Hotel Industry Statistics By Market Size, Employment and Leading Brands

Introduction

Hotel Industry Statistics: The hotel industry is a rapidly growing sector with many different categories that involve lodging, food and beverages, recreation, and entertainment, which are continuously developing. During the COVID-19 pandemic, all the travelers stayed at their own houses and did not travel anywhere.

However, unexpectedly, the hotel and tourism industry recovered the losses within two years after the ban on travel restrictions. Because of the profuse amount of information available today, it has become an evolving challenge for the market players to collect all the essential hotel industry statistics to be up to date with the current trends. Let’s examine some of the essential facts and figures of the hotel industry.

Editor’s Choice

• Robots in the hospitality industry provide numerous benefits, from improving service delivery to enhancing health and safety measures.
• Asia has witnessed a big improvement, with ADR up to 18.6% at $126 and occupancy growing 56% year on year. RevPAR will grow by 85% in 2022.
• According to Hotel Industry Statistics, almost 73% of the manual actions in the hotel industry have the technical potential for automation with Artificial Intelligence.
• Worldwide Average Daily Rates were almost 3.4% yearly by the end of Q1 as of 2023.
• 80% of total revenue in the hotel sector is anticipated to come from online sales by 2028, with the United States expected to lead in global hotel revenue.
• The U.S. experienced a loss of 122.8%, Europe faced a loss of almost 131.9%, the Asia-Pacific region faced a loss of 124.1%, and the Middle East countries faced a loss of 124.1%.
• According to Salary.com, the median salary for a hotel employee in the United States is almost $44,111, actually between $34,911 and $55,676.
• According to an Oracle study, 73% of travelers want to book reservations, check in, and order room service via their smartphones.
• One type of robot, known as Social Distancing Robot Ambassadors, is a three-foot robot that delivers items like pillows and groceries to hotel guests.
• Around 80% of the hotel guests stated that they would like to check in / out, download, and collect hotel information from the hotel application.
• In 2023,61% of the population also concentrate on planning their vacations further in well advance.
• In 2023, 42% of travelers would like to take a break that will help them concentrate on their physical and mental health.
• 54% of hoteliers plan to implement technology that will improve or eliminate the front desk experience by 2025.
• The use of mobile keys at the hotel grew by almost 45% in 2020 and 2021, as per the hotel owners’ survey, and was estimated to grow by 31% in 2022.
• As of 2022, Hilton is the top, most famous, and most valued hotel brand across the globe, with a revenue of 12.04 billion.
• By 2026, the size of artificial intelligence in the hotel industry is set to surpass $600 million.
• The worldwide hotel and traveling accommodation market is estimated to have a 7% CAGR by 2025.
• Mexico is the only nation among the top 10 to witness an 8.9% RevPAR decline in 2023, as per CoStar.
• There are a projected 17.5 million guestrooms around the globe, as per the Hotel industry statistics.
• As of 2023, there are almost 187,000 hotels all over the world.
• There are almost 100,535 businesses in the hotel industry, with more continuity being added to the landscape of the industry.

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What is the Hotel Industry?

With a rapidly growing market, the hotel industry is estimated to reach 1.21 trillion by the end of 2024. Users are predicted to grow to almost 1.33 billion by 2027. The present-day hotel industry seems very different, but its actual origin was thousands of years ago.

The hotel industry has two basic rules: respect from the hosts for their customers and respect from the guests to the hosts. Providing services is the basic goal of the hotel industry. It is a business sector that develops around providing accommodation to guests.

The hotel industry consists of subdivisions such as tourism, transportation, events, lodging services, and food and beverage services. These subdivisions generally intersect and correlate to create an overall guest experience.

The main goal is to enhance the guest experience and service excellence, which are the key focus of the hotel industry. To attract repeat stays, hotels in the market can improve restaurant operations for better consumer experience and service.

Difference Between the Hotel and the Hospitality Industry?

Many people think that the hospitality and hotel industries are the same. While many differences segregate them, at the same time, they are also interrelated. The hotel industry is individually responsible for the accommodation of the customers; the hospitality industry is broader and all-inclusive.

The hospitality industry’s scope is related to managing customers and doing business with them; in contrast, the hotel industry refers to the management of hotels and lodging.

The hotel industry is related to and contributes to the growth and corporate development of the hospitality industry.

General Hotel Industry Statistics

• According to h2c, just 10% of hotels across the world say that the cost of living doesn’t affect pricing strategies.
• According to CoStar, Mexico is the only nation among the top 10 to witness an 8.9% RevPAR decline in 2023.
• Around 64% of worldwide hotel chains pass on their elevated amount to customers, with a bigger chain probably doing so more than smaller chains.
• Almost 40% of the United States are individuals, according to the hotel industry statistics.

(Source: dreambigtravelfarblog.com)

• In the above chart, we can see the rate of hotel occupancy from 2018 to 2022.
• As per Skift, 49% of hotel owners predict non-room revenue to show a growing share of their hotel’s revenue over the next three years.
• The worldwide hotel and traveling accommodation market is estimated to have a 7% CAGR by 2025.
• The worldwide hotel tendency for 2023 was almost 32%.
• According to Zippia, there are almost 90,562 hotels and motels businesses in the United States in 2022.
• Between 2018 and 2023, the hotel industry witnessed a 1.1% market growth.
• According to PwC, the revenue from each available room in London is estimated to reach between 101% and 105% of the pre-COVID levels by 2023.
• Although RevPAR in the United States increased during the recession, it grew by 3.4% in 2023.
• CoStar states that the tendency in the top 10 most visited nations has reached around 70.3%, with China witnessing a 16.3% Year-on-Year growth. It is followed by Japan at 7.8% and Indonesia at 6.6%.
• According to Amadeus, the worldwide average daily rates (ADRs) at hotels were $216 per room in June 2023, compared to $184 in June 2019.
• Worldwide, the median RevPAR will be $116 in 2023, compared with $99 in 2022.
• There are almost 700,000 resorts and hotels across the globe as of 2023.
• Between January 2023 and August 2023, the hotel occupancy settled at a median of 68% every month, and there was a 10% growth as compared to the same period in 2022.

Hotel Industry Employment

• According to CBRE, in May 2023, the average number of job openings per hotel was 21, down from 24 in 2022 but higher than the 2019 level.
• In 2023, roughly 2.4 million people were employed by the hotel or motel industry, and the median business in the industry had 12.4 employees.
• The United States economy will grow by almost 8.3 million jobs, with leisure and hospitality accounting for 23.1% of them between 2021 and 2031.
• According to Salary.com, the median salary for a hotel employee in the United States is almost $44,111, actually between $34,911 and $55,676.
• According to the U.S. Travel Association, the Leisure and Hotel sector is currently losing 1.1 million positions.
• The Workforce states that the yearly unemployment rate in the leisure and hotel field exceeds that of many other industries.
• In 2023, a likely upward swing in the employment of the United States Hotels and Motels Industry was marked.
• As per Zippia, 50% of the hotel representatives in the United States are women.
• Presently, almost 10,580 people are working as hotel representatives in the United States.

(Source: costar.com)

• In the above chart, we can see the growth of U.S. hospitality wages from October 2022.
• In the previous year, the United States has observed a 10% rise in job vacancies in the leisure and hotel sectors from January.
• According to Hotel News Resource, the number of people employed in the leisure and hotel industry rose by around 35,000 in October, with the accommodation sector contributing 20,000 of the positions.
• According to Zippa, the rate of joblessness in the accommodation section is 8%, double the national median.
• The United States accommodation section can give jobs to almost 1.6 million people.
• Almost 15.11 people are employed in the United States’s hospitality and leisure section, as per Statista.
• If compared to the other sectors, just mining surpasses the 6.5% job loss seen in the leisure and hotel sector, as stated by U.S. Travel Association data.
• The BLS states that the median yearly unemployment rate in the leisure and hotel industry is 5.8%, the third lowest rate in previous decades.

Global Hotel Industry Statistics

• The hospitality industry in Asia has grown significantly over the past decade. Statista forecasts that the Asian hotel sector will generate $165.40 billion in revenue by 2024, with the average revenue per user (ARPU) reaching $294.80.
• This growth is expected to continue, with the market expanding at an annual growth rate (CAGR) of 3.84% from 2024 to 2028, reaching $192.30 billion by 2028.
• The number of hotel users in Asia is predicted to hit 0.62 billion by 2028, with user penetration increasing from 12.3% in 2024 to 13.4% by 2028.
• Notably, 80% of total revenue in the hotel sector is anticipated to come from online sales by 2028, with the United States expected to lead in global hotel revenue.

Key Factors Driving Growth in the Asian Hotel Market

• Economic Growth: Booming economies increase disposable income and business activities, driving tourism and hotel development.
• Government Policies: Regulations on land use, construction permits, and tourism incentives significantly impact hotel development and operations.
• Infrastructure Development: Improved transportation networks and modern amenities boost a destination’s attractiveness, leading to more hotel investments.
• Cultural Attractions: Rich cultural heritage and iconic landmarks attract tourists, shaping hotel offerings to meet diverse visitor preferences.
• Market Demand: Understanding and responding to evolving consumer preferences is crucial for defining hotel services and offerings.

(Source: trustyou.com)

Regional Variations in the Asian Hotel Market

Southeast Asia- Popular destinations like Thailand, Vietnam, and Singapore are seeing strong growth.

• Thailand – Expected revenue: $1.58 billion by 2024, growing to $1.78 billion by 2028 at a 3.02% CAGR.User penetration: 13.1% in 2024, rising to 14.7% by 2028.The number of users: 10.61 million by 2028.
• Vietnam: Expected revenue: $1.76 billion by 2024, increasing to $2.06 billion by 2028 at a 4.01% CAGR.User penetration: 11.2% by 2028.Number of users: 12.73 million by 2028. Infrastructure improvements, tourism policies, urbanization, and private sector contributions drive growth.
• Singapore: Expected revenue: $1.28 billion by 2024, growing to $1.54 billion by 2028 at a 4.73% CAGR.User penetration: 68.6% in 2024, reaching 80.4% by 2028.Number of users: 4.98 million by 2028.93% of revenue will come from online sales by 2028.

East Asia- Key markets include China, Japan, and South Korea.

• China: Annual revenue: 383 billion CNY.High number of hotel projects: 3,581 in the pipeline. Online sales: Expected to account for 78% of revenue by 2028.
• Japan: The projected market size is $24.79 billion in 2024, reaching $26.29 billion by 2029 at a 1.18% CAGR. Growth was driven by technological advancements and superior services to attract international tourists.
• South Korea: Expected revenue is $9.01 billion by 2024, rising to $10.07 billion by 2028 at a 2.82% CAGR. The number of users is 21.13 million by 2028.

South Asian-Strong demand is driven by technological advancements, changing consumer preferences, and economic factors.

• India: Expected revenue: $9.13 billion by 2024, growing to $11.27 billion by 2028 at a 5.41% CAGR. Number of users: 64.74 million by 2028.User penetration: 3.8% in 2024, rising to 4.3% by 2028.
• Sri Lanka: Expected revenue: $175 million by 2024, increasing to $204.70 million by 2028 at a 4.00% CAGR. Policy measures, infrastructure development, and tourism attractions drive growth.

Central Asia and the Middle East- Growth driven by increased consumer spending, political stability, and investment-friendly environments.

• Qatar: Expected revenue of $0.64 billion by 2024, with a 7.35% CAGR.United Arab Emirates (UAE): Projected revenue to exceed $7 billion by 2026, showing significant growth from 2021.
• Asia’s hotel industry is poised for continued growth due to economic development, supportive government policies, infrastructure improvements, and a rise in travel demand.
• Online sales are becoming increasingly important, and the region’s diverse cultural attractions play a significant role in drawing tourists.
• Each sub-region, from Southeast Asia to East Asia, South Asia, and the Middle East, shows promising growth trends driven by unique local factors.

Global Leading Hotel Brands Statistics

(Reference: enterpriseappstoday.com)

• In the above chart, we can see the leading hotel brands based on the brand value globally.
• As of 2022, Hilton is the top, most famous, and most valued hotel brand across the globe, with a revenue of 12.04 billion.
• The top 2 hotels with the highest value brands worldwide are Holiday Inn and Hyatt, which accounted for $4.15 billion and $5.9 billion, respectively.
• The other valued hotel brands in 2022 across the globe were Crowne Plaza at $1.27 billion, Embassy Suites at $1.43 billion, Intercontinental at $1.45 billion, Shangri–La Hotels and Resorts at $1.91 billion, DoubleTree at $ 2.11billion, Marriott at $2.3 billion, Hampton by Hilton at $3.92 billion revenue.

Factors Influencing Hospitality Trends

Hotel Technology Statistics

• As per HotelTechReport research, around 81% of hotel owners think it is prone that technology will be essential for the results of the hotel industry in five years.
• According to Hotel Industry Statistics, 99% of hotel owners think that their peers will use technology to play a hotel in five years.

(Source: acropolium.com)

• Almost 31% of the hotel owners said “transforming guest journeys,” 15% believe “improving business agility,” and almost 13% think “ innovating for the future,” which shows that most of the hotel owners think technology has the potential to transform the guest-facing and back-office processes.
• Around 39% of hotel owners think that “developing operational efficiency” is technology’s essential value proportion.
• 63% is used to maintain existing systems.
• According to an Oracle study, 73% of travelers want to book reservations, check in, and order room service via their smartphones.
• 23% is allocated for new software implementation.
• 7% is dedicated to research and development.
• 90% of hotels offer or plan to offer free WIFI, making it the most demanded technology by guests.

(Source: acropolium.com)

• The above chart shows the percentage of the Hotel Industry investing in Hotel Tech as of 2022.
• Around 21% of the hotel owners stated that the essential near-term goal of technology is changing the business processes and the operating models. After that, almost 19% of the hotel owners said “driving revenue,” 18% of them said “better customer experiences,” 18% said “improving efficiency,” and 11% said “reduced operational costs.”
• Contactless Payments: 74% of hotels provide contactless payment options.
• Mobile Reservations: 68% of hotels support mobile reservations.
• Digital Signage: 64% of hotels use digital signage.
• 77% of hotel owners prioritize using technology in guest services to drive guest loyalty.
• Other goals include improving physical safety, enabling multi-channel reservations, and enhancing data security.
• Almost 31% of hotel owners think that the revenue management technique has developed the most in the past years, surpassing the customer’s experience at 28%.
• 46% of hotel owners think that their customers will witness technology evolve rapidly, and just 14% of hotel owners say that the most innovation will happen in cost management techniques.
• Hotels spent less than 3% of their revenue on technology in 2022, down from 3% to 4% in 2019.
• Around 86% of hotel owners believe that the essential system for every task is their property management system.
• The use of mobile keys at the hotel grew by almost 45% in 2020 and 2021, as per the hotel owners’ survey, and was estimated to grow by 31% in 2022.
• Roughly 81.7% of hotel owners stated that they implemented at least one new technology, mainly contactless technology, during COVID-19.

(Reference: acropolium.com)

• Around 92% of hotel owners stated that their customers preferred contactless technology and also expected it to be available at the time of the pandemic.
• In comparison, 71% of brand-affiliated respondents and 61% of corporate management respondents reported increased happiness due to technology
• In 2022, 85.9% of hotel owners started planning in-room technologies, compared to just 59% who used in-room techniques before the COVID-19 pandemic.
• Self-check-in Technology: 45% of hotel owners said that using self-check-in technology helped them run their hotels with fewer employees.
• Mobile Key Technology: 31% of hoteliers found that mobile key technology was beneficial when working with a smaller team.
• In 2022, 60% of hotels still used traditional check-in with front desk agents.
• 40% of hotels offered some form of self-service check-in.
• Only 2.7% of hotels used fully self-service options, while 31.5% provided assisted self-service check-in.
• Nearly 56% of hotel owners currently use a third-party payment gateway to make payments, and almost 39% use a unified payment process in their property management system.
• Over 80% of hotel owners believe that technology makes their operations more efficient.
• However, only 40% think technology gives them a competitive edge, indicating a potential for growth in adopting revenue-boosting technologies.
• In response, 96% of hotels are implementing technology to support a contactless experience.
• 89% of property-based respondents said technology made their teams happier.
• 65% of hotel owners believe that adding new technology is the best way to address staffing shortages and attract better talent.
• 54% of hoteliers plan to implement technology that will improve or eliminate the front desk experience by 2025.

Hotel Industry Statistics by Customer Preferences

• Around 78% of millennials will more willingly spend money on different innovative experiences than on worldly things.
• According to Hotel Industry Statistics, hotels with a notable number of high-quality photos uploaded on their websites witness a 15% increase in conversion rates.
• As per the TripAdvisor survey, hotel properties with just one photo see a 138% growth in engagement and are 225% more prone to receive an inquiry of booking.
• Europe has the highest hotel occupancy rate of any part of the globe.
• In 2023,61% of the population also concentrate on planning their vacations further in well advance.
• In 2023, the most sought-after type of vacation and experience was a wistfulness gateway, followed by a community-minded vacation.
• Justifiable travel and green hotels have been a trend, mainly after COVID-19 and the change in the atmosphere.
• 81% of worldwide travelers state that justifiable travel matters to them. And 50% of the respondents stated that the current news about atmospheric change has developed them to make more justifiable travel choices.
• In 2023, 42% of travelers would like to take a break that will help them concentrate on their physical and mental health.

(Reference: botshot.ai)

• In addition to the age of technology, 66% of millennials make bookings for their trips using a mobile phone, whereas 74% use their smartphones for travel-related research.
• Around 80% of the hotel guests stated that they would like to check in / out, download, and collect hotel information from the hotel application.
• Mostly, 47% of hotel customers will think about ordering room services from an application.
• As per research, digital nomads can be a new market worth almost $1 billion.
• With leisure and work connected, 79% of Bleisure travelers stated that they generally volunteer for corporate trips where they can enjoy some free time.

Impact of COVID-19 on Hotel Industry Statistics

• The hotel industry is the main source of business, employment, and financial activities for many countries. It contributes significant tax revenue to both the national and local governments. COVID-19 has impacted and continues to impact the hotel industry at a financial and physical level.
• In 2020, North America and Europe closed their borders to tourists. In contrast, Vietnam suspended the Visa on Arrival scheme, Singapore suspended airport transit, and Japan quarantined cruise ships.
• Containment measures as of June 12, 2020:

• A huge percentage of hotel revenue comes from the traveling market, like airlines. Therefore, the airline industry has indirectly affected the hotel industry.

(Source: sciencedirectassets.com)

• The revenue of the countries suffered a drastic downfall during the COVID-19 pandemic. The U.S. experienced a loss of 122.8%, Europe faced a loss of almost 131.9%, the Asia-Pacific region faced a loss of 124.1%, and the Middle East countries faced a loss of 124.1%.
• The Pacific Island, which depends on tourism, the hotel industry, and resorts, faced the worst phase.

(Reference: statista.com)

• The chart above shows the market size of the hotel industry globally in 2023 and predicted for 2024 and 2029 in billion U.S. dollars.

Robots in Hotel Industry Statistics

• Robots are becoming more popular in the hospitality industry. They offer essential services to guests and help control virus infections.
• One type of robot, known as Social Distancing Robot Ambassadors, is a three-foot robot that delivers items like pillows and groceries to hotel guests.
• These robots are currently used in well-known hotels:
  • Winnie at Embassy Suites by Hilton Los Angeles International Airport North
  • Wally at Residence Inn by Marriott Los Angeles LAX/Century Blvd
  • Hannah at H Hotel Los Angeles, Curio Collection by Hilton, and Homewood Suites by Hilton Los Angeles International Airport

Purpose of Robots in Hotels

I. Delivery Robots: These robots substitute for human workers in certain scenarios, reducing the risk of virus transmission. They can navigate hotel hallways and deliver items directly to guest rooms, ensuring minimal contact.

II. Virus Assassination Robots: To maintain hygiene and kill viruses and germs, robots like the UVD robots from Blue Ocean Robotics use ultraviolet (UV) light. These UV robots can move around autonomously and disinfect areas by killing bacteria and viruses.

(Source: zionmarketresearch.com)

• The chart above shows the global hospitality robots market size, which is estimated to be 25.51% between 2023 and 2030.
• Using robots in hotels can be cost-effective. While the initial investment might be high, the long-term benefits include reduced labor costs and improved hygiene standards, which can lead to higher guest satisfaction and potentially lower costs associated with illness outbreaks.
• Robots can enhance the guest experience by providing timely and efficient service. For example, robots delivering items to rooms can save time for guests and provide a novelty experience that can differentiate a hotel from its competitors.
• With ongoing concerns about health and safety, especially in the wake of the COVID-19 pandemic, robots offer a way to maintain high hygiene standards without risking human health.
• UV robots can disinfect surfaces more thoroughly and quickly than manual cleaning methods.
• Hotels are increasingly adopting these technologies. As the hospitality industry continues to recover from the pandemic, the use of robots is likely to increase.
• Hotels investing in robotic solutions may see a competitive advantage, attracting health-conscious travelers and gaining positive publicity.
• Robots in the hospitality industry provide numerous benefits, from improving service delivery to enhancing health and safety measures.
• By using delivery robots and UV disinfection robots, hotels can maintain high standards of hygiene while offering unique and efficient service to guests.
• As technology advances, the adoption of robots in hotels is expected to rise. They offer a blend of novelty and practicality that meets the industry’s evolving needs.

Hotel Occupancy Statistics and Room Rates

• According to the survey, Mexico was the only country in the top 10 to post a RevPAR decrease of -8.9%.
• ADR has decreased in real terms in Europe, with per-night rates just up 5% to $170. However, occupancy has grown by 17.4% Year over Year, and RevPAR is almost 23.2% from the past years.
• The ADR in the Middle East has increased by 2.4% to $172, with the occupancy up 25.3% year on year, sending RevPAR to 28.3%, increasing to the previous year.
• Asia has witnessed a big improvement, with ADR up to 18.6% at $126 and occupancy growing 56% year on year. RevPAR will grow by 85% in 2022.
• The United States of America ADR is at $296, but occupancy has grown by 12% year over year, and RevPAR is running 11.9% higher than the previous year.
• Japan had a high ADR increase, with China +81.2%, and Indonesia and Germany were looking at a growth of more than 0% YoY.
• The worldwide hotel industry recuperated to pre-pandemic levels, as more than 60% of properties achieved RevPAR.
• Worldwide Average Daily Rates were almost 3.4% yearly by the end of Q1 as of 2023.

Artificial Intelligence in the Hotel Industry Statistics

• A prediction shows that 85% of the guest’s interactions in hotels will be managed by Artificial Intelligence till 2021.
• Hotels whose operations are Artificial intelligence-enabled have witnessed a growth in the consumer satisfaction rating by almost 20%.
• Around 68% of hotel websites worldwide currently offer automated online services with the help of artificial intelligence.
• The hotels that use AI-powered cost management tools have reported a 10% growth in revenue overall.
• The automated check-in kiosks, assisted with AI, have decreased consumer waiting times at the hotels by almost 30%.
• By 2026, the size of artificial intelligence in the hotel industry is set to surpass $600 million.
• The artificial intelligence-driven price promotion can trigger cost uplifts of up to 10% for hotel owners.
• By 2024, AI chatbot adoption is predicted to increase by 22.5% yearly in the hotel industry.
• Almost 25% of the companies in the hotel industry are projected to use Artificial intelligence to improve their business process.
• Around 77% of Chinese customers and almost 62% of customers in the United States predict growing reliance on technology and Artificial Intelligence in the future.
• Till 2025, the revenue of Artificial Intelligence in the worldwide hotel management industry is estimated to rise by $432.77 million.
• Customer-related requests have been lowered by 50% in many hotels where artificial intelligence chatbots are used.
• Almost 750,000 hotel-related jobs can be automated with AI in the next decades.
• According to Hotel Industry Statistics, almost 73% of the manual actions in the hotel industry have the technical potential for automation with Artificial Intelligence.

Conclusion

The hotel industry is an ever-growing and spirited sector, and the statistics put forth in this article demonstrate the importance of the market in the worldwide economy. The hotel industry is estimated to continue to increase and grow in the future years, and it is essential to stay updated with the current trends and developments.

Even though it is streamlined, updated, availability of rooms or new techniques, the hotel industry has to adapt to the guest’s evolving needs and demands.

Rohan Jambhale

Rohan is a senior editor at Sci-Tech Today with extensive knowledge of digital marketing, SEO, and social media optimization (SMO). He is skilled at creating and editing detailed articles filled with accurate statistics that readers find valuable. As a senior editor, Rohan carefully reviews and quality-checks content from multiple writers before it is published. Additionally, he creates infographics to accompany the statistics, making the information easier to understand and more engaging for readers. Rohan's dedication ensures that Sci-Tech Today delivers high-quality and informative content to its audience.

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