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)

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.

The US hospitality market, a significant segment of the global industry, is projected to experience robust growth over the forecast period (2025-2033). With a global market size of $235.96 billion in 2025 and a Compound Annual Growth Rate (CAGR) of 4.87%, the US market, representing a substantial portion of this global figure, is expected to follow a similar trajectory, driven by several key factors. Increased domestic and international tourism, fueled by economic growth and rising disposable incomes, is a primary driver. The burgeoning popularity of experiential travel and the growing demand for unique accommodations beyond traditional hotels, including service apartments and boutique hotels, are also contributing significantly. Furthermore, strategic investments in infrastructure and technological advancements in hospitality management systems are enhancing operational efficiency and guest experience, further bolstering market expansion. However, external factors such as economic downturns, geopolitical instability, and fluctuating fuel prices could potentially restrain growth. The market is highly segmented, with chain hotels maintaining a dominant share, alongside a significant presence of independent hotels catering to niche markets. Within the segmentation by type of accommodation, budget and economy hotels see strong growth driven by price-conscious travelers, while luxury hotels continue to attract high-spending clientele. Within the US context, the competitive landscape is fiercely contested, with major players like Marriott International, Hilton Worldwide, and Airbnb vying for market share. These established brands leverage their extensive networks, strong brand recognition, and loyalty programs to maintain dominance. However, the emergence of innovative hospitality models and the rise of online travel agencies (OTAs) continue to challenge the traditional market structure. The increasing preference for personalized experiences and sustainable tourism practices is impacting hotel operations and investment strategies. A successful future in the US hospitality market will hinge on adapting to evolving consumer preferences, incorporating technology effectively, and demonstrating a commitment to sustainability. The forecast period is likely to see further consolidation through mergers and acquisitions, alongside the entry of new players offering innovative services and accommodations. Therefore, understanding these dynamic market forces is crucial for investors and stakeholders to navigate the future of the US hospitality sector effectively. Recent developments include: September 2023: IHG Hotels & Resorts opened a new Holiday Inn property in South Philadelphia following a conversion and renovation. Located minutes from Philadelphia International Airport and within walking distance of the city’s primary sports and entertainment facilities complex (which includes Lincoln Financial Field, Citizens Bank Park, and Wells Fargo Center), Holiday Inn Philadelphia Airport Stadium Area delivers a convenient, comfortable, and welcoming experience appropriate for the “City of Brotherly Love.”, August 2023: Wyndham Hotels & Resorts and LuxUrban Hotels Inc., a leading hotel operator with a growing portfolio of nearly two dozen assets in key urban markets across the United States, announced a newly signed deal to bring 16 LuxUrban hotels, representing approximately 1,400 rooms, into the Trademark Collection by Wyndham brand.. Key drivers for this market are: Growing Tourism Increasing Demand for Hospitality Services, Consistent Demand for Business Travel and Corporate Hospitality Services. Potential restraints include: Growing Tourism Increasing Demand for Hospitality Services, Consistent Demand for Business Travel and Corporate Hospitality Services. Notable trends are: US Hotel Occupancy Soars, Fueled by Diverse Factors and Economic Uptick.

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.

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.

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 Report Covers US Hospitality Real Estate Companies and it is segmented into property types (hotels and accommodations, spas and resorts, and other property types). The report offers market sizes and forecasts in value (USD billion) for all the above segments.

The US Luxury Hotel Market is expected to reach USD 83.19 billion in 2025 and grow at a CAGR of 6.40% to reach USD 113.45 billion by 2030. The Report is Segmented by Service Type (Business Hotel, Airport Hotel, Suite Hotel, Resort and Spa, and Other Service Types) and Theme (Heritage, Contemporary, Modern, and Other Themes). The Report Offers Market Sizes and Forecasts in Terms of Value (USD) for all the Above Segments.

The US luxury hotel market is expected to grow from $73.10 million in 2025 to $128.28 million by 2033, at a CAGR of 5.12%. The market is driven by the increasing demand for luxury travel and the rising number of high-net-worth individuals. Additionally, the growing popularity of experiential travel and the increasing demand for personalization are also contributing to the growth of the market. The market is segmented by service type, theme, and region. The major service types include business hotels, airport hotels, suite hotels, resorts, and other service types. The major themes include heritage, contemporary, modern, and other themes. The major regions include North America, South America, Europe, Middle East & Africa, and Asia Pacific. Recent developments include: In January 2024, A 20-year partnership has been established between Marriott and MGM Resorts. The Marriott brand now includes 17 MGM properties in the US, including those in Las Vegas. As per the agreement, MGM's and Marriott's sales channels can be used to make property reservations., In June 2023, Hyatt Corporation announced that the World of Hyatt loyalty program has successfully merged the Dream Hotels brand, The Chatwal, The Time New York, and Unscripted properties. Members and visitors can now book these properties through Hyatt channels, giving them access to more stay options and lifestyle experiences.. Key drivers for this market are: Growing Trend of Availing Luxurious Lifestyle While Travelling. Potential restraints include: Changing Consumer Preferences, Rising Operational Costs. Notable trends are: Tourism Growth in United States is Driving the Market.

The size of the U.S. Hotel Toiletries Market was valued at USD 5.02 USD Billion in 2023 and is projected to reach USD 11.96 USD Billion by 2032, with an expected CAGR of 13.20% during the forecast period. The growth is attributed to the increasing demand for single-use toiletries in ordinary and luxury hotels, rising hygiene concerns, and government regulations promoting sustainable practices. The market is also influenced by technological advancements and the growing popularity of eco-friendly products. Key drivers for this market are: Rising Growth of Urbanization to Aid Market Development. Potential restraints include: Large Quantities of Plastic Waste Created by Hotel Toiletries to Impede Market Growth.

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.

U.S. Hospitality Staffing Market size is expected to reach US$ 258.72 Bn by 2032, from US$ 166.49 Bn in 2025, exhibiting a CAGR of 6.5% during the forecast period.

The US Hospitality Commercial Real Estate market, exhibiting a CAGR exceeding 5.50%, presents a robust investment landscape. The market's substantial size (estimated at $XXX million in 2025, based on extrapolated data and industry benchmarks for similar markets) is driven by several key factors. Increased domestic and international tourism, a growing preference for experiential travel, and the expansion of the leisure and business travel segments contribute to heightened demand for hotel accommodations, resorts, and related properties. Further propelling growth are ongoing investments in property renovations and upgrades, the rise of boutique hotels and unique hospitality experiences catering to diverse traveler preferences, and the increasing adoption of technology for enhanced guest services and operational efficiency. However, challenges exist, including the ongoing impacts of inflation on construction costs, potential labor shortages impacting operational efficiency, and the cyclical nature of the hospitality industry's susceptibility to economic downturns. The market is segmented into Hotels and Accommodation, Spas and Resorts, and Other Property Types, with Hotels and Accommodation currently dominating market share. Key players like Marriott International, Hilton Worldwide Holdings Inc., and Wyndham Hotel Group are actively shaping the market through strategic acquisitions, expansions, and brand diversification. The US market, within the broader North American region, is a major contributor to overall market revenue, reflecting its established tourism infrastructure and strong economic performance. The forecast period of 2025-2033 anticipates continued market expansion, albeit potentially at a moderated pace compared to the historical period (2019-2024). This moderation reflects a potential leveling-off of post-pandemic recovery and anticipated economic adjustments. Nevertheless, long-term growth prospects remain positive, underpinned by sustained infrastructure development, a growing middle class with increased disposable income, and the ongoing evolution of the hospitality industry's offerings to meet evolving consumer demands. Successful navigation of the aforementioned challenges—inflation, labor constraints, and economic volatility—will be crucial for sustained, profitable growth within this dynamic sector. Geographical expansion within the US itself and increased penetration into under-served markets will also be key strategic elements for market players. This comprehensive report provides a detailed analysis of the US hospitality commercial real estate market, covering the period from 2019 to 2033. With a focus on key market segments, including hotels and accommodation, spas and resorts, and other property types, this study offers valuable insights for investors, developers, and industry professionals seeking to navigate this dynamic sector. The report utilizes data from the historical period (2019-2024), considers the base year (2025), and provides detailed forecasts for 2025-2033. This in-depth analysis delves into market concentration, competitive landscapes, emerging trends, and growth catalysts, providing a holistic understanding of the US hospitality commercial real estate market. Notable trends are: Increase in Number of Hotels.

The Report Covers Hotels Market in North America and it is segmented by service type (business hotel, airport hotel, suite hotel, resort, other service hotels), geography (United States of America, Canada, and Mexico). The report offers market size and forecasts for the North American luxury hotel market in volume (number of hotels) and value (USD million) for all the above segments.

The US Hospitality Commercial Real Estate market is experiencing robust growth, fueled by a resurgence in travel and tourism following the pandemic, coupled with a sustained demand for leisure and business accommodations. The market, valued at approximately $1.2 trillion in 2025 (estimated based on global market size and US market share considerations), is projected to expand at a CAGR exceeding 5.5% through 2033. Key drivers include increasing disposable incomes, a growing preference for experiential travel, and the ongoing development of innovative hotel and resort concepts targeting diverse demographics. The segment encompassing Hotels and Accommodation commands the largest market share, driven by both established brands and the emergence of boutique hotels and short-term rental platforms. However, the market faces certain restraints, including rising construction costs, labor shortages within the hospitality sector, and potential economic downturns that could impact travel spending. The competitive landscape is characterized by a mix of large multinational chains like Marriott, Hilton, and IHG, alongside regional players and independent operators. This competition fosters innovation and diverse offerings, contributing to the overall market dynamism. Strategic growth strategies adopted by major players include expansion into new geographic markets, strategic acquisitions, and the adoption of technological advancements enhancing guest experience and operational efficiency. Regional variations exist, with North America exhibiting strong growth due to robust domestic tourism and international inbound travel. While the European market is also showing positive trends, it may experience more moderate growth compared to North America due to varying economic conditions and travel patterns. The Asia-Pacific region presents long-term growth potential, although market development may be influenced by economic factors and government policies. The forecast period of 2025-2033 offers significant opportunities for investors and developers focused on sustainable and technologically advanced hospitality properties catering to evolving consumer preferences. Recent developments include: November 2023: US-based hospitality-focused real estate investor Trinity Investments has opened its London office as part of its plan to invest in hospitality assets across western Europe. The London office of the US-based firm - which has $5 billion in assets under management - will target hospitality assets in western Europe, with an emphasis on the UK, Ireland, Spain, Portugal, Italy and Switzerland., October 2023: Blackstone Group is to sell a stake in Hotel Investment Partners to Singaporean sovereign wealth fund GIC. The deal will see GIC take a 35 per cent stake in the company, with Blackstone keeping hold of the rest. It values HIP at more than €4 billion. The acquisition is the latest big bet on the European hotel sector by GIC and also shows the power of sovereign wealth funds in an era of high interest rates, . Notable trends are: Increase in Number of Hotels.

The US luxury hotel market, a significant segment of the global hospitality industry, is experiencing robust growth. With a global market size of $78.19 billion in 2025 and a Compound Annual Growth Rate (CAGR) of 6.40%, the US market, representing a substantial portion of this total, is projected to follow a similar trajectory. Several factors are driving this expansion. Increased disposable incomes among high-net-worth individuals fuel demand for premium accommodations and experiences. The rise of experiential travel, where guests prioritize unique and personalized services over simply lodging, is another key driver. Furthermore, the ongoing recovery from the pandemic, coupled with a resurgence in business travel and corporate events, is boosting occupancy rates and revenue generation within the luxury segment. The market is segmented by service type (business hotels, airport hotels, suite hotels, resorts, and others) and theme (heritage, contemporary, modern, and others), catering to diverse preferences and travel styles. Competition is fierce, with established players like JW Marriott, Hyatt Corporation, Accor, and InterContinental Hotels Group vying for market share alongside boutique luxury brands. While rising operational costs and inflation pose challenges, the resilience of the luxury travel sector and the sustained demand for high-end experiences indicate a positive outlook for the US luxury hotel market in the coming years. The forecast period of 2025-2033 presents significant opportunities for growth within the US luxury hotel market. Strategic investments in technology, sustainable practices, and enhanced guest experiences are crucial for success. Hotels are increasingly leveraging technology for personalized services, streamlined operations, and improved customer engagement. A focus on sustainability is becoming a key differentiator, attracting environmentally conscious travelers. The sector is also witnessing the emergence of innovative hotel concepts that blend luxury with unique experiences, such as wellness retreats and immersive cultural stays. Growth is expected across all segments, with business hotels benefiting from a rebound in corporate travel and resorts capitalizing on the growing popularity of leisure travel. Regional variations exist, with key metropolitan areas and popular tourist destinations experiencing higher demand. However, careful management of operational costs and workforce challenges remain critical for maintaining profitability and sustaining long-term growth in this competitive landscape. Recent developments include: April 2024: Marriott International announced its plans to accelerate its expansion across Europe by the end of 2026, targeting close to 100 hotel conversions and adaptive reuse initiatives.March 2024: Victoria Park Hotels and Marriott International partnered to bring Autograph Collection Hotels to Hong Kong.. Key drivers for this market are: Increasing Number of Travelers Embracing Luxury Lifestyles, Building Brand Reputation and Fostering Loyalty. Potential restraints include: Increasing Number of Travelers Embracing Luxury Lifestyles, Building Brand Reputation and Fostering Loyalty. Notable trends are: The Growth of the Tourism Industry in the United States is Driving the Market.

The US hospitality commercial real estate market, encompassing hotels, resorts, and other property types, is experiencing robust growth, projected to maintain a CAGR exceeding 5.50% from 2025 to 2033. This expansion is fueled by several key drivers. Increased domestic and international tourism, a rebounding post-pandemic travel sector, and a growing preference for experiential travel are significantly boosting demand. Furthermore, strategic investments in property renovations and technological upgrades are enhancing the guest experience and attracting higher occupancy rates. The market is segmented by property type, with hotels and accommodations holding the largest share, followed by spas and resorts. Leading players such as Marriott International, Hilton Worldwide Holdings, and IHG are leveraging their brand recognition and extensive portfolios to capitalize on this growth. However, the market faces certain challenges, including inflation impacting construction and operational costs, potential economic downturns that could affect travel spending, and increasing competition. Regional variations exist, with the Northeast and West Coast potentially exhibiting higher growth due to established tourism hubs and strong economic activity. The market's trajectory suggests continued expansion, though strategic adaptation to economic fluctuations and changing consumer preferences will be crucial for sustained success. The competitive landscape is characterized by a mix of large, internationally recognized chains and smaller, regional operators. Large chains benefit from economies of scale and brand recognition, while smaller operators offer specialized services and cater to niche markets. The market concentration is moderate, with a few dominant players and numerous smaller firms. The market's future success hinges on successfully navigating economic uncertainties, adapting to evolving travel patterns, and continually innovating to meet the ever-changing demands of the hospitality industry. This includes embracing sustainable practices and technologies that enhance efficiency and guest experiences. The forecast indicates continued growth, offering considerable investment opportunities for both established players and new entrants. A sophisticated understanding of regional dynamics and customer segmentation will be key to maximizing returns within this dynamic market. Notable trends are: Increase in Number of Hotels.

US Luxury Hotel Market size was valued at USD 27.1 Billion in 2024 and is projected to reach USD 40 Billion by 2032, growing at a CAGR of 5.5 % from 2025 to 2032.

Key Market Drivers: High-Net-Worth Individuals (HNWI) Population Growth: The growing rich population in the United States strongly influences luxury hotel demand. According to the Federal Reserve's Survey of Consumer Finances, the number of US families with net worths greater than $1 million climbed by 32% between 2019 and 2022, reaching around 23.7 million. This increasingly rich population has more disposable cash to spend on premium vacation experiences. Business Travel Recovery: According to the U.S. Bureau of Labor Statistics, corporate travel expenditure in the hospitality industry will have recovered to 85% of pre-pandemic levels by Q4 2023, with luxury hotels benefiting the most. The U.S. Travel Association reported that business travel budgets climbed by 17% in 2023 compared to 2022, with a noticeable trend toward luxury lodgings. Experiential Luxury Spending Trends: According to the US Bureau of Economic Analysis (BEA) personal consumption data, spending on luxury lodgings and experiences increased by 24% between 2021 and 2023, exceeding the 16% growth in general hotel expenditure over the same time. This mirrors a larger consumer trend toward experiencing luxury over tangible things.

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 U.S. Hospitality Real Estate market report offers a thorough competitive analysis, mapping key players’ strategies, market share, and business models. It provides insights into competitor dynamics, helping companies align their strategies with the current market landscape and future trends.