The market size of the hotel and resort sector worldwide peaked at 1.5 trillion U.S. dollars in 2023. This showed five percent growth over the previous year's figure of 1.43 trillion U.S. dollars. What are the leading hotel brands globally? In 2023, among hotel brands with the highest brand values globally were industry giants like Hilton, Hyatt, and Hampton Inn. Hilton was reported to have a brand value exceeding 11 billion U.S. dollars. However, while Hilton led brand value, Wyndham hotels and resorts claimed the top spot for the hotel company with the largest number of properties worldwide, boasting over nine thousand hotels globally, while Hilton ranked fourth. Hotel booking behavior of global travelers In 2023, hotel booking growth worldwide peaked in January and February, surpassing 130 percent - there was also a notable increase in hotel booking growth during the summer months of June and August. As of 2024, Vietnam and China stood out as the countries with the highest share of consumers booking hotels or private accommodation. Meanwhile, countries with the lowest share of hotel and private accommodation bookings were Hungary and Pakistan.

Hospitality can be defined somewhat broadly as an industry that focuses on providing consumers with a means to participate in leisure activities, be that staying in a hotel or dining in a restaurant. It encompasses many industries, the largest of which are accommodation and food and drink services. In 2023, the global hospitality market reached over 4.7 trillion U.S. dollars and was forecast to grow to around 5.5 trillion U.S. dollars in 2024.

The Report Covers US Hospitality Industry Trends, Overview and the Market is Segmented by Type (Chain Hotels and Independent Hotels) and Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, and Luxury Hotels)

As per Cognitive Market Research's latest published report, the Global Hotel market size was $784.82 Billion in 2023 and it is forecasted to reach $1,126.04 Billion by 2030. Hotel Industry's Compound Annual Growth Rate will be 5.29% from 2023 to 2030. What are the key driving factors for the Hotel market?

The Rising Investment in the Global Hotel Industry is Favoring the Market Growth

The year 2022 was a year that started with the reopening of many international borders and huge amounts of government economic stimulus. However, the outbreak of Ukraine-Russia war was a growing geopolitical tension. Despite all these challenges, the global hotel and lodging industry continues to show resilience as RevPAR (Revenue Per Available Room) towards complete recovery). For instance, according to the data of the Global Hotel Investment Outlook 2023, at the year end of 2022, the proportion of RevPAR recovered relative to that of 2019 by region ranged from 69% to 108%. Additionally, in the period of seven years before COVID-19, outbound Chinese capital for the global hotel investment accounted for USD 3.4 billion every year. From the year 2020 to 2022, the outbound Chinese hotel investment has been about USD 400.0 million.

The transaction activities in the hotel industry had been witnessed to be increased than before. For instance, according to the research of Jones Lang LaSalle IP, Inc. (JLL) and Global Hotel Investment Outlook 2023, two of the three global regions (the Americas and the APAC) observed an increased hotel investment volume in 2022. Moreover, private equities continue to be the largest acquirers of hotel assets globally. In the year 2022, there had been witnessed a significant increase in new investors entering the hotel industry. In fact, a 16% of the year’s global investment volume in hotel industry was generated by the first-time hotel buyers.

In the year 2022, there was a decline in investment volume, and same can be expected in 2023, owing to large portfolios might be challenging to finance. There can likely be a bifurcation in hotel acquisitions as luxury hotels will be continuing to sell for high values. In addition, in 2022, foreign investors deployed capital not only towards individual hotel assets but also into large-scale platforms, especially in the luxury space. For instance, in the third quarter of 2022, Saudi Arabia’s Public Investment Fund (PIF) entered into partnership with London-based investment firm Cian International to invest about USD 900 million into the Aman Group, valuing the ultra-luxury platform over USD 3 billion.

The Accelerating Global Travel and Tourism Fueled the Demand for Hotels, Drives the Market Growth

The Availability of Alternative Accommodation Places such as Short Term Rental Homes, Hostels, and Others May Hamper the Market Growth(Access Detailed Analysis in the Full Report Version)


The Rising Popularity of Ultra-Luxury Segment Generates an Opportunity for Expansion of the Market.(Access Detailed Analysis in the Full Report Version)

What is a Hotel?

A hotel is the most common type of accommodation, which can be defined as an establishment that offers overnight accommodation, meals, and various other services. Hotels are mainly aimed/targeted at tourists or travelers, although the local residential can also use hotels. Hotels is a segment categorized under the hospitality and tourism sector. Different hotels possess a wide range of accommodations ranging from budget motels to luxury resorts. Hotel industry consists of lodging places, event planning, theme parks, restaurants, and others, and it includes various activities such as facility maintenance & direct operations including porters, servers, housekeepers, kitchen keepers, bartenders, and many more. The global hotel industry is exhibiting a positive growth after COVID-19. For instance, according to the data of Global Hotel Investment Outlook, 2023, the hotel occupancy has reached 89% recovery as compared to that of 2019, thereby, proving its resilience.

This statistic shows the global hotel industry market size from 2014 to 2018. The retail value of the global hotel industry was 600.49 billion U.S. dollars in 2018.

Global hotel industry - additional information

The global hotel industry comes under the umbrella of the travel and tourism industry, an industry which contributed 8.81 trillion U.S. dollars to the global economy in 2018. Travelers who are on the road for more than a day need a place to sleep and rest - there are various types of lodging across the world to accommodate for this.

The global occupancy rate (the share of total rooms available which are occupied or rented at a given time) of hotels in most regions increased over the previous five years. Europe had the highest occupancy rate in 2018 at 72.4 percent, closely followed by the Asia Pacific region with 70.6 percent. In the same year, the Middle East and Africa were the most expensive region for hotels with an average daily rate of 140.97 U.S. dollars. The cheapest region for the last five years was Asia Pacific.

The Report Covers Global Luxury Hotel Market Share and is Segmented by Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts, and Other Hotels) and by Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The Hospitality Market in India is Experiencing Growth Due To the Country's Rich Culture and Diversity, Attracting Global Guests. The Service Sector, Known for Spiritual Tourism, Has Seen A Rise in Domestic Travel, Driven by A Growing Middle Class and Increased Disposable Income. Innovations in Accommodation Like Airbnb and Oyo Rooms Offer Cost-Effective Stays, While the Government Develops Ports As Cruise Tourism Hubs, Providing Hotel Services, Retail, and Restaurants. The Hotel Industry is Expanding With New Projects From International Chains, Driven by Increased Travel and Government Efforts To Boost Tourism.

Global hotels market size was USD 1,376.40 billion in 2023 and is expected to increase to USD 2,993.90 billion by 2032 at a CAGR of 9.14%.

[226+ Pages Report] The global Hospitality market size is expected to grow from USD 3953 billion in 2021 to USD 6716.3 billion by 2028, at a CAGR of 10.24% from 2022-2028

The Extended Stay Hotel Market Share size and share are expected to exceed USD 146.04 billion by 2032, with a compound annual growth rate (CAGR) of 11.6% during the forecast period.

According to Cognitive Market Research, the global Budget Hotels market size will be USD 284582.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 113833.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 85374.78 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 65454.00 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 14229.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 5691.65 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
The Business Travelers held the highest Budget Hotels market revenue share in 2024.

Market Dynamics of Budget Hotels Market

Key Drivers for Budget Hotels Market

Growing Urbanization to Increase the Demand Globally

In many areas, there is a rapid growth in travel inside and between cities as a result of urbanization. Urban budget hotels draw guests searching for reasonably priced overnight options in handy locations. Secondary sources estimate that about one-third of India's population resided in cities in 2023. People have moved from rural areas to the metropolis in search of employment and a means of subsistence, as seen by the trend, which indicates an increase in urbanization of more than 4% over the past ten years. Thus, the increasing urbanization is expected to propel the market growth during the forecast period.

Growing Investment to Propel Market Growth

The increasing investment in the industry is expected to drive the market over the projected period. For instance, in June 2023, in conjunction with the 2023 NYU International Hospitality Industry Investment Conference, Marriott International, Inc. declared its intention to extend its presence in the inexpensive midscale accommodation sector, building on its recent foray into the market through City Express by Marriott in Latin America. Marriott is announced intentions to establish a new brand, which is now known as Project MidX Studios and has not yet been given a name. This move is in line with the company's strategy to provide visitors with locally relevant lodging solutions for every purpose of their stay. The goal of the budget-friendly midscale extended stay brand is to provide guests looking for longer-term lodging in the United States and Canada with competitively priced modern comfort.

Restraint Factor for the Budget Hotels Market

Intense Competition and Changing Consumer Preference to Limit the Sales

There are many competitors in the highly competitive budget hotel market that provide identical services at similar price points. Individual operators' profit margins may be lowered by price wars resulting from this rivalry. Furthermore, because budget hotels concentrate on offering simple, uncomplicated services, it can be difficult to satisfy the demands of contemporary tourists who are looking for distinctive and customized experiences. Some guests may decide to book alternate lodging options like boutique hotels, vacation rentals, or Airbnb as a result of this change in tastes.

Impact of Covid-19 on the Budget Hotels Market

The COVID-19 epidemic has significantly impacted the market for low-cost hotels, affecting all facets of its demand and operations. Lockdowns, travel restrictions, and a generalized fear of getting the virus caused occupancy rates to drop precipitously. Long stretches of minimal or no occupancy negatively impacted the revenue of many low-cost hotels. Furthermore, low-cost hotels suffered significant revenue losses as a result of the sharp decline in tourists. Many hotels faced financial pressure and, in some cases, irreversible closures as a result of their inability to cover operating costs due to a decline in passenger volume. Introduction of the Budget Hotels Market

Budget hotels, also known as value hotels or economy h...

The Global Hotel Property Management Software Market, based on five year historic analysis, is valued at USD 4.3 billion. It is driven by the increasing adoption of cloud-based solutions and the growing demand for automation in hotel operations. Get the more industry growth, segmentation, key players and revenue statistics.

The report covers Asia-Pacific Luxury Hotel Companies and it is Segmented by Service Type (Business Hotel, Airport Hotel, Suite Hotel, Resort, and Other Service Hotels) and by Geography (China, India, Japan, Australia, Thailand, Vietnam, Rest of Asia-Pacific). The market size and forecasts for the Asia-Pacific Luxury Hotel Market are provided in terms of value (USD billion) for all the above segments.

The China Tourism and Hotel Industry Report is Segmented by Type Into Inbound Tourism and Outbound Tourism and by Product Into Chain Hotels and Independent Hotels. The Report Offers Market Size and Forecasts for China's Tourism and Hotel Industry in Value (USD) for all the Above Segments.

The Hospitality Market in the UK is Dynamic and Competitive, With A Mix of Domestic and International Brands in the Hotel and Restaurant Sectors. Despite Brexit Uncertainties, The Tourism Sector Saw Increased Investments in 2021, Particularly in London, Due To Rising Travel and Demand for New Accommodation. This Growth is Attracting Investors To Service Apartments, Shared Spaces, and Over 88 New Hotel Projects. Major Players in the Leisure and Entertainment Market Include Whitbread Group, Intercontinental Hotels Group, Travelodge, Accor SA, and Marriott International, Inc.

The European Luxury Hotel Market Report is Segmented by Service Type (business Hotels, Airport Hotels, Holiday Hotels, And Resorts and Spas) and Geography (Italy, Germany, Spain, France, Switzerland, The United Kingdom, And the Rest of Europe). The Report Offers Market Size and Forecasts for the European Luxury Hotel Market in Value (USD) for all the Above Segments.

United States Hospitality Market size was valued at USD 223.93 Billion in 2024 and is projected to reach USD 250.45 Billion by 2032, growing at a CAGR of 4.87% from 2025 to 2032.

United States Hospitality Market Dynamics

The key market dynamics that are shaping the United States hospitality market include:

Key Market Drivers

Growing Demand for Unique and Personalized Experiences: There is a rising demand for tailored and personalized services in the hospitality industry. Travelers increasingly seek unique experiences that cater to their individual preferences, driving the need for custom-made packages, bespoke services, and immersive local experiences. According to the American Hotel & Lodging Association, 70% of consumers consider personalization an essential factor when choosing accommodation and services.

Rise in Domestic and International Travel: With the easing of pandemic-related restrictions, there has been a sharp increase in both domestic and international travel.

The global casino hotel industry had a market worth US$ 191 billion in 2022, and it is anticipated that it will reach a market value of US$ 321.4 billion by 2033, growing at a CAGR of 4.8%. The market for tourism is expanding, which may be linked to rising traveler interest in these casino hotels.

Report Scope

The global micro hotel market size is estimated to be around USD 94.6 billion in 2024 and is anticipated to reach a value of USD 164.8 billion by 2034. Deals are projected to report a CAGR of 5.7% over the forecast period.

Country-wise Insights

Category-wise Insights

Explore the Hospitality Market trends! Covers key players, growth rate 6.1% CAGR, market size $7239.02 Billion, and forecasts to 2034. Get insights now!