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.

As per Cognitive Market Research's latest published report, the Global Hotel market size was $XX Billion in 2024 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.

North America held largest share of XX% in the year 2024 
Europe held share of XX% in the year 2024 
Asia-Pacific held significant share of XX% in the year 2024 
South America held significant share of XX% in the year 2024
Middle East and Africa held significant share of XX% in the year 2024 

Market Dynamics: Key Drivers

The growing hospitality industry has resulted in a rising number of restaurants and driving the market for Hotels

The growing hospitality industry, particularly the rising number of restaurants, is a significant driver for the hotel market, creating a symbiotic relationship where the success of one often fuels the growth of the other. Hotels with diverse and high-quality in-house dining options offer immense convenience to guests. Travelers, whether on business or leisure, appreciate not having to leave the hotel premises to find a good meal. A wide range of dining choices caters to different tastes and dietary needs, making the hotel more attractive.

Additionally, beyond overnight guests, excellent restaurants attract residents, drawing foot traffic to the hotel. This creates a vibrant atmosphere and can position the hotel as a culinary destination, even for those not staying there. This "staycation" trend or local patronage contributes to the hotel's overall revenue and brand visibility. The concept of a "staycation" involves locals opting for a short, leisure break in their own city or a nearby area, often seeking a blend of relaxation and indulgence. Hotels with strong F&B offerings are perfectly positioned to capture this market. Locals might book an overnight stay simply to enjoy the hotel's spa, pool, and, crucially, its high-quality restaurants and bars without the hassle of long-distance travel. This trend surged during the pandemic and has since solidified as a preferred leisure activity.

https://www.digigoyatra.com/blog/why-staycations-are-becoming-the-new-travel-trend-in-india

Market Restraint

The intensifying competition in the industry hinders the growth of the Hotel Market

The market is highly competitive, not only among traditional hotel chains, independent, boutique, but also increasingly with the rise of short-term rental platforms, like Airbnb. These alternatives offer diverse experiences and price points, putting pressure on traditional hotels. This has led to higher consumer expectations than ever for personalized experiences, seamless technology, exceptional service, and value for money, forcing businesses to constantly innovate and invest.

Moreover, to cater to the needs of a wide range of customers, large hotel chains constantly launch new sub-brands for instance, Marriott has launched numerous brands like Moxy, Element, and Autograph Collection to target increasingly niche traveler segments. This means more options for consumers within the same loyalty program, but also more direct competition for individual hotel properties.

In conclusion, intensifying competition, fueled by the rise of alternative accommodations, ever-increasing guest expectations, and pervasive price transparency, is a formidable restraint on the hospitality market. It forces hotels to constantly evolve, invest, and differentiate themselves not just on price, but crucially, on the quality of the experience they deliver. Introduction to the Hotel Market

Hotels have existed since very ancient times to serve merchants and other travelers. A hotel is a managed building or establishment that provides guests with a place to stay overnight, on a short-term basis, in exchange for money. The precise features and services provided to guests can vary quite drastically from one hotel to another.

The growth of the global hotel industry is primarily attributed to a strong resurgence in both leisure and business travel post-pandemic, fueled by rising global disposable incomes and a burgeoning middle class, particularly in emerging economies. This increased affluence and a desire for experiences lead to higher demand for diverse accommodation types, from luxury hotels to boutique stays and short-term rentals.

https://www.revfine.com/hotel-industry/ ...

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

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).

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 *** trillion U.S. dollars and was forecast to grow to around *** trillion U.S. dollars in 2024.

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%.

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 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.

Over the past five years, the Global Hotels and Resorts industry has expanded. The current period started with a pandemic-low revenue level. As business and travel activities gradually resumed, industry revenue surpassed the pre-pandemic level in 2023. However, rising inflation following the pandemic and geopolitical tensions depressed the potential revenue growth. Further, stringent fatal aviation accidents and potential tariff war further deteriorate consumer confidence, inducing them to put off travel plans. Overall, industry revenue is expected to grow at an annualized rate of 14.2% to $1.8 trillion over the five years to 2025, including a 2.4% growth in 2025. In the same year, profit is also expected to reach 18.5%. While the prominence of well-known hotel chains looms over the industry, it still experiences low concentration since it has numerous small independent hotels. Due to low concentration, the industry remains highly competitive, and the steady increase in the supply of new hotel rooms has limited the hotels' ability to raise room prices. However, the industry is changing and continues to become more consolidated. This gives larger chains control over industry parts through loyalty programs and discounted pricing structures. Over the next five years, the largest growth will likely be in Asia and the Pacific, which will help emerging economies surpass several developed economies as favored destinations for tourists. However, uncertainty in some markets, specifically those with political and health risks, will hamper consumer sentiment early during the outlook period, placing pressure on hotels. Further, the potential tariff war between the US and other powerhouses such as China and the EU will likely affect travel rates as these countries strengthen their border control. Even so, more hotels and resorts will be built due to travel rates expected to rise overall, which should drive industry revenue growth. Overall, industry revenue is projected to increase at an annualized rate of 2.2% to $2.0 trillion over the five years to 2030.

The North America Luxury Hotel Market is Segmented by Service Type (Business Hotels, Airport Hotels, and More), by Ownership / Management Model (Chain-Managed, Franchise, and More), by Booking Channel (Direct (Brand. Com & Property), by Online Travel Agencies (OTAs), and More), by Customer Segment (Leisure, Business, and More). The Market Forecasts are Provided in Terms of Value (USD).

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.

Key Trends for the Budget Hotels Market

Integration of Technology and Contactless Services Enhancing Guest Experience

Budget hotels are progressively incorporating technology to optimize operations and improve customer satisfaction. Features such as mobile check-in/check-out, digital room keys, app-based room service, and AI-driven chatbots are becoming standard amenities even in budget accommodations. This trend is driven by the post-pandemic inclination towards minimal contact, operational efficiency, and technology-enabled convenience, enabling budget hotels to remain competitive and fulfill the evolving expectations of guests.

Rise of Hybrid Hospitality Models Blending Affordability with Experience

In response to shift...

The Extended Stay Hotel Market Share size & share value expected to touch USD 146.04 billion by 2032, to grow at a CAGR of 11.6% during the forecast period.

According to Future Market Insights (FMI), the luxury hotel market is estimated at US$ 99.868 billion in 2023 and is projected to reach US$ 117.169 billion by 2033, at an anticipated CAGR of 5.3 % from 2023 to 2033.

Attribute	Details
Market HCAGR (From 2018 to 2022)	4.1%
Market Size - 2018	US$ 81.097 billion
Market Size - 2022	US$ 95.113 billion

Attribute	Details
Market CAGR (From 2023 to 2033)	5.3%
Market Size - 2023	US$ 99.868 billion
Market Size - 2033	US$ 117.169 billion

Country - Wise Insights

Attributes	Details
North America Market Share - 2023	24%
United States Market Share - 2023	6%
Australia Market Share - 2023	5.2%

Attributes	Details
Japan Market Share - 2023	4%
China Market CAGR (From 2023 to 2033)	6.5%
India Market CAGR (From 2023 to 2033)	4.5%

Attributes	Details
Europe Market Share - 2023	20.1%
Germany Market Share - 2023	3.5%
United Kingdom Market CAGR (From 2023 to 2033)	6.6%

Category - Wise Insights

Category	Room Type
Leading Segment	Luxury
Market Share	31%

Category	Type
Leading Segment	Business Hotels
Market Share	28%

Snapshot img

Vietnam Hotel Market Size 2025-2029

The Vietnam hotel market size is forecast to increase by USD 5.33 billion, at a CAGR of 21.1% between 2024 and 2029.

The global hotel market is experiencing significant growth, driven by increasing affordability and rising disposable income levels among consumers. This trend is particularly evident in emerging economies, where the middle class is expanding and travel is becoming more accessible. Mobile check-in and hospitality technology enhance the guest experience, while big data analysis drives revenue optimization and cost control. Furthermore, the application of social media and internet penetration continues to transform the industry, enabling real-time bookings and customer engagement. However, the market faces challenges as well. Climate change and unexpected weather developments pose significant risks, leading to cancellations and operational disruptions.
Hotel operators must adapt to these dynamics by investing in sustainable practices and implementing robust risk management strategies. To capitalize on market opportunities and navigate challenges effectively, companies must stay agile and responsive, leveraging technology and data analytics to optimize operations and enhance the customer experience.

What will be the size of the Vietnam Hotel Market during the forecast period?

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In the dynamic hotel market, service quality continues to be a top priority, with environmental sustainability gaining significant attention. Disaster preparedness and operational excellence are essential for ensuring guest safety. Social media marketing and email campaigns foster brand awareness and loyalty. Energy efficiency and corporate social responsibility are key components of brand image. Online reputation management, review monitoring, and automated services are crucial for maintaining a positive guest journey.
Data analytics, customer relationship management, and digital transformation shape the industry's future. Cloud computing, voice assistants, and virtual concierge services streamline operations and improve guest personalization. Search engine optimization and paid advertising boost visibility, while security measures protect against cyber threats. Employee engagement and keyless entry systems contribute to operational efficiency and guest satisfaction.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Tourist accommodation
  Official business


Type

  Chain hotels
  Independent hotels


Service

  Service apartments
  Mid and upper mid-scale hotels
  Budget and economy hotels
  Luxury hotels


Geography

  APAC

    Vietnam

By Application Insights

The tourist accommodation segment is estimated to witness significant growth during the forecast period. In the tourism industry, accommodation continues to dominate with a significant revenue share in 2024. The market is driven by both domestic and international travelers, with the latter holding a substantial impact. International tourism in Vietnam experienced a remarkable recovery, attracting approximately 17 million visitors in 2024, marking a 39.5% increase from the previous year. This increase contributed to a total revenue of 34,440 million USD. The government's initiatives to boost tourism activities have been instrumental in this growth. Customer experience is a crucial factor influencing travel decisions. Hoteliers focus on various aspects such as room types, customer segmentation, pricing strategies, and guest services to cater to diverse traveler needs.
Property management systems and hotel management systems facilitate operational efficiency and revenue management. Independent and budget hotels cater to different market segments, while luxury hotels and hotel chains offer premium experiences. Technology plays a pivotal role in the hospitality sector. Mobile apps, social media, and online travel agencies provide convenience and personalized services to guests. Artificial intelligence and yield management systems help optimize pricing and inventory. Meeting rooms and fitness centers cater to business and family travelers, respectively. Competitor analysis and channel management are essential for maintaining a competitive edge. Loyalty programs and guest relationship management ensure repeat business and positive guest feedback. Staff training and operational efficiency are vital for delivering excellent guest satisfaction. Global distribution systems and digital marketing expand reach and visibility. Hoteliers adopt various strategies, from room types and pricing to technology and guest services, to cater to diverse traveler needs and preferences. The market continues to evolv

Market Size statistics on the Global Hotels & Resorts industry in Global

The market size of the hotel and motel sector in the United States was valued at approximately 231.1 billion U.S. dollars in 2023. This figure shows a 7.7 percent increase over the previous year's total of 214.6 billion U.S. dollars.

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

The boutique hotel market in the United States is set to explode between 2025 and 2035, thanks in part to the increasing consumer friends for distinct, personalized, unique, and experiential travel lodging. A new generation of boutique hotels rose to meet this demand, with their thoughtful design, carefully curated experiences and prioritization of the destination’s culture.

Metric	Value
Market Size in 2025	USD 19.47 Billion
Projected Market Size in 2035	USD 31.42 Billion
CAGR (2025 to 2035)	4.9%

Region	CAGR (2025 to 2035)
California	5.2%

Region	CAGR (2025 to 2035)
New York	5.1%

Region	CAGR (2025 to 2035)
Texas	4.9%

Region	CAGR (2025 to 2035)
Florida	5.0%

Company/Organization Name	Estimated Market Share (%)
Kimpton Hotels & Restaurants	18-22%
The Standard Hotels	12-16%
Ace Hotel Group	10-14%
1 Hotels	8-12%
Nobu Hotels	5-9%
Other Boutique Hotel Brands & Independent Properties (combined)	30-40%

[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

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