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.

Introduction

Hotel Industry Statistics: Hotels were among the first businesses to be affected when social distancing became the new normal. But now that things are getting back to normal, more people are travelling than ever. The hotel and resort industry is expected to reach a value of $1.27 trillion by 2031. Although this is lower than the $1.52 trillion the industry was worth just 4 years ago, it's still a positive sign.

The main purpose of hospitality is to offer customers enjoyable experiences. Whether it's through small hotels, event planning, large hotel chains, restaurants, airlines, or travel agencies, the industry is important to both national and global economies. Let’s see what the Hotel Industry Statistics state in 2025.

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 of November 2024, the market size of the casino hotel industry in the United States totaled 79 billion U.S. dollars. Meanwhile, there were around 331,000 individuals employed in the sector.

This statistic shows the revenue of the United States hotel industry from 2001 to 2018. In 2018, the revenue of the hotel industry in the U.S. reached 218 billion U.S. dollars.

U.S. hotel industry key performance indicators

To measure the performance of the hotel industry sector three basic benchmark figures are commonly used:

• Occupancy rate

• Average daily rate (ADR)

• Revenue per available room (RevPAR)

The occupancy rate denotes the percentage of hotel rooms that are rented out at a given time of all the hotel rooms that are available. In 2018, the average occupancy rate of the U.S. hospitality industry was at 66.2 percent, this was the highest seen since 2001.

The average daily rate (ADR) shows the average rate at which hotel rooms were paid. It is calculated by dividing total rooms revenue by the number of rooms that were occupied. In 2018, the average ADR of hotel rooms in the U.S. reached 129.83 U.S. dollars. In the Americas region, the average daily rate was relatively stable throughout the year.

Revenue per available room (RevPAR) is a measure of utilization in the hotel industry and can be calculated by multiplying the average daily rate of a property (market) by its occupancy rate. The average RevPAR of hotels in the United States was 85.96 U.S. dollars in 2018.

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 United Kingdom Hospitality Industry report segments the industry into By Type (Chain Hotels, Independent Hotels), By Segment (Luxury Hotels, Mid and Upper-Mid-Scale Hotels, Budget and Economy Hotels, Service Apartments). This report presents five years of historical data with forecasts for the next five years.

Market Size statistics on the Hotels & Motels industry in United States

United States Hospitality Industry Market size was valued at USD 15.31 Billion in 2024 and is projected to reach USD 23.68 Billion by 2031, growing at a CAGR of 5.6% from 2024 to 2031.United States Hospitality Market DriversThe market drivers for the United States Hospitality Market can be influenced by various factors. These may include:Economic conditions: The hotel industry is strongly impacted by the nation's overall economic health, which includes variables like GDP growth, employment rates, and consumer spending. People travel more and spend more on hotel services when the economy is doing well.Travel trends: The demand for hospitality services in particular locations may be influenced by shifting travel patterns, such as an increase in domestic or international travel, the rise of bleisure travel (combining business and leisure vacations), and the popularity of particular places.Technological developments: To improve customer experiences, increase operational efficiency, and customize services, the hotel sector is progressively implementing technology. Keyless entrance, personalized recommendations, and smartphone check-in are examples of trends that can affect customer preferences.Regulatory environment: The hospitality sector may be impacted by government laws and regulations, such as those pertaining to taxes, labor laws, and visa requirements. The competitiveness of the market and operating expenses might be impacted by regulatory changes.Consumer preferences: Shifts in the hospitality business can be driven by changes in consumer preferences, which can affect the kinds of services and amenities that are in demand. Examples of these shifts include a growing interest in wellness tourism, sustainable travel, or unique experiences.Rivalry: Pricing strategies and client loyalty may be impacted by the degree of rivalry in the hospitality industry, which includes the existence of well-known brands, fresh competitors, and alternative accommodation options like Airbnb.Global crises and events: The hospitality industry may be significantly impacted by events like health pandemics, natural disasters, geopolitical unrest, or economic downturns, which can alter demand and travel patterns.

Hotel Market Outlook

As of 2023, the global hotel market size stands at an impressive valuation, projected to reach approximately USD 800 billion, with a compound annual growth rate (CAGR) of 6.5% from 2024 to 2032. This notable expansion is driven by various factors, including the rapidly increasing global travel and tourism industry, which fuels demand for diverse accommodation options. The market's growth is primarily fueled by rising disposable incomes, urbanization, and the preference for personalized and experiential stays. The forecasted market size for 2032 is expected to reach around USD 1.36 trillion, underlining the robust growth trajectory of the hotel industry worldwide.

One of the key growth drivers for the hotel market is the surge in international tourism and travel activities, which has been steadily increasing over the past few years. An interconnected world facilitated by digitalization and competitive airline pricing has made travel more accessible than ever, leading to a proliferation of travelers seeking varied accommodations. This surge in travel has heightened demand across all hotel segments, from luxury to budget, as travelers look for options that match their unique preferences and budgets. The hotel industry is also benefitting from government initiatives in many countries aimed at promoting tourism, further fueling market expansion.

Additionally, technological advancements are significantly contributing to the growth of the hotel market. The adoption of technology in the form of smart rooms, digital concierge services, and online booking platforms has revolutionized the hospitality industry. These innovations have enhanced customer experience and streamlined operations, making hotels more appealing to tech-savvy travelers. Moreover, the integration of artificial intelligence and big data analytics is allowing hotels to offer personalized services by predicting customer preferences and behaviors, thereby increasing customer satisfaction and loyalty.

The rise in business travel is another critical factor driving the hotel market's growth. The expansion of global business operations and the increase in international conferences and meetings have necessitated travel, thereby increasing the demand for accommodations tailored to business travelers. Hotels are increasingly catering to this segment by offering specialized services such as business centers, meeting rooms, and high-speed internet connectivity. Additionally, the trend of "bleisure" travel—where professionals combine business trips with leisure activities—has also amplified the need for hotels to offer comprehensive services that cater to both work and relaxation.

High End Chain Hotels are playing a pivotal role in shaping the landscape of the hospitality industry. These establishments are renowned for their luxurious offerings, catering to the affluent traveler who seeks not only comfort but also exclusivity and personalized service. High End Chain Hotels often feature world-class amenities such as fine dining restaurants, opulent spas, and state-of-the-art fitness centers, setting the benchmark for luxury in the hotel sector. Their strategic locations in prime urban and resort destinations make them a preferred choice for both leisure and business travelers who value prestige and exceptional service. The growth of this segment is further fueled by the increasing number of high-net-worth individuals and the global trend towards experiential travel, where guests seek unique and memorable experiences during their stay.

Regionally, the Asia-Pacific region is poised for significant growth due to its booming tourism sector and rapidly expanding middle class with rising disposable incomes. Countries like China, India, and Southeast Asian nations are experiencing substantial increases in domestic and international tourism, driving the demand for hotel accommodations. North America and Europe continue to hold significant market shares, driven by their established tourism infrastructure and a steady influx of both leisure and business travelers. Meanwhile, the Middle East and Africa are also witnessing growth, propelled by major international events and increased investment in tourism infrastructure.

Type Analysis

The hotel market is diversified across various types, namely luxury, upscale, midscale, economy, and budget hotels. Each category caters to different segments of travelers based on their preferences, spending capabilities, and expec

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.

Hotel Digital Market Outlook

The global hotel digital market size was estimated to reach USD 12.5 billion in 2023, with a projected compound annual growth rate (CAGR) of 9.8%, poised to escalate this figure to approximately USD 27.1 billion by 2032. This impressive growth trajectory is driven by the increasing adoption of digital solutions in the hospitality industry, aimed at enhancing operational efficiency and guest experience. The convergence of technological advancements such as artificial intelligence, IoT, and big data analytics with traditional hospitality services is significantly reshaping the landscape, offering a plethora of opportunities for market participants to harness these innovations for competitive advantage.

One of the primary growth factors within the hotel digital market is the rising demand for personalized guest experiences. As travelers increasingly seek unique and tailored experiences, hotels are leveraging digital tools to offer personalized services and recommendations. Digital platforms enable hotels to gather and analyze guest data, preferences, and feedback, which in turn facilitates the customization of services, amenities, and communication. This personalized approach not only enhances guest satisfaction and loyalty but also boosts revenue generation by driving repeat business and positive word-of-mouth referrals. Moreover, the integration of AI-driven chatbots and virtual assistants has become a staple in modern hotels, offering seamless and instant guest interactions while reducing operational costs.

Another crucial driver of market growth is the need for efficient booking and revenue management systems. As the hotel industry becomes increasingly competitive, the ability to optimize pricing strategies and manage bookings effectively is paramount. Advanced digital platforms that utilize machine learning algorithms can analyze vast datasets to predict demand fluctuations, optimize pricing, and maximize occupancy rates. These systems allow hotels to adjust their strategies in real-time, ensuring that they capture the optimal market share at any given time. Additionally, digital marketing and advertising tools have become indispensable in reaching and engaging potential guests, providing hotels with innovative ways to target and convert audiences through social media, search engines, and online travel platforms.

The proliferation of cloud-based solutions is another significant factor contributing to the market's expansion. Cloud technology offers hotels the flexibility to scale their operations, reduce IT infrastructure costs, and enhance data security. With cloud deployment, hotels can streamline their operations, improve data accessibility, and facilitate collaboration across different departments and locations. This not only improves operational efficiency but also supports the adoption of emerging technologies like IoT and big data analytics. As more hotels transition from on-premises systems to cloud-based solutions, the demand for digital services and software in the hospitality sector continues to grow.

Regionally, the North American market holds a significant share due to its early adoption of digital technologies and a robust infrastructure. However, the Asia Pacific region is anticipated to exhibit the highest growth rate over the forecast period, driven by the burgeoning hospitality industry and increasing investments in technology. The region's rapid economic growth, coupled with a rising middle class and increasing tourism, creates a fertile ground for the adoption of hotel digital solutions. Meanwhile, Europe remains a key market, fueled by a strong tourism industry and a focus on sustainability and innovation in hospitality practices.

In the realm of hotel security, the evolution of the Hotel Lock system has become a pivotal aspect of the digital transformation journey. Modern hotel locks are no longer just about securing rooms; they are integral to enhancing the guest experience through seamless access and personalized service. These advanced systems often integrate with mobile apps, allowing guests to unlock their rooms using their smartphones, thereby eliminating the need for traditional key cards. This not only enhances convenience but also aligns with the growing demand for contactless solutions in the hospitality industry. Furthermore, hotel locks equipped with IoT capabilities can provide real-time data on room occupancy and security status, enabling hotel staff to respond promptly to any issues. As security concerns continue to rise, the adoption of sophisticated hotel

Number of Properties data was reported at 54,200.000 Unit in 2015. This records an increase from the previous number of 53,432.000 Unit for 2014. Number of Properties data is updated yearly, averaging 47,830.000 Unit from Dec 1977 (Median) to 2015, with 34 observations. The data reached an all-time high of 56,470.000 Unit in 1982 and a record low of 41,393.000 Unit in 2001. Number of Properties data remains active status in CEIC and is reported by American Hotel & Lodging Association. The data is categorized under Global Database’s United States – Table US.Q005: Lodging Industry Statistics. Includes all properties with 15 or more hotel rooms.

Global Hospitality market size is expected to reach $7239.02 billion by 2029 at 6.1%, segmented as by type, non-residential accommodation services, food and beverage services

Hotel Revenue Management System Market Outlook

The global hotel revenue management system market size is projected to experience significant growth over the years, with estimations indicating a climb from USD 2.4 billion in 2023 to approximately USD 5.6 billion by 2032, reflecting a compound annual growth rate (CAGR) of 9.8%. This remarkable growth can be attributed to several factors, including the increasing adoption of technology-driven solutions in the hospitality industry, a growing emphasis on optimizing operational efficiency, and the rising need for data-driven decision-making processes. As the hospitality sector continues to evolve, the role of hotel revenue management systems becomes increasingly critical in ensuring competitive advantage and profitability.

One of the primary growth factors for the hotel revenue management system market is the continuous technological advancements in the hospitality sector. The adoption of artificial intelligence, machine learning algorithms, and big data analytics has revolutionized how hotels manage their revenue streams. These technologies enable hoteliers to predict demand patterns more accurately, optimize pricing strategies, and enhance guest experiences, thereby driving revenue growth. Moreover, the integration of these advanced technologies into revenue management systems allows hotels to tailor their services to meet the ever-changing needs of their guests, ensuring personalized experiences and higher customer satisfaction, which in turn enhances brand loyalty and repeat business.

Another critical driver for the market is the growing competition in the hospitality industry, which necessitates the adoption of sophisticated revenue management systems. With an increasing number of hotels entering the market, hoteliers are under pressure to maximize their revenue and maintain profitability. Revenue management systems provide a strategic approach to revenue optimization by analyzing various factors such as market demand, competitor pricing, and booking patterns. By leveraging these insights, hotels can implement dynamic pricing strategies, optimize room inventory, and improve their sales and marketing efforts. This results in increased occupancy rates, higher average daily rates, and ultimately, enhanced revenue performance.

Furthermore, the rising importance of data-driven decision-making processes in the hospitality sector is also propelling the growth of the hotel revenue management system market. In an era where data is considered the new oil, hotels are increasingly relying on data analytics to gain valuable insights into their operations and customer preferences. Revenue management systems equipped with powerful analytics tools enable hoteliers to make informed decisions based on real-time data, allowing them to identify trends, assess market conditions, and adjust their strategies accordingly. This data-driven approach not only helps hotels stay ahead of the competition but also ensures efficient resource allocation and improved financial performance.

From a regional perspective, North America currently dominates the hotel revenue management system market, owing to the high concentration of luxury and high-end hotel chains in the region. The increasing prevalence of advanced technologies and the presence of key market players contribute to the region's strong market position. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period, driven by the rapid expansion of the hospitality sector in countries such as China, India, and Southeast Asian nations. This growth is further fueled by the rising disposable incomes of the middle-class population and the increasing demand for travel and tourism in the region.

Component Analysis

The hotel revenue management system market is primarily segmented by component into software and services. Within this segment, the software component is anticipated to hold a significant share, driven by the increasing demand for sophisticated and efficient management solutions that can optimize hotel operations and boost revenue. Advanced software solutions offer features such as dynamic pricing, demand forecasting, and real-time analytics, which are essential for the effective management of hotel revenues. These software solutions are continuously being enhanced with new capabilities, such as AI-driven insights and automation features, which are attracting more hotel operators to invest in such systems.

On the other hand, the services component within the hotel revenue management system market also plays a crucial role in supporting

The report covers Tourism and Hospitality Industry in Malaysia and is segmented by Type (Chain Hotels and Independent Hotels), and by Segment (Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, Luxury Hotels, and Service Apartments). The report offers market size and forecasts for the hospitality industry in Malaysia market in value (USD billion) for all the above segments.

The Report Covers Hospitality Companies in Singapore and the Market Segmented by Type (chain Hotels and Independent Hotels) and by Segment (service Apartments, Budget, and Economy Hotels, Mid and Upper Mid-Scale Hotels, and Luxury Hotels). The Market Size and Forecasts for the Hospitality Industry in Singapore are Provided in Terms of Value (USD) for all the Above Segments.

These data are used in a research study and may not be redistributed or used for commercial purposes.

Feel free to use it for research purposes or to reproduce the results presented in the article.

When referring to the data set in publications please cite the article as follows: Radojevic, T., Stanisic, N., & Stanic, N. (2016). Inside the Rating Scores: A Multilevel Analysis of the Factors Influencing Customer Satisfaction in the Hotel Industry. Cornell Hospitality Quarterly.

You may also want to cite the data set: Radojevic, T., Stanisic, N., & Stanic, N. (2016), Inside the Rating Scores: A Multilevel Analysis of the Factors Influencing Customer Satisfaction in the Hotel Industry., Mendeley Data, v1 http://dx.doi.org/10.17632/kwsrxshf9x.1

For a detailed description of the variables and their descriptive statistics, please read the article.

Five Star Hotel Market Outlook

The global five star hotel market size is projected to reach USD 186.5 billion by 2032 from USD 93.7 billion in 2023, growing at a compound annual growth rate (CAGR) of 7.2% during the forecast period. This substantial growth is driven primarily by increasing disposable incomes, a surge in international travel, and the expanding middle-class population seeking luxury experiences. The demand for premium hospitality services is on the rise, fueled by a robust tourism industry and a growing inclination towards high-end accommodations for leisure and business travel.

The growth factors for the five star hotel market are multifaceted. Firstly, the escalating affluence of the global population plays a crucial role. As economies grow and the middle class expands, more individuals have the financial capacity to indulge in luxury travel, leading to higher demand for five star accommodations. Additionally, the rapid urbanization and infrastructural development in emerging markets are fostering the growth of the hospitality sector. Cities are becoming hubs for business and tourism, creating a conducive environment for luxury hotels to thrive.

Secondly, the rise in international tourism significantly contributes to market growth. Globalization and the ease of international travel have made it more accessible for people to visit different countries. Events, conferences, and global summits are also on the rise, necessitating high-end accommodation for attendees. Moreover, the increasing popularity of unique and experiential travel has led travelers to seek luxurious and comfortable stays, further propelling the market forward. The rise of social media also acts as a catalyst, with travelers sharing their luxury experiences online, inspiring others to follow suit.

Technological advancements and the integration of smart technologies in hotel operations are additional growth drivers. Modern travelers seek convenience and personalized experiences, which are facilitated by advanced technologies such as artificial intelligence, IoT, and mobile applications. These technologies enhance guest experiences by offering personalized services, seamless check-ins, and smart room controls, thereby attracting more guests to five star hotels. Furthermore, sustainability practices and eco-friendly initiatives adopted by luxury hotels appeal to environmentally conscious travelers, adding another layer to their attractiveness.

In addition to the five star hotel market, the Mid To Upscale Hotel segment is gaining traction among travelers seeking a balance between luxury and affordability. These hotels offer premium services and amenities at a more accessible price point, attracting a diverse clientele, including business travelers, families, and leisure tourists. The growth of this segment is driven by the increasing demand for quality accommodations that provide comfort and convenience without the premium price tag associated with five star hotels. As travelers become more discerning, the Mid To Upscale Hotel segment is poised to capture a significant share of the market, offering a compelling alternative for those seeking value without compromising on quality.

Regionally, the growth prospects for the five star hotel market vary significantly. Asia Pacific is expected to exhibit the highest growth rate due to rapid economic development, a burgeoning middle class, and increasing inbound tourism. Countries like China, India, and Thailand are emerging as key markets for luxury hotels. North America and Europe continue to hold substantial market shares due to established tourism industries and a steady influx of business travelers. The Middle East and Africa are also witnessing growth, driven by ambitious tourism projects and an increasing number of international events hosted in these regions.

Type Analysis

The five star hotel market can be segmented by type into business hotels, suite hotels, airport hotels, resorts, and others. Business hotels cater primarily to corporate travelers, providing facilities such as conference rooms, high-speed internet, and business centers. The demand for business hotels is on the rise due to the increasing number of business trips and corporate events globally. These hotels are strategically located in business districts or near major commercial centers, enhancing their accessibility for business travelers.

Suite hotels, on the other hand, offer luxurious and spacious accommodat