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

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...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

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
  • Industry Report - Industry Locations Chapter

    The Hotel Construction industry's establishments are distributed across the United States largely according to population and economic activity. The location of hotel construction establishments is closely tied to a city's, region's or state's share of domestic and international visitor travel, as business or leisure travel destinations can determine the location of hotels and motels.The proportion of hotel and motel establishments in a particular state of region is typically driven by the attractions it offers, particularly those with international significance or recognition, such as the Grand Canyon, Disneyland, Las Vegas and Hollywood. Som...purchase to read more.

    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..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
    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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Hotel Construction Industry
  • 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
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Hotel Construction can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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.

    Contact Us

    Want to speak to a representative? Call us.