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).

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 *** 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 **** 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 ****** 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 ***** U.S. dollars in 2018.

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 room revenue in the United States reached 97.84 billion U.S. dollars in 2023. This figure shows an increase over the previous year's total of 93.39 billion U.S. dollars. In 2024, the country's hotel room revenue is projected to peak at over 101 billion U.S. dollars.

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

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 USA Hotels Dataset from Booking.com is a rich collection of data related to hotels across the United States, extracted from Booking.com. This dataset includes essential information about hotel listings, such as hotel names, locations, prices, star ratings, customer reviews, and amenities offered. It's an ideal resource for researchers, data analysts, and businesses looking to explore the hospitality industry, analyze customer preferences, and understand pricing patterns in the U.S. hotel market.

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Key Features:

• Hotel Information: Includes hotel names, addresses, star ratings, and descriptions.
• Pricing Data: Nightly rates, discounts, and price variations by room type and season.
• Customer Reviews: Aggregated ratings and detailed user feedback from verified guests.
• Amenities: Detailed list of amenities provided by each hotel (e.g., Wi-Fi, parking, spa, swimming pool).
• Geographical Information: Hotel locations including city, state, and proximity to major landmarks.

Use Cases:

• Sentiment Analysis: Analyze customer reviews to gauge hotel service quality and guest satisfaction.
• Price Analysis: Compare pricing across different hotels, locations, and time periods to identify trends.
• Recommendation Systems: Build recommendation engines based on customer ratings, reviews, and preferences.
• Tourism and Hospitality Research: Understand patterns in hotel demand and services across various U.S. cities.

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.

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.

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.

Revenue per available room (RevPAR) is a metric used in the hospitality industry to measure hotel performance. The measurement is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. In 2022, the RevPAR of the United States hotel industry was forecast to reach 92 U.S. dollars. By 2024, that figure was forecast to increase to 103 U.S. dollars.

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 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.

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.

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).

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.

Number of Businesses statistics on the Hotels & Motels industry in the US

Market Size statistics on the Casino Hotels industry in United States

Snapshot img

Luxury Hotel Market Size 2025-2029

The luxury hotel market size is forecast to increase by USD 79.2 billion at a CAGR of 5.8% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing disposable income of guests and the wider acceptance of online booking platforms. These factors have expanded the market's reach, enabling luxury hotels to attract a larger customer base. However, the high cost associated with luxury hotels poses a challenge for both hoteliers and consumers. Despite this, opportunities exist for hotels to differentiate themselves through exceptional service, unique amenities, and personalized experiences. With corporate industries expanding their reach and influence, the demand for high-end accommodations for business travel and corporate events has rised.
To capitalize on these opportunities, hotels must effectively manage their operational costs, optimize their online presence, and cater to the evolving preferences of luxury travelers. By focusing on these areas, luxury hotels can navigate the competitive landscape and maintain their market position. Moreover, integrated hotel sustainability measures, from energy-efficient designs to waste reduction programs, align luxury with responsibility. The integration of advanced automation solutions has transformed the hospitality industry.

What will be the Size of the Luxury Hotel Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the market, green hotel certifications have gained prominence as travelers prioritize sustainability. Hoteliers invest in brand experience management to differentiate their offerings, while staff communication tools enhance guest services. Guest satisfaction metrics and digital marketing strategies are crucial for hotel revenue forecasting and booking conversion. Big data analytics fuel targeted marketing efforts on e-commerce platforms, reaching high-net-worth individuals and the affluent middle class. Hotel waste management and cost optimization are key areas of focus, with automated room service and staff productivity software streamlining operations. Hotel accessibility features and personalized guest services boost guest loyalty retention.

Hotel sales management and customer segmentation tools enable targeted marketing efforts. Luxury brand positioning relies on exceptional guest experiences, with digital security protocols safeguarding guest data privacy. Hotel energy efficiency and sustainability measures not only reduce costs but also appeal to eco-conscious consumers. Overall, the market is dynamic, with a focus on innovation, guest experience, and operational efficiency. Another significant development is the higher acceptance of online booking platforms among consumers.

How is this Luxury Hotel Industry segmented?

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

Type

  Upscale
  Upper-upscale
  Luxury


Ownership

  Chain
  Independent


Mode Of Booking

  Direct booking
  Online travel agencies
  Travel agents


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Type Insights

The Upscale segment is estimated to witness significant growth during the forecast period. Upscale hotels cater to travelers seeking a balance between affordability and premium services. These establishments provide a range of amenities, including on-site dining, concierge services, meeting facilities, fitness centers, and business centers. Three- and four-star hotels typically fall under this category. Swimming pools and private cruises offer relaxation and exclusivity. Families often choose upscale hotels for vacations due to the availability of children's play areas. Brands like Marriott, Radisson, and Hyatt represent the upscale hotel segment. High-end hospitality technology enhances the guest experience, with mobile check-in processes, digital key systems, and automated housekeeping streamlining operations. Hotel loyalty programs offer rewards and personalized services, while revenue management software optimizes pricing and occupancy.

Customer feedback systems ensure continuous improvement, and property management systems facilitate efficient day-to-day operations. Luxury hotel amenities extend to high-speed internet access, sustainability initiatives, and in-room entertainment systems. Guest preference tracking and revenue optimization strategies cater to individual needs. Hotel marketing automation and online reputation manageme

The North American hotels market, encompassing the United States, Canada, and Mexico, is a substantial and dynamic sector. With a 2025 market size of $40.16 billion and a projected Compound Annual Growth Rate (CAGR) of 8.50% from 2025 to 2033, significant expansion is anticipated. This growth is fueled by several key drivers. Increased tourism, both domestic and international, particularly within the US, contributes significantly. The rise of business travel, particularly in major metropolitan areas, further boosts demand. Additionally, the increasing popularity of leisure travel and the expansion of the middle class in North America contribute to the market's expansion. The market is segmented by service type (business hotels, airport hotels, suite hotels, resorts, and others) and geographic location. The US commands the largest market share due to its robust economy and extensive tourism infrastructure. Canada and Mexico, while smaller, also contribute significantly, particularly benefiting from tourism and proximity to the US. Competitive pressures from established players like Marriott, Hilton, and Hyatt, as well as emerging boutique hotels and independent operators, shape market dynamics. While the market outlook is positive, certain restraints exist. Economic downturns can impact business and leisure travel, reducing hotel occupancy rates. Seasonal variations in tourism also influence demand. Furthermore, rising construction costs and labor shortages pose challenges for new hotel development. However, the industry's adaptability, with innovations like enhanced technology integration and sustainable practices, mitigates these risks. The market's continued growth is strongly projected, driven by the factors mentioned above, despite these challenges. The forecast suggests a steady increase in market value throughout the 2025-2033 period, reflecting the market's overall strength and resilience. Specific regional breakdowns within North America require more granular data but the overall trend points towards continued robust growth. 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.. Notable trends are: North America Dominates the Luxury Hotel Segment Globally.