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US Hospitality Real Estate Sector Market Size (2024 - 2029)

The United States hospitality real estate market is experiencing a recovery trajectory, with its market size showing resilience despite past challenges such as the significant impact of the coronavirus pandemic on hotel occupancy rates and business sales. The sector is witnessing a robust pipeline of new hotel projects and renovations, indicating a positive outlook for growth. Key players in the market are actively pursuing development opportunities, with a notable increase in project announcements compared to previous years. This growth in market size is supported by strong corporate and personal financial positions, a healthy banking system, and continued investor interest in hotel developments.

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Market Size of US Hospitality Real Estate Sector Industry

US Hospitality Real Estate Sector Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR > 5.50 %
Market Concentration Low

Major Players

US Hospitality Real Estate Sector Market Major Players

*Disclaimer: Major Players sorted in no particular order

US Hospitality Real Estate Market Analysis

The United States hospitality real estate sector market is USD 28.1 billion in the current year and is anticipated to register a CAGR of over 5.5% during the forecast period.

  • The coronavirus pandemic caused a decrease in hotel occupancy rates in the United States. As a result, the business sales of the hotel sector saw a drop. The occupancy rates dropped by more than 50% in the US, potentially resulting in a loss of nearly USD 925 billion in business sales in 2020.
  • Even though the US and the hotel industry are facing some economic challenges that can be expected to continue into the near future, corporate and personal balance sheets are reasonably strong, the US banking system is healthy, and the planning of new hotel projects continues. Hotel investors and developers are still eager to move forward on projects and are more mindful when approaching a deal. 428 new projects accounting for 47,034 rooms were announced in the pipeline in the second quarter of 2022. This number more than doubled year over year compared to the second quarter of 2021, when 202 new hotel hotels with 25,653 rooms were recorded. Also of note, in Q2 2022, there were 1,889 hotels with 237,420 rooms in the renovation or conversion pipeline in the US, with project and room conversions reaching an all-time high. It increased 66% year over year by projects and 35% year over year by rooms.
  • In the recently released Q2 2022 United States Construction Pipeline Trend Report, the franchise company leading the United States hotel construction pipeline is Marriott International, with 1,355 projects/167,034 rooms, up 4% by projects year-over-year (YOY). Next is Hilton Worldwide, with 1,312 projects/147,780 rooms, an 8% YOY increase, and InterContinental Hotels Group (IHG), with 789 projects/79,701 rooms, up 2% by projects YOY. Current construction projects with these three franchise companies comprise 66% and 64% of US construction pipeline rooms.
  • Marriott International comprises the most projects under construction and is scheduled to start within the next 12 months, with 249 projects/33,398 rooms and 653 projects/80,395 rooms, respectively. Hilton Worldwide contains the most projects in the early planning stage of the pipeline, with 725 projects/78,879 rooms. These record-high project and room totals for Hilton account for 32% of projects in the early planning stage.

US Hospitality Real Estate Industry Segmentation

The hospitality real estate market comprises owning, acquiring, and managing hotels, motels, luxury resorts, and business-class hotels and leasing out space in the properties to guests.

The report covers a complete assessment of the Hospitality Real Estate Sector in the United States. It includes an assessment of the economy market overview, market size estimation for key segments, and emerging trends in the market segments. The report sheds light on the market trends like growth factors, restraints, and opportunities in this sector. The competitive landscape of the Hospitality Real Estate Sector in the United States is depicted through the profiles of active key players. The report also covers the impact of COVID-19 on the market and future projections.

The Hospitality Real Estate Sector in the United States is segmented into property types (hotels and accommodations, spas and resorts, and other property types). The report offers market sizes and forecasts in value (USD) for all the above segments.

By Property Type
Hotels and Accommodation
Spas and Resorts
Other Property Types
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US Hospitality Real Estate Sector Market Size Summary

The United States hospitality real estate market is experiencing a period of recovery and growth following the challenges posed by the coronavirus pandemic, which significantly impacted hotel occupancy rates and business sales. Despite these setbacks, the sector is showing resilience, with strong corporate and personal balance sheets, a healthy banking system, and ongoing planning for new hotel projects. The market is witnessing a surge in new projects and renovations, with major players like Marriott International, Hilton Worldwide, and InterContinental Hotels Group leading the construction pipeline. These companies are expanding their footprints with numerous projects in various stages, reflecting a robust demand for hospitality real estate in the United States.

The competitive landscape of the US hospitality real estate sector is marked by the presence of established players and the influx of international investors, driven by high tourism rates. Key companies such as Wyndham Hotel Group, Choice Hotels International, and RLH Corporation are actively investing in the accommodation segment. The market's attractiveness is further enhanced by the recovery of international tourism, which has shown significant improvement, reaching a substantial percentage of pre-pandemic levels. This recovery is bolstered by pent-up demand and the easing of travel restrictions, making the US an appealing destination for both tourists and investors in the hospitality real estate sector.

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US Hospitality Real Estate Sector Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Insights on Government Regulations

    5. 1.5 Industry Value Chain Analysis

    6. 1.6 Insights into Technological Innovation in the Hospitality Real Estate Sector

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Property Type

      1. 2.1.1 Hotels and Accommodation

      2. 2.1.2 Spas and Resorts

      3. 2.1.3 Other Property Types

US Hospitality Real Estate Sector Market Size FAQs

The US Hospitality Real Estate Sector Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)

Wyndham Hotel Group, Choice Hotels International, Marriott International, Hilton Worldwide Holdings Inc and RLH Corporation are the major companies operating in the US Hospitality Real Estate Sector Market.

US Hospitality Real Estate Sector Market Report Snapshots

US Hospitality Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)