Hotels & Motels in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS 72111Revenue
$239.0bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
1m
Businesses
112k
Wages
$XX.Xbn
Hotels & Motels in the US industry analysis
The need for hotels and motels depends heavily on domestic and international tourism levels, making these businesses susceptible to the overall economic environment. The COVID-19 pandemic's travel restrictions mostly paused travel activity for an extended period of time, causing hotels and motels to be one of the industries hit the hardest in 2020. The lifting of those travel restrictions resulted in skyrocketing hotel revenue in subsequent years but rising inflation pushed some consumers to reduce spending on leisure activities, causing revenue growth to slow down. Hotel revenue is estimated to have fallen at a CAGR of 0.4% to $239.0 billion over the past five years, including 3.4% growth in 2024.
Trends and Insights
- Pent-up desire to travel skyrocketed demand for accommodations. As pandemic-related travel restrictions were lifted, more people took previously postponed or newly planned trips domestically and abroad.
- Hotels and motels with low operating costs were not as affected by the pandemic. By keeping costs low, these businesses could remain open with little revenue, enabling them to survive the pandemic.
- Densely populated areas and metropolitan cities are prime locations. These areas bring more tourism from foreign travelers as well as domestic visits.
- Extra services can make a hotel stand out. Offering a unique experience creates a lure to the hotel, allowing it to grow in popularity.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.4 % over the past five years, to reach an estimated $239.0bn in 2024.
Trends and Insights
Growth continues despite uncertain economic conditions, but at a slower pace
- High consumer spending and low unemployment create a positive financial environment for domestic travel, because consumers have more resources to allocate toward discretionary spending. All of this has enabled demand for accommodation to bounce back quickly from the pandemic.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Economic uncertainty will contribute to slowing growth
- The Federal Reserve’s 11 interest rate increases in 2022 and 2023 have resulted in growing uncertainty among consumers and impacted leisure travel.
Biggest companies in the Hotels & Motels in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Marriott International Inc. | 17,791.2 | 2,804.8 | 15.8 | |
Hilton Worldwide Holdings Inc. | 8,467.5 | 2,170.6 | 25.6 | |
Best Western International, Inc. | 8,283.8 | 1,939.1 | 23.4 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Guest room rentals from properties with under 75 rooms, Guest room rentals from properties with between 75 and 299 rooms and Guest room rentals from properties with between 300 and 500 rooms. Guest room rentals from properties with under 75 rooms is the largest segment of the Hotels & Motels in the US.
Trends and Insights
Motels were the segment least affected by the pandemic
- Hospitality properties with fewer than 75 rooms are often motels, especially if parking is accessible directly from the room. Motels usually have lower operating costs and can stay open even with low occupancy rates, which helped them to survive the pandemic.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Casino Hotels in the US
- Bed & Breakfast & Hostel Accommodations in the US
- Campgrounds & RV Parks in the US
Complementors
- Non-Hotel Casinos in the US
- Bars & Nightclubs in the US
International industries
- Global Hotels & Resorts
- Hotels & Motels in Canada
- Hotels and Resorts in Australia
- Motels in Australia
- Serviced Apartments in Australia
Table of Contents
About this industry
Industry definition
Operators in this industry provide short-term lodging in hotels, motor hotels (motels) and resort hotels. Operators 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.
What's included in this industry?
Operating short-term hotelsOperating short-term motor hotelsOperating short-term resort hotelsOperating short-term motelsCompanies
Marriott International Inc.Hilton Worldwide Holdings Inc.Best Western International, Inc.Purchase this report to view all 6 major companies in this industry.
Related Terms
REVENUE PER AVAILABLE ROOM (REVPAR)ROOM RATECOMPUTER RESERVATION SYSTEMS (CRS)Industry Code
NAICS 72111 - Hotels & Motels in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Pent-up desire to travel skyrocketed demand for accommodations. As pandemic-related travel restrictions were lifted, more people took previously postponed or newly planned tr...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Hotels and motels with low operating costs were not as affected by the pandemic. By keeping costs low, these businesses could remain open with little revenue, enabling them t...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Densely populated areas and metropolitan cities are prime locations. These areas bring more tourism from foreign travelers as well as domestic visits.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Extra services can make a hotel stand out. Offering a unique experience creates a lure to the hotel, allowing it to grow in popularity.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Large hotels have online presence. They are able to showcase their amenities, services, rooms and other features online, creating positive expectations. Online booking increa...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Marriott International Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Hilton Worldwide Holdings Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Best Western International, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Marriott International Inc., and factors influencing its performance in the industry
- Description and key data for Hilton Worldwide Holdings Inc., and factors influencing its performance in the industry
- Description and key data for Best Western International, Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Travel restrictions stifled growth during the pandemic, resulting in plummeting revenue. Hotels have recovered from pandemic-related losses as the associated domestic and int...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Investment in training and onboarding is high. This is driven by the elevated turnover rates hotels endure and the need for skilled workers to provide a positive customer exp...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hotels & Motels in the US industry in United States in 2024?
The market size of the Hotels & Motels in the US industry in United States is $239.0bn in 2024.
How many businesses are there in the Hotels & Motels in the US industry in 2024?
There are 112k businesses in the Hotels & Motels in the US industry in United States, which has declined at a CAGR of 1.4 % between 2019 and 2024.
Has the Hotels & Motels in the US industry in United States grown or declined over the past 5 years?
The market size of the Hotels & Motels in the US industry in United States has been declining at a CAGR of 0.4 % between 2019 and 2024.
What is the forecast growth of the Hotels & Motels in the US industry in United States over the next 5 years?
Over the next five years, the Hotels & Motels in the US industry in United States is expected to grow.
What are the biggest companies in the Hotels & Motels in the US market in United States?
The biggest companies operating in the Hotels & Motels market in United States are Marriott International Inc., Hilton Worldwide Holdings Inc. and Best Western International, Inc.
What does the Hotels & Motels in the US in United States include?
Operating short-term hotels and Operating short-term motor hotels are part of the Hotels & Motels in the US industry.
Which companies have the highest market share in the Hotels & Motels in the US in United States?
The company holding the most market share in United States is Marriott International Inc..
How competitive is the Hotels & Motels in the US industry in United States?
The level of competition is high and increasing in the Hotels & Motels in the US industry in United States.
