Hospitality Real Estate Market Size
| 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 |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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 Market Trends
Increasing Investments in the Hospitality Real Estate Sector
Many investors are interested in the hospitality real estate sector despite the disruptions caused by the pandemic. Further growth in investments is supported by a great number of first-time investors stepping into the hospitality sector for better yields and to diversify their portfolios.
According to industry sources, investments in the Indian hospitality sector are likely to exceed about INR 19,000 crore (USD 2.3 billion) over the next two to five years.
Furthermore, increasing investments through hospitality Real Estate Investment Trusts (REITs) leverage the market growth by acquiring and managing hotels, motels, luxury resorts, business-class hotels, etc. Some of the major REITs include Apple Hospitality REIT, Summit Hotel Properties, Park Hotels & Resorts, Hersha Hospitality Trust, and Pebblebrook Hotel Trust,
The United States was the country with the highest number of hotel construction projects in the pipeline as of the fourth quarter of 2022, with a total of 5,465. Meanwhile, China came second in the ranking with 3,581 hotel projects in the pipeline.
The United States Experiencing Demand in the Hotel Industry
Despite worries of recession, bank failures, and a liquidity crisis affecting the macro economy, US hotels continue to outperform expectations. In Q1 2023, US hotels exceeded Q1 2019 (pre-pandemic) RevPAR levels by 13%, based on data from STR. Room rates continue to be the primary driver in this performance recovery.
While occupancy in Q1 2023 was still down 2.1 points from the same period in 2019, ADR increased 17%. Leisure travel continues to be strong, even though growth levels are slowing. Individual business travel and group business slowly re-emerged, contributing more significantly to future growth expectations.
According to the industry experts' expectations, the annual occupancy for US hotels in the year 2023 increased slightly less than in the November 2022 outlook, increasing to 63.4%. With slowing growth in occupancies for the balance of this year, now expect average daily room rates to increase 4.1% for the year, with resultant RevPAR up 5.5%. It is approximately 114% of pre-pandemic levels on a nominal dollar basis.
Demand growth from individual business travel and groups is expected to offset a softening in leisure demand, with outbound international leisure travel outpacing inbound, given the relative strength of the dollar. With flattening occupancy levels in 2024, growth is expected to come almost entirely from ADR, with an expected year-over-year increase in RevPAR of 3.5%. It is approximately 118% of pre-pandemic levels.
Hospitality Real Estate Industry Overview
The hospitality real estate sector is a competitive market with many players who are already well-established in their respective regions. Some of the major players present in the market include InterContinental Hotels Group, Wyndham Hotel Group LLC, Choice Hotels International Inc., Marriott International Inc., Hilton Worldwide Holdings Inc., etc.
Most of the players are expanding their business by investing strategically in partnerships, acquisitions, etc. For instance, in January 2024, InnVest Hotels (InnVest), one of Canada's leading hospitality companies, announced the acquisition of 10 Ontario and Halifax Hotels. The acquisition will grow InnVest's Marriott branded franchise and managed portfolio to 14 hotels making us one of the largest owners of the brand in Canada.
Furthermore, hotels and accommodations, luxury hotels, and resorts are the most invested segments in the hospitality real estate sector by the developers. In addition, significant growth in tourism and traveling across the globe leverages market growth by grabbing the attention of various investors.
Hospitality Real Estate Market Leaders
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InterContinental Hotels Group
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Hilton Worldwide Holdings Inc.
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Marriott International, Inc.
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Choice Hotels International, Inc.
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Wyndham Hotel Group, LLC.
*Disclaimer: Major Players sorted in no particular order
Hospitality Real Estate Market News
- June 2023: Wyndham Hotels & Resorts, the world’s largest hotel franchising company with approximately 9,100 hotels spanning more than 95 countries, announced the opening of the 68-room Istanbul New Airport Hotel. It is its first Trademark Collection by Wyndham Hotel in Türkiye. The newly opened hotel adds to Wyndham’s standing as the largest international hotel company in Türkiye, with more than 95 hotels open and operating and more than 20 under development.
- June 2023: Marriott International announced an agreement with Delaware Investment Limited to develop what will be known as JW Marriott Serengeti Lodge in the Serengeti in Tanzania, Africa. The luxury safari lodge is expected to open in 2026. JW Marriott Serengeti Lodge, which is expected to offer 30 private suites, including two presidential suites, will also feature a swimming pool and deck area. Impressively, the lodge will “sit between the Grumeti and Mbalageti Rivers, benefitting from the abundant wildlife that accesses the rivers to the north and south alongside stunning views of the plains surrounding the lodge.
Hospitality Real Estate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Market Overview
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4.2 Market Dynamics
- 4.2.1 Market Drivers
- 4.2.1.1 Growing Tourism and Travel Industry
- 4.2.1.2 Technological Advancements
- 4.2.1.3 Changing Consumer Preferences
- 4.2.2 Market Restraints
- 4.2.2.1 Regulatory and Compliance Hurdles
- 4.2.2.2 Seasonality and Market Fluctuations
- 4.2.3 Market Opportunities
- 4.2.3.1 Luxury and High-end Hospitality
- 4.2.3.2 Sustainable and Eco-friendly Concepts
- 4.2.3.3 Conversion and Adoptive Re-use
- 4.3 Insights into Technological Innovation in the Hospitality Real Estate Sector
- 4.4 Insights into Urban Commercial Property Prices and Recent Hospitality RE Transactions
- 4.5 Industry Value Chain Analysis
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4.6 Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Consumers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitutes Products and Services
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Property Type
- 5.1.1 Hotels and Accommodation
- 5.1.2 Spas and Resorts
- 5.1.3 Other Property Types
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5.2 By Geography
- 5.2.1 Asia-Pacific
- 5.2.1.1 China
- 5.2.1.2 Japan
- 5.2.1.3 India
- 5.2.1.4 South Korea
- 5.2.1.5 Rest of Asia-Pacific
- 5.2.2 North America
- 5.2.2.1 United States
- 5.2.2.2 Canada
- 5.2.3 Europe
- 5.2.3.1 United Kingdom
- 5.2.3.2 Germany
- 5.2.3.3 France
- 5.2.3.4 Russia
- 5.2.3.5 Rest of Europe
- 5.2.4 Middle-East and Africa
- 5.2.4.1 Saudi Arabia
- 5.2.4.2 United Arab Emirates
- 5.2.4.3 Qatar
- 5.2.4.4 South Africa
- 5.2.4.5 Rest of Middle-East and Africa
- 5.2.5 Latin America
- 5.2.5.1 Brazil
- 5.2.5.2 Mexico
- 5.2.5.3 Argentina
- 5.2.5.4 Colombia
- 5.2.5.5 Rest of Latin America
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (Market Concentration and Major Players)
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6.2 Company Profiles
- 6.2.1 Wyndham Hotel Group LLC
- 6.2.2 Choice Hotels International Inc.
- 6.2.3 Marriott International Inc.
- 6.2.4 Hilton Worldwide Holdings Inc.
- 6.2.5 InterContinental Hotels Group
- 6.2.6 Sonesta RL Franchising Inc.
- 6.2.7 Best Western International Inc.
- 6.2.8 G6 Hospitality LLC
- 6.2.9 Aimbridge Hospitality
- 6.2.10 Radisson Hospitality Inc.
- 6.2.11 The Georgetown Company
- 6.2.12 Host Hotels & Resorts LP
- 6.2.13 OTO Development
- 6.2.14 Apple Hospitality REIT Inc.
- 6.2.15 Atrium Hospitality Company*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
** Subject To AvailablityHospitality 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 | ||
| By Geography | North America | United States |
| Canada | ||
| By Geography | Europe | United Kingdom |
| Germany | ||
| France | ||
| Russia | ||
| Rest of Europe | ||
| By Geography | Middle-East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| Qatar | ||
| South Africa | ||
| Rest of Middle-East and Africa | ||
| By Geography | Latin America | Brazil |
| Mexico | ||
| Argentina | ||
| Colombia | ||
| Rest of Latin America |
Hospitality Real Estate Market Research FAQs
How big is the Hospitality Real Estate Market?
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.
What is the current Hospitality Real Estate Market size?
In 2024, the Hospitality Real Estate Market size is expected to reach USD 0.55 trillion.
Who are the key players in Hospitality Real Estate Market?
InterContinental Hotels Group, Hilton Worldwide Holdings Inc., Marriott International, Inc., Choice Hotels International, Inc. and Wyndham Hotel Group, LLC. are the major companies operating in the Hospitality Real Estate Market.
Which is the fastest growing region in Hospitality Real Estate Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Hospitality Real Estate Market?
In 2024, the Asia-Pacific accounts for the largest market share in Hospitality Real Estate Market.
What years does this Hospitality Real Estate Market cover, and what was the market size in 2023?
In 2023, the Hospitality Real Estate Market size was estimated at USD 0.47 trillion. The report covers the Hospitality Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Hospitality Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Real Estate Hospitality Industry Report
Statistics for the 2024 Real Estate Hospitality market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Real Estate Hospitality analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
