The United States Hospitality Market Report is Segmented by Chain Scale (Luxury, Upper Upscale, Upscale, and More), by Type (Service Apartments, Budget & Economy Hotels, and More), by Service Model (Full-Service, Select-Service, and More), by End-User, by Distribution Channel, by Ownership & Management Model, by Property Size, and by Region. The Market Forecasts are Provided in Terms of Value (USD).

The United States Luxury Hotel Market Report is Segmented by Room Type (Standard Luxury Room, Suites, Villas/Bungalows, Penthouses & Presidential Suites), Booking Channel (Direct Booking, Online Travel Agencies, and Other), Service Type (Business Hotels, Airport Hotels, Suite Hotels, Resorts, Other Service Types), and Geography (Northeast, Midwest, South, West). The Market Forecasts are Provided in Terms of Value (USD).

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

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 was 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/

ht...

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.

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 is projected to reach a market size of USD 235.96 million by 2033, exhibiting a CAGR of 4.87% during the forecast period. The hospitality industry in the country is driven by factors such as increasing disposable income, rising tourism, and business travel. The demand for vacation rentals and home sharing is also increasing, driven by platforms like Airbnb. The market is segmented into various segments based on type, service, and region. Major players in the market include InterContinental Hotels Group (IHG), Hyatt Hotels Corporation, Best Western Hotels & Resorts, Marriott International, and Hilton Worldwide. Key trends in the market include the adoption of technology, sustainability initiatives, and personalization of guest experiences. 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: Stringent Government Policies and Regulations Limiting the Market Growth, Lack of Skilled Labor is a Challenge for the Market. Notable trends are: US Hotel Occupancy Soars, Fueled by Diverse Factors and Economic Uptick.

Market Size statistics on the Hotels & Motels industry in the US

The market size of the hotel and resort sector worldwide reached *** trillion U.S. dollars in 2024. This showed almost ***** percent growth over the previous year's figure of **** trillion U.S. dollars. What are the leading hotel brands globally? In 2024, 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 **** 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 **** 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 *** 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.

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 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.

According to Cognitive Market Research, the global Budget Hotels market size was 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 shifting ...

The USA Hospitality Real Estate Market Report is Segmented by Property Type (Hotels, Resorts & Spas, Others), by Type (Chain Hotels, Independent Hotels), by Asset Class (Affordable/Budget, Midscale, Luxury), and by Geography (Texas, California, Florida, New York, Illinois, Rest of US). The Market Forecasts are Provided in Terms of Value (USD).

The extended stay hotels industry, due to trends spurred by remote work flexibility, has experienced minor growth over the past five years. With increased corporate profit and consumer expenditure, industry revenue rose at an estimated annualized 11.3%, reaching $19.6 billion over the five years to 2025. This includes a disruption in 2020 with a halt in international travel and a slump in consumer spending attributable to the pandemic. Nonetheless, a strong pre-pandemic recovery and an anticipated surge in leisure travel demand project a promising outlook for the industry, with projected revenue increase of 1.4% in 2025 alone. Over the past five years, the increasing presence of digital nomads who work remotely have fueled industry's growth. Simultaneously, leisure travel has also boded well with the industry as more corporate employees combine travel and work, extending their stay duration for vacations. Besides, extended stay hotels have continually attracted hotel proprietors and entrepreneurs due to their high occupancy rates and lower operational expenditure. As an outcome, there's been a sizable uptick in extended stay room availability, culminating in intensified competitive pricing. The industry's relatively lower operating expenses compared to typical hotels, stemming from factors like infrequent housekeeping service needs, afford a bolstered profit margin despite varying occupancy rates. Upscale extended stay hotels shall witness a potential boost in demand, courtesy of robust business travel and the anticipated resurgence of international travelers. Driven by these factors, industry revenue is projected to increase at a CAGR of 2.1%, hitting $21.7 billion by 2030.

The market size of the boutique hotel industry in the United States reached **** billion U.S. dollars in 2023. A boutique hotel is a special type of small hotel that has less than 100 rooms. These types of hotels are usually very upscale, often located in large, trendy shopping areas of a city, and they offer personalized design and service as a major selling point.

Discover the booming US Hospitality Commercial Real Estate market! This in-depth analysis reveals key trends, drivers, and challenges, including a CAGR exceeding 5.5%, market segmentation, and top players like Marriott and Hilton. Explore growth projections, regional insights, and investment opportunities in this lucrative sector. Notable trends are: Increase in Number of Hotels.

The USA extended stay hotel market is expected to experience strong growth over the next decade. It is projected to grow from an estimated USD 8.6 million in 2025 to USD 16.8 million by 2035, with a CAGR of 6.9% during the forecast period from 2025 to 2035.

The size of the North America Hotels Market market was valued at USD 40.16 Million in 2023 and is projected to reach USD 71.09 Million by 2032, with an expected CAGR of 8.50% during the forecast period. Recent developments include: July 2023: Choice Hotels acquired Radisson Hotel Group Americas. The deal was worth around $675 million, and with this deal, Choice Hotels acquired nine new brands, 624 hotels, and over 67,000 rooms., November 2022: Hyatt Hotel Corporation and Dream Hotel Group reached an agreement whereby Hyatt acquired Dream Hotel Group's lifestyle hotel brand and management platform, including the Dream Hotels, Chatwal Hotels, and Unscripted Hotels brands, with properties in some of the world's most prominent hotel markets across the Americas, Europe, and Asia., October 2022: Marriott International reached an agreement with Hoteles City Express, S.A.B. de C.V., to acquire the highly regarded City Express brand portfolio. The portfolio comprises 152 hotels, including 17,356 rooms across 75 cities in Mexico and three additional countries in Latin America. With this acquisition, Marriott is poised to become the largest hotel company in the Caribbean and Latin America, expanding its presence significantly in secondary and tertiary markets in the region.. Key drivers for this market are: Growing Popularity of Museums, Historical Sites, Zoos and Park is driving the Market Growth, Digitalized Experiences is Driving the Market. Potential restraints include: Distinct institutional cultures and values, Adapting to the changes in technology is tough for the Institutions. Notable trends are: North America Dominates the Luxury Hotel Segment Globally.

The Luxury Hotel Market is estimated to be valued at USD 110.7 billion in 2025 and is projected to reach USD 185.6 billion by 2035, registering a compound annual growth rate (CAGR) of 5.3% over the forecast period.

The Luxury Hotel Marketsize was valued at USD 140.28 USD Billion in 2023 and is projected to reach USD 300.55 USD Billion by 2032, exhibiting a CAGR of 11.5 % during the forecast period. Recent developments include: March 2022 - Rosewood Hotel Group, a global hospitality company, opened a new ultra-luxury hotel in Sao Paulo, Brazil. The hotel has high-end stores, entertainment avenues, artwork houses, garden towers, and luxury accommodations., January 2022 – Reliance Industries, Ltd. invested USD 98.15 million to acquire New York, U.S.-based premium luxury hotel Mandarin Oriental to expand its American luxury hotel industry presence., January 2021: Accor announced opening new facilities under the luxury segment, including Banyan Tree, Fairmont, Sofitel, and others, at various global locations. All facilities will likely comply with Accor’s ALLSAFE hygiene and cleanliness label., January 2021 – Marriott International, Inc. announced its plans to open nearly 100 facilities in Asia Pacific in 2021 with luxury brands such as The Ritz-Carlton, St. Regis, W, The Luxury Collection, and JW Marriott, among others, across the region., March 2020: Luxe Collection introduced five new facilities, including Eurostars Magnificent Mile (Chicago), The Belmont (Dallas), Il Tornabuoni (Florence), CoolRooms Atocha (Madrid), and Zeavola Resort (Koh Phi Phi, Thailand). This would expand Luxe Collections’ boutique 4- and 5-star properties portfolio.. Key drivers for this market are: Blooming Travel and Tourism Industry to Expand Market Size. Potential restraints include: Emergence of Accommodation-Sharing Facilities at Lower Prices to Limit Luxury Hotel Services Demand. Notable trends are: Adoption of Green Practices is the New Trend in Luxury Business.