Hospitality Industry Statistics - Key Hotel Stats & Trends

Like any other customer–centric business, the hospitality industry was also hit by the pandemic. While it saw some grim numbers from 2020-2021, it again started to thrive after the restrictions were eased in 2022. Let’s look at some of the hospitality industry statistics to learn about the fluctuations.  

It is interesting to note that while the pandemic led to empty hotel lobbies and rooms for some time, it also benefited the hospitality industry.  

Silver lining? The hospitality industry gained some new types of travelers such as digital nomads and bleisure travelers. These travelers have been combining work and leisure, helping hotels to make up for the lost time and revenue.  

This and many other factors have led to the changing hotel industry trends, some positives and other just learning points.  

Hospitality Industry Statistics

As the number of hotels grows, services become wider, and the number of travelers rises, hospitality trends and stats also experience growth and become more diverse.  

Hence, in this blog, we will divide them into categories to give our readers a clear understanding of the numbers and the hospitality industry dynamics.  

The categories of hospitality trends and stats are:  

Hospitality industry statistics worldwide

a.) The global hotel market:  

• There are around 187,000 hotels globally as of 2023, with an estimated 17.5 million guestrooms worldwide. 
• The global travel and tourism industry was worth $733 billion in the year 2020, down from its $9.17 trillion value in 2019. 
• There was a total of 1,842 hotels that opened in 2022 worldwide. This figure was expected to grow in the following years to 2,480 global hotel openings in 2023 and 2,707 in 2024.
• The global Hotel and Resorts market size in 2023 is $1.5tr (measured by revenue), expected to experience a growth of 12.3%. 

• The global Hotels and Resorts annualized market growth per year on average between 2018- 2023 is 1.1%.  
• The global hotel and other travel accommodation market is expected to reach $1052.84 billion in 2025 at a CAGR of 7% and $1,453.44 billion by 2031 at a CAGR of 8.5%.

• In 2023, the hospitality industry contributes $4.7 trillion to the global economy every year. 

b.) Region-wise performance:  

• Asia Pacific was reported as the largest region in the hotel and other travel accommodation market, accounting for 35.8% of the global market in 2021, followed by North America, Western Europe, and other regions.  
• In the future, the fastest growing regions in the hotel and other travel accommodation market globally would be Africa and South America, where growth will be at CAGRs of 20.1% and 16.0% respectively from 2021-2026.
• Las Vegas, Nevada is one of the top cities worldwide with the most hotel rooms. It has over 150,000 hotel rooms.
• First World Hotel Malaysia is the biggest hotel globally with 7,351 rooms. 

c.) Leading hotel companies worldwide:  

• The largest hotel company in the world, in terms of the number of properties, is the global chain, Wyndham Hotels & Resorts, with over 9,200 hotels as of mid-2020. Marriott International comes next on the list, with over 7,600 properties, followed by Choice Hotels International with over 7100 hotels. 
• While Wyndham has the most properties, Marriott International has the largest portfolio of hotel rooms/ guest rooms. Marriott had about 1.4 million guestrooms in 2021, over 400,000 more than runner-up Hilton Worldwide in that year. 
• The most valuable travel and tourism brand in the world, according to Brand Finance’s 2021 list is Booking.com. It has a brand value of $8.9B. 

d.) Hotel occupancy statistics and room rates:  

• The global average daily rates (ADRs) were up 3.4% annually by the end of Q1 in 2023. Occupancy increased by 17.6% since the last year. 
• Global revenue per available room (RevPAR) is 21.6% ahead of 2022. 

Hospitality market segment stats (Forecast period: 2021-2026) 

a.) By type  

• This segment includes hotels and motels, casino hotels, bed and breakfast accommodations, and all other traveler accommodations. 
• The hotel and motel market accounted for 68.9% of the total market in 2021, making it the largest segment of the hotel and other travel accommodation market by type. 
• The hotel and motel market is further forecasted to be the fastest-growing segment in the hotel and other travel accommodation market, growing at a CAGR of 13.6% between 2021-26. 
• The most growth potential in the hotel and other travel accommodation markets by type will arise in the hotel and motels market. It will gain $394.8 billion in global annual sales by 2026. 

b.) By mode of booking  

• This segment includes online bookings, direct bookings, and other modes of booking. 
• The direct bookings market accounted for 49.7% of the total market in 2021, making it the largest segment of the hotel and other travel accommodation market by mode of booking.  
• The online bookings segment, projected to be the fastest-growing segment in the hotel and other travel accommodation market, would grow at a CAGR of 18.2% during the 2021-26 period. 
• With the highest growth potential, the online bookings market will gain $226.6 billion of global annual sales by 2026. 

c.) By application  

• This segment includes tourist accommodation (leisure) and official business (professional). 
• The official business (professional) market was the largest segment of the hotel and other travel accommodation markets by application. It accounted for 64.1% of the total market in 2021.  
• Expected to be the fastest-growing segment in the hotel and other travel accommodation markets, the official business (professional) market is expected to grow at a CAGR of 12.7% during the forecasted period.  
• The official business (professional) market will gain $339.3 billion of global annual sales by 2026. 

d.) By price point  

• This segment includes economy, mid-range, and luxury. 
• Accounting for 63.5% of the total market in 2021, the mid-range market was the largest segment of the hotel and other travel accommodation market by price point.  
• However, the luxury market is expected to be the fastest-growing segment in the hotel and other travel accommodation markets in the forecasted period, with growth at a CAGR of 13.1%.  
• Furthermore, the highest growth potential in the hotel and other travel accommodation markets by price point will arise in the economy market. It will gain $107.2 billion in global annual sales by 2026. 

e.) By ownership  

• This segment includes chained and standalone. 
• The standalone market accounted for 68.4% of the total market in 2021, making it the largest segment of the hotel and other travel accommodation market by ownership. 
• However, the chained market is forecasted to be the fastest-growing segment in the hotel and other travel accommodation market. It is expected to grow at a CAGR of 14.5% during 2021-26. 
• The standalone market is seen as the one with the highest potential growth, gaining $317.5 billion of global annual sales by 2026. 

f.) By property type 

• This segment includes hotels, serviced residences, apartment hotels, co-living, and other property types. 
• The hotel market was the largest segment of the hotel and other travel accommodation markets by property type. It accounted for 54.2% of the total market in 2021.  
• The hotel market is further expected to grow at a CAGR of 13.0% during 2021-26, expected to be the fastest-growing segment in the hotel and other travel accommodation markets. 
• The hotel market has the top growth potential and will gain $293.7 billion in global annual sales by 2026. 

Also Read: Hotel Upselling Techniques

Hospitality industry statistics as per guest/customer preferences

• In 2023, 61% of people also intend on planning their vacations further in advance. 
• Nostalgia gateway is the most sought type of vacation and experience in 2023, followed by community minded and splurge vacations. 

• Sustainable traveling and green hotels have been the trends, especially after the pandemic and climate change. 81% of global travelers stated in a survey that sustainable travel matters to them. Furthermore, 50% of the participants said that recent news about climate change has influenced them to make more sustainable travel choices. 
• Post-pandemic, 78% of millennials feel that they would rather spend their money on experiences than on things. 
• In 2023, 42% of travelers would like to go on a break that helps them focus on their mental and physical health. 
• Moreover, in the age of technology, 66% of millennials book their trips using a smartphone, while 74% use their mobile for travel-related research. 
• Around 70% of millennials prefer to book with hotels that offer technologies like contactless check-in and payments. 
• In a survey, 80% of hotel guests said that they would prefer to download and check in/out and gather hotel information through the hotel app.  
• Moreover, 47% of hotel guests will prefer to order room service via an app. 
• Research estimates that digital nomads could be a $1B new market. This was an estimation for the U.S. alone. 
• With work and leisure combined these days, 79% of bleisure travelers said that they volunteer more often for business trips where they can extend and enjoy some vacation time. 

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Hospitality industry employment trends

• During the pandemic, more than 6,70,000 hotel industry operation jobs and nearly 4 million hospitality jobs were lost.

• The hospitality industry’s contribution to the global economy is forecasted to grow to $5.8 trillion in 2027 at a CAGR of 5.5%.

Hospitality industry technology trends

• Around 93% of hoteliers witnessed the biggest gains in terms of efficiency in hotel operations with the use of technology. 
• Around 89% of on-property respondents are likely to report that technology usage benefitted their teams in a survey.  

• More than half i.e., 50% of hoteliers feel technology companies don’t understand their needs. 

• As of 2022, 85.9% of hoteliers reported offering or planning to offer in-room technology, with only 59% of hoteliers using in-room technology before the pandemic. 
• In another survey, 54% of hoteliers said they were implementing technology that would enhance the front desk experience – or eliminate it – by 2025. 
• As per research, there was a 15% increase in conversion rates when hotels added high-quality images, compared to when they posted low-quality photos on their website. 

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Note: CAGR is the compound annual growth rate. 

Sources: 

1. IBIS WORLD - Where knowledge is power 
2. Research And Markets

Frequently Asked Questions:

Q1.) How many hotels are there worldwide in 2023?

A1.) As of 2023, there are 187,000 hotels present worldwide.  

Q2.) What is the current size of the global hotel and resort market?

A2.) The current market size of the hotel and resort industry is 1.5 trillion US dollars as of 2023 which was 1.43 trillion US dollars during 2022. Thus, there’s a significant growth rate of 5% over the previous year.  

Q3.) What are the key trends in hotel bookings for 2024?

A3.) Here are a few key hotel booking trends in 2024-

• Asian travelers show a great amount of interest in bookings in the next 12 months as compared to any other group. Therefore, hoteliers should fasten their seatbelts to connect with guests living in Asian countries as they have become prosperous because of wealth growth and have a keen to travel. 
• As the number of travelers grows, hoteliers expect a growth in direct bookings. Travelers have become more tech-savvy and prefer to book hotels through the hotel’s website. 
• International travel has become immensely popular. Countries like Malaysia, Taiwan, and New Zealand became the places of attraction in 2022. 
• Rooms have even got more expensive, and travelers won’t mind paying extra for that. The average daily rate for hotels has reached $192 in 2022 and rates grew by 11% compared to the previous year. That means modern guests prefer value for money, they want a better experience each time they visit the property. 
• ADR is highest on Fridays in around 90 countries. In 55 % of locations, Thursday has a higher ADR, or it is equal to ADR rates on Saturday. Hence, hoteliers should price their rooms accordingly and implement a dynamic pricing strategy. 

Q4.) Which regions are experiencing the fastest growth in the hotel and travel accommodation market?

A4.) The Asia Pacific region is showing the fastest growth in the hotel and travel accommodation market. 

Q5.) What are the largest hotel companies in the world by number of properties?

A5.) The largest hotel companies in the world by the number of properties include Wyndham Hotels and Resorts (9059 properties) followed by Mariott International (8353) and Choice Hotel International (7467).