Overview

Building up: Rising disposable income and overall economic improvement will aid demand

The Hotel Construction market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$17bn
Annual Growth
12-17
12.3%
Annual Growth
17-22
Profit
Employment
10,334
Business
1,107

Industry Threats & Opportunities

  • Rising travel rates and consumer spending will encourage increased hotel construction
  • Rising occupancy and room rates at US hotels have helped propel the industry’s growth
  • Rising disposable income will result in increased expansion efforts for hotel construction

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    Industry Analysis & Industry Trends

    In early 2012, the Hotel Construction industry began its recovery, led by building booms in New York and rising occupancy rates at hotels across the nation. In the years since, industry revenue has grown at a staggering pace, outgrowing the overall nonresidential construction sector and many of its subsectors. In coming years, the industry is poised to finish a strong, but slowing recovery. Rising disposable income as the economy continues to recover will underpin greater demand for accommodation services, resulting in increased expansion efforts for hotel and motel construction. Moreover, domestic travel within the United States is expected to accelerate, resulting in increased demand for hotels and motels...

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    Industry Report - Industry SWOT Analysis Chapter

    The Hotel Construction industry is in the mature stage of its industry life cycle. Over the 10 years to 2022, industry value added, which measures the industry's contribution to the overall economy, is forecast to increase at an annualized rate of 9.7%. By contrast, GDP is projected to rise at an annualized rate of 2.0% during the same period. Although industry value added has grown far faster than the overall economy, this is largely due to the boom-and-bust cycle characteristic of the real estate market, with its sharp downturn during the recession leaving it at an all-time low. The industry's climb from this hole has been fast and thorough. By ..

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    Additional Insights for the Hotel Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hotel Construction Industry are

  • Access to highly skilled workforce
  • Ability to compete on tender
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Consumer spending in the Hotel Construction industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Hotel Construction Industry?

    Operators and contractors in the Hotel Construction industry engage in new construction, addition, reconstruction and maintenance projects for accommodation establishments. These establishments range in size, but largely comprise hotels, motels, resorts and related structures.

    Industry Products
    General contracting
    Renovations
    Construction management services
    Other nonbuilding construction services
    Industry Activities
    Luxury hotel construction
    Upper-upscale hotel construction
    Upscale hotel construction
    Upper-midscale hotel construction
    Midscale hotel construction
    Economy hotel construction
    Independent hotel construction

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Value of private nonresidential construction
  • Consumer spending
  • Domestic trips by US residents
  • Inbound trips by non-US residents
  • Yield on 10-year Treasury note

  • Current Performance
  • Picking up the pieces
  • Recovering profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • More stable underlying demand
  • Industry expansion
  • Table: Hotel Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hotel Construction Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Real Estate Investment Trusts
  • Hotels & Motels
  • Casino Hotels

  • Key Selling Industries
  • Cement Manufacturing
  • Concrete Pipe & Block Manufacturing
  • Construction
  • Construction & Mining Equipment Wholesaling
  • Glass Product Manufacturing
  • Heavy Equipment Rental
  • Iron & Steel Manufacturing
  • Property, Casualty and Direct Insurance

  • Products & Services
  • General contracting
  • Renovations
  • Construction management services
  • Other nonbuilding construction services
  • Chart: Hotel Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Upper midscale
  • Upscale
  • Independent
  • Upper upscale
  • Midscale
  • Luxury
  • Economy
  • Chart: Major Market Segmentation for the Hotel Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Hotel Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hotel Construction Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hotel Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Hotel Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of private nonresidential construction (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Average Daily Rate
  • A measure of the average rate paid for rooms sold, calculated by dividing room revenue by rooms sold.
  • General Contractor
  • Also called a prime contractor. An individual or company that manages the construction of a structure for a property owner or developer and may retain a labor force or use subcontractors.
  • Occupancy
  • The percentage of available rooms that are sold during a specified period of time. Occupancy is calculated based on the number of rooms sold divided by the number of rooms available.
  • Tender
  • A written offer or bid to contract goods or services at a specified cost or rate.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hotel Construction:
    • 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 Hotel Construction 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 Hotel Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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