and improving rate dynamics, is being reinforced by a gradual shift toward greater institutional maturity, supporting the city’s relevance within the region’s luxury hospitality landscape.

ALMATY

Almaty remains the undisputed leader in Central Asian luxury hospitality, serving as Kazakhstan’s principal gateway for premium leisure and business travel. Its cultural and commercial significance, combined with its proximity to the Alatau Mountains, has supported the development of the region’s most mature luxury hotel market.

In 2024, Almaty welcomed 2.3 million tourists, including approximately 686 thousand international visitors. In the first nine months of 2025, the city received nearly 1.87 million visitors, marking an 8% increase compared to the same period of 2024.

Growth has been supported by improved air connectivity through Almaty International Airport, which served 11.4 million passengers in 2024, representing a 19.7% year-on-year increase.

The opening of Terminal 2 in June 2024 expanded the airport’s capacity to 14 million passengers, with longer-term expansion plans targeting 40–55 million passengers annually by 2050.

The strength of demand is clearly reflected in hotel operating performance across branded properties in the market. In 2024, occupancy across internationally branded hotels reached 69.5%, setting a strong base for the market. In 5M 2025, ADR across all branded hotels increased to USD 134 (+2% YoY). By 9M 2025, ADR at Almaty’s internationally branded luxury and ultra-luxury five-star hotels ranged between USD 180 and 400, with occupancy remaining strong in the upper segment.

The Ritz-Carlton Almaty

Opened in 2013, The Ritz-Carlton Almaty is positioned at the top end of the city’s luxury hotel market. The 145-room property occupies the upper floors of the Esentai Tower and forms part of the Esentai mixed-use complex, which includes luxury retail, Class A office space, and high-end residences.

Rixos Almaty

The Rixos Almaty is a unique combination of Turkish hospitality and Kazakh luxury. The 237-room property, in operation since 2009, functions as a full-service urban hotel with a strong emphasis on events, wellness, and destination dining.

InterContinental Almaty

InterContinental Almaty is a long-established 277-room luxury hotel that has maintained a strong market position, supported by its strategic location near the CBD and a reputation for consistent international service standards. The property originally opened in 1995 as the Ankara Hotel and was renovated and rebranded as InterContinental in 2006.

Pipeline

Vignette Collection

Scheduled to open in 2027, the 95-room Vignette Collection hotel will form part of the Hayat Melliora complex, an upscale residential development. A key feature of the project is its direct connectivity to the airport and major city attractions, including Kok-Tobe Park, a prominent leisure destination offering panoramic views of Almaty.

The St. Regis

The St. Regis Almaty is a planned luxury hotel development of approximately 200 rooms, located at the intersection of Seifullin Avenue and Temiryazev Street. The hotel will form part of a 40-storey mixed-use high-rise development, comprising luxury residential units, offices, serviced apartments, and retail space. The project is positioned as a landmark addition to Almaty’s luxury hospitality pipeline.

The investment climate in Almaty remains active and competitive. In 2024, total investment in the tourism sector reached KZT 110.9 billion, representing a 2.1% increase compared to 2023. This momentum continued into 2025, with investment totaling KZT 113.2 billion over the first nine months of the year.
Development activity remains strong, with six branded chain hotels currently under construction, collectively adding approximately 800 rooms to the city’s hospitality pipeline.

ASTANA

Astana offers a clear example of hospitality and residential integration in the region. Developments that combine high-end hotels with branded residential components allow projects to diversify revenue streams while maintaining a cohesive, service-oriented environment. This approach is reflected in projects such as Talan Towers, which integrates The Ritz-Carlton with luxury residences, as well as the St. Regis hotel and its associated residential offering.

Demand for this format is driven by ultra-high-net-worth individuals seeking five-star service within a private residential setting, with branded residences increasingly viewed as both lifestyle assets and long-term value-preservation vehicles.

As the country’s administrative and events-driven capital, Astana continues to build its tourism profile, albeit at a more measured pace than Almaty. In 2024, the city hosted approximately 350 thousand foreign visitors, representing a 22% year-on-year increase. In 9M 2025, Astana hosted a total of 1.2 million visitors, representing a 9% year-on-year increase.

Air connectivity continues to improve, with Astana International Airport handling 8.3 million passengers in 2024, up 11% year-on-year.

In 2024, Astana achieved an average daily rate of approximately USD 151 and occupancy of 61.0%, translating into a RevPAR of USD 92.1, based on aggregate results across branded hotels in the market.

The Ritz-Carlton Astana

Opened in 2017, The Ritz-Carlton Astana occupies the upper floors of the Talan Towers and comprises 157 guestrooms. The hotel forms part of a mixed-use development that includes Class A office space, luxury retail, and high-end residences, and is positioned as a premier business destination within the capital.

The St. Regis Astana

Opened in 2017, The St. Regis Astana is located within Central Park and comprises 120 guestrooms. The property is positioned as a full-service luxury hotel with a strong meetings and events offering. Its park-side setting and comprehensive amenity mix support a balanced demand profile across corporate events, social functions, and high-end leisure stays.

Rixos President Astana

Rixos President Astana is located in the city’s administrative and business district and has 184 guestrooms. The hotel operates as a full-service property with dining, banquet, and meeting facilities, supporting both corporate and social demand. Its central location and broad offering allow it to attract a mix of business and leisure guests.

TASHKENT

Tashkent, the capital of Uzbekistan, is currently the fastest-growing luxury hotel market in Central Asia. The country’s economic expansion, liberalizing reforms, and visa-free policies have positioned the city as a highly promising destination for international investment.

The growing influx of business visitors, both from development institutions and private companies, supports demand for premium hospitality, alongside leisure travelers.

In 2024, Uzbekistan welcomed 8 million foreign tourists, with Tashkent receiving 4 million. In 2025, Uzbekistan hosted 11.7 million foreign visitors, marking a 46% year-on-year increase.

Islam Karimov Tashkent International Airport handled 8.7 million passengers, up 24% year-on-year. Rapid passenger growth, nearly double 2019 volumes, has prompted a major airport relocation project, targeting a 2030 opening at a new site 17 km south of the city with Phase 1 capacity of 20 million passengers.
In 2024, Tashkent’s hotel market benefited from solid demand, achieving an average daily rate of approximately USD 144 and occupancy of 63.9%, resulting in a RevPAR of USD 92, based on combined performance across branded hotels in the city.

InterContinental

Opened in 2023, InterContinental Tashkent is the first internationally branded luxury hotel in the city. The 216-room property is located within the Trilliant Business Park, a mixed-use development near Amir Temur Square comprising office, convention, and retail components.

The hotel offers a full-service amenity platform, including wellness and destination dining, and is notable as the first LEED Gold–certified building in Uzbekistan, setting a new benchmark for luxury hospitality in the Tashkent market.

JW Marriott Hotel Tashkent

Opened in late 2025, JW Marriott Hotel Tashkent is the first luxury-branded property under the Marriott International umbrella in Uzbekistan.

The 287-room property is located within Tashkent City Mall, one of the capital’s major mixed‑use developments and home to the country’s largest retail and entertainment complex.

Facilities include multiple restaurants and bars, a spa, fitness center, indoor pools, and over 1,200 m² of meeting and event space, including a large ballroom.

Pipeline

The Ritz-Carlton

Scheduled to open in 2028, The Ritz-Carlton, Tashkent is a luxury hotel led by Azerbaijani developer PASHA Real Estate in collaboration with UK architecture firm Benoy.

The 140-room hotel will be part of a mixed-use complex combining the five-star property with luxury branded residences.

PASHA Real Estate brings experience from a similar project in Baku, where it delivered The Ritz-Carlton Baku.

The arrival of a brand like The Ritz-Carlton in Tashkent is a key indicator of the city’s transformation into an important hub for international business and tourism in Central Asia.

Radisson Collection

A Radisson Collection hotel is set to open in Tashkent in 2026 by Metropol Group LLC.

The hotel will occupy the central 22-story building of a four-building complex covering 130,000 m². It will feature 164 rooms, while the broader complex will include retail spaces, a cinema, offices, serviced apartments, and multi-level parking.

The development is located on Sayilgokh Street in central Tashkent, on the former site of the State Security Service building.

Tashkent is the most actively developing hotel market in the region. Between 2025 and 2029, the city is expected to see a significant increase in supply, with nearly 3,800 new chain hotel rooms planned across a variety of projects. In the luxury segment, notable additions include The Ritz-Carlton and Radisson Collection.

TAJIKISTAN

In 2025, Tajikistan welcomed 1.7 million tourists, making a 13% year-on-year increase, reflecting the country’s steadily strengthening position on the regional tourism map. In recent years, notable progress has been made in digital access, infrastructure upgrades, and hospitality services, significantly improving the overall visitor experience, while further enhancements in air connectivity, digital performance, and administrative processes are expected to unlock additional growth.

The capital’s hotel market features a select presence of upscale international chains alongside strong independent properties, yet international luxury brands remain absent, highlighting a clear opportunity for premium hospitality development.

Dushanbe’s tourism and luxury potential is closely tied to its role as a gateway to the Pamir Mountains, positioning the city within the emerging niche of “adventure luxury.”

KYRGYZSTAN

Kyrgyzstan captivates travelers with its pristine natural landscapes and unspoiled beauty. In 2024, the country welcomed 3.7 million tourists, marking a 28% increase over 2023.

Issyk-Kul remains the crown jewel of summer tourism, attracting visitors with its sparkling lake and vibrant resort towns, while Karakol takes center stage in winter as one of Central Asia’s premier ski destinations.

This momentum is supported by steadily improving air connectivity. In 2024, total passenger traffic across Kyrgyzstan reached 5.8 million, setting a new all-time record.

The ongoing modernization of Manas International Airport, together with the reconstruction and development of regional airports, including Karakol International, is expected to further strengthen accessibility and support the continued growth of the tourism sector.

The hospitality landscape features a selective presence of global midscale and upscale brands, complemented by high-quality independent hotels, while international luxury operators remain notably absent, highlighting an opportunity for premium brand entry.