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Hospitality Real Estate Sector Market Size (2024 - 2029)

The hospitality real estate market is experiencing a recovery phase following the challenges posed by the global pandemic, which had significantly impacted travel and mobility. The market's expansion is driven by the relaxation of international travel restrictions, leading to increased traveler inflow. Hotels and accommodations dominate the market, with North America leading in investments, closely followed by the Asia-Pacific region. Despite previous disruptions, investment flows remain steady, with Europe attracting substantial foreign investments, particularly from North America and Asia-Pacific. The market is characterized by a strong interest in luxury hotels and resorts, appealing to affluent populations, and is primarily funded by private equity, institutional investors, and investment funds.

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Market Size of Hospitality Real Estate Sector

Hospitality Real Estate Market Summary
Study Period 2020-2029
Market Size (2024) USD 0.55 Trillion
Market Size (2029) USD 1.08 Trillion
CAGR (2024 - 2029) 14.57 %
Fastest Growing Market Europe
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Hospitality Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Hospitality Real Estate Market Analysis

The Hospitality Real Estate Market size is estimated at USD 0.55 trillion in 2024, and is expected to reach USD 1.08 trillion by 2029, growing at a CAGR of 14.57% during the forecast period (2024-2029).

The hospitality real estate market suffered a hard hit by the global pandemic, as travel restrictions, social distancing, and low mobility rates were implemented during the COVID-19 outbreak. Now, the market is in the recovery phase as international travel restrictions were relaxed in some regions, thus resulting in increasing traveler inflow.

Hotels and accommodations hold the largest share of the global market. North America accounts for the highest investments in the hotels and accommodation segment, followed by the Asia-Pacific region. In addition, investors also focus on luxury hotels and resorts in urban areas, which attract upper-middle-class and high-income populations.

Despite the fact that the disruptive pandemic affected investment, flows into the market are uninterrupted. Meanwhile, Europe's hospitality real estate sector experienced the highest number of foreign investments from North America and Asia-Pacific regions. In addition, most of the investments are obtained from private equity, institutional investors, and investment fund entities.

Hospitality Real Estate Industry Segmentation

In real estate, hospitality consists of a wide range of product types, including hotels, travel centers, water parks, amusement facilities, golf courses, cruise ships, and restaurants.

The Hospitality Real Estate Market is segmented by property type (hotels and accommodations, spas and resorts, and other themed properties) and geography (Asia-Pacific, North America, Europe, Latin America, Middle-East, and Africa). The report offers market size and forecasts for the hospitality real estate sector in value (USD) for all the above segments.

The report provides a comprehensive background analysis of the hospitality real estate sector. It also covers the current market trends, market dynamics, technological updates, and detailed information on various segments and the industry’s competitive landscape. Additionally, the COVID-19 impact is also incorporated and considered during the study.

By Property Type
Hotels and Accommodation
Spas and Resorts
Other Property Types
By Geography
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Europe
United Kingdom
Germany
France
Russia
Rest of Europe
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Qatar
South Africa
Rest of Middle-East and Africa
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of Latin America
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Hospitality Real Estate Sector Size Summary

The hospitality real estate market is experiencing a robust recovery following the challenges posed by the global pandemic, which significantly impacted travel and accommodation sectors. As international travel restrictions ease, there is a noticeable increase in traveler inflow, particularly in North America and the Asia-Pacific region, where investments in hotels and accommodations are substantial. The market is characterized by a strong interest from investors, including private equity and institutional investors, who are drawn to luxury hotels and resorts in urban areas. Despite the pandemic's disruptions, investment flows remain steady, with many first-time investors entering the market to diversify their portfolios and seek better yields. The growth is further bolstered by the activities of Real Estate Investment Trusts (REITs), which are actively acquiring and managing various types of hospitality properties.

In the United States, the hospitality sector is outperforming expectations, with hotels exceeding pre-pandemic revenue per available room (RevPAR) levels, driven by increased average daily room rates (ADR). While occupancy rates have shown slight improvements, the primary growth driver remains ADR, with expectations of continued increases. The competitive landscape is marked by the presence of major players such as InterContinental Hotels Group, Marriott International, and Hilton Worldwide, who are expanding their portfolios through strategic partnerships and acquisitions. Global tourism growth is attracting significant investments, with developers focusing on hotels, luxury resorts, and accommodations. Notable developments include Wyndham's expansion in Türkiye and Marriott's plans for a luxury lodge in Tanzania, highlighting the sector's dynamic nature and potential for continued growth.

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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 Market Drivers

        1. 1.2.1.1 Growing Tourism and Travel Industry

        2. 1.2.1.2 Technological Advancements

        3. 1.2.1.3 Changing Consumer Preferences

      2. 1.2.2 Market Restraints

        1. 1.2.2.1 Regulatory and Compliance Hurdles

        2. 1.2.2.2 Seasonality and Market Fluctuations

      3. 1.2.3 Market Opportunities

        1. 1.2.3.1 Luxury and High-end Hospitality

        2. 1.2.3.2 Sustainable and Eco-friendly Concepts

        3. 1.2.3.3 Conversion and Adoptive Re-use

    3. 1.3 Insights into Technological Innovation in the Hospitality Real Estate Sector

    4. 1.4 Insights into Urban Commercial Property Prices and Recent Hospitality RE Transactions

    5. 1.5 Industry Value Chain Analysis

    6. 1.6 Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Suppliers

      2. 1.6.2 Bargaining Power of Consumers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitutes Products and Services

      5. 1.6.5 Intensity of Competitive Rivalry

    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

    2. 2.2 By Geography

      1. 2.2.1 Asia-Pacific

        1. 2.2.1.1 China

        2. 2.2.1.2 Japan

        3. 2.2.1.3 India

        4. 2.2.1.4 South Korea

        5. 2.2.1.5 Rest of Asia-Pacific

      2. 2.2.2 North America

        1. 2.2.2.1 United States

        2. 2.2.2.2 Canada

      3. 2.2.3 Europe

        1. 2.2.3.1 United Kingdom

        2. 2.2.3.2 Germany

        3. 2.2.3.3 France

        4. 2.2.3.4 Russia

        5. 2.2.3.5 Rest of Europe

      4. 2.2.4 Middle-East and Africa

        1. 2.2.4.1 Saudi Arabia

        2. 2.2.4.2 United Arab Emirates

        3. 2.2.4.3 Qatar

        4. 2.2.4.4 South Africa

        5. 2.2.4.5 Rest of Middle-East and Africa

      5. 2.2.5 Latin America

        1. 2.2.5.1 Brazil

        2. 2.2.5.2 Mexico

        3. 2.2.5.3 Argentina

        4. 2.2.5.4 Colombia

        5. 2.2.5.5 Rest of Latin America

Hospitality Real Estate Sector Market Size FAQs

The Hospitality Real Estate Market size is expected to reach USD 0.55 trillion in 2024 and grow at a CAGR of 14.57% to reach USD 1.08 trillion by 2029.

In 2024, the Hospitality Real Estate Market size is expected to reach USD 0.55 trillion.

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