Morocco’s Luxury Hotels Soar: Occupancy and Profits Surge Despite Price Hikes

This study of the performance indicators of a sample of 128 classified hotels, including 35 high-end, 58 mid-range and 35 economy-type hotels, representing a total of 23,194 rooms, over the first eight months of 2025, shows that the luxury segment is the most performing in terms of growth in occupancy rate and profitability. As of the end of last August, the hotels studied achieved an average occupancy rate of 69%, an increase of 1% compared to the same period the previous year. High-end hotels recorded the strongest growth during this period, rising from 58% to 61% occupancy rate. However, the highest occupancy rate concerns the mid-range segment with 66% (+1%), and the economy segment which stagnated at 73%, according to Médias24.

Over the first eight months of 2025, the average occupancy rate of 61% increased by 2% compared to the same period in 2024, but remains lower than that of August (69%). While the mid-range segment stagnated with an occupancy rate of 63%, the economy segment climbed by 4% (59%), and the luxury segment by 7% (55%). This increase in occupancy was observed, despite a 21% increase in the average room rate, which was $158 in August 2024 compared to $191 in August 2025. In August, there was an explosion in the room rates of the luxury segment with an inflation of 26%, while the mid-range increased by 11% and the economy by 17%. From January to August 2025, room rates increased by 19% with an average increase of 15% for the entry-level segment, 8% for the mid-range and 4% for the luxury segment.

This increase in prices, which has affected all classified accommodation categories, has not affected the profitability of the hotels analyzed, which recorded a 21% increase in the average revenue per available room, reaching $131 in August 2025 compared to $108 a year earlier. Revenues generated by the luxury segment experienced the strongest growth (31%), followed by the mid-range (16%) and the economy (11%). The increase in occupancy rate and room rates during the period allowed hotel profitability to record a 19% growth, including 18% for the high-end, 16% for the mid-range and 15% for the economy. Figures that reinforce the Moroccan tourism industry’s desire to prioritize high-end tourism in the future.