Robust tourism has helped to propel growth in the Hotel and Motel industry in California in recent years as industry revenue has climbed over the five years to 2017. The industry has benefited from rising disposable income and consumer spending, which has increased leisure travel and, as a result, demand for accommodations. Moreover, corporate profit has also risen, driving demand from business travelers. Over the five years to 2022, IBISWorld expects the Hotels and Motels industry in California to continue expanding, though the rate of growth will be moderated slightly by an expected reduction in international travel to the state...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Improvements in consumer spending and corporate profit will drive demand from business and leisure travelers
  • The prevelance of online booking websites has made it easier for guests to compare properties and prices
  • Industry Report - Industry Analysis Chapter

    The Hotels and Motels Industry in California has grown significantly over the five years to 2017. Following the recession, tourism in California returned to growth, luring millions to the beach, desert and mountains in the Golden State. As visitation grew, so did the need for accommodations. As a result of these trends, industry revenue has been growing at an annualized rate of 3.8% over the five years to 2017. Revenue is expected to reach $26.2 billion in 2017, representing an increase of 2.2% from 2016. As demand and revenue have grown, industry profit has also risen in California, reaching a higher level than the national average. This favorable business environment has encouraged entry into the industry, with the number of enterprises rising at an estimated annualized rate of 2.3% o...purchase to read more.

    Additional Insights for the Hotels & Motels in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hotels & Motels in California Industry are

  • Access to multiskilled and flexible workforce
  • Being part of a franchising chain
  • Receiving the benefit of word-of-mouth recommendations
  • IBISWorld analysts also discuss how external factors such as Domestic trips by US residents and Inbound trips by non-US residents in the Hotels & Motels in California industry impact industry performance..

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    What's in this report

    What is the Hotels & Motels in California Industry?

    Operators in this industry provide short-term lodging in hotels, motor hotels (motels) and resort hotels. Establishments may also offer food and beverage services, recreational services, conference room and convention services, laundry services, parking and other services. This industry excludes hotels that have casino facilities attached.

    Industry Products
  • Room rentals from properties with fewer than 75 rooms
  • Room rentals from properties with between 75 and 299 rooms
  • Room rentals from properties with more than 300 rooms
  • Food (including catering)
  • Alcoholic beverages
  • Other services
  • Industry Activities
  • Operating short-term hotels
  • Operating short-term motor hotels
  • Operating short-term resort hotels
  • Operating short-term motels
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic trips by US residents
  • Inbound trips by non-US residents
  • Consumer Spending in California
  • Corporate Profit in California

  • Current Performance
  • Tourism booming
  • Competition high despite consolidation
  • Technology is the future
  • Chart: Revenue Growth

  • Industry Outlook
  • Business and domestic leisure travelers drive demand
  • International uncertainty tempering growth
  • Technology proliferates, drives higher margins
  • Table: Hotels & Motels in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hotels & Motels in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • International Airlines
  • Domestic Airlines
  • Travel Agencies
  • Tour Operators
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Computer & Packaged Software Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Fruit & Vegetable Wholesaling
  • Furniture Stores
  • TV & Appliance Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • Room rentals from properties with between 75 and 299 rooms
  • Room rentals from properties with fewer than 75 rooms
  • Room rentals from properties with more than 300 rooms
  • Food (including catering)
  • Other services
  • Alcoholic beverages
  • Chart: Hotels & Motels in California Industry Products and Services Segmentation

  • Major Markets
  • California
  • Other US States
  • International
  • Chart: Major Market Segmentation for the Hotels & Motels in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and UtilitiesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Hotels & Motels in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hotels & Motels in California Industry

  • Marriott International, Hilton Worldwide Holdings Inc., Ayres Group, InterContinental Hotels Group PLC, Pacifica Hotel Company Inc.,
  • Table: Marriott International - financial performance
  • Table: Hilton Worldwide Holdings Inc. - financial performance
  • Table: Ayres Group - financial performance
  • Table: InterContinental Hotels Group PLC - financial performance
  • Table: Pacifica Hotel Company Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hotels & Motels in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hotels & Motels in California Industry
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer Spending in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Reservation Systems
  • Computerized systems used to store and retrieve information and conduct transactions related to travel.
  • Revenue Per Available Room (Revpar)
  • A measurement that is calculated by multiplying a hotel's average daily room rate by its occupancy rate.
  • Room Rate
  • Actual published room tariffs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Hotels & Motels in California contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

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    This report on Hotels & Motels in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hotels & Motels in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hotels & Motels in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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