US Hospitality Real Estate Market Size
| 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
*Disclaimer: Major Players sorted in no particular order |
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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 Market Trends
Increase in Number of Hotels
According to the latest United States Construction Pipeline Trend Report, the total US construction pipeline is 5,220 hotels with 621,268 rooms at the close of 2022's second quarter. It was up 9% year over year by projects and 4% year over year by rooms. In Q2 2022, 965 hotels with 130,914 rooms were under construction. It was down 17% year over year by projects and 18% year over year by rooms. Projects scheduled to start in the next 12 months at 2,009 hotels with 232,163 rooms are up 9% year over year by projects and by rooms.
Projects and rooms in early planning reached a record high in the second quarter, at 2,246 hotels with 258,191 rooms. It is up 26% year over year by projects and 15% year over year by rooms. During the first and second quarters of 2022, the US opened 247 new hotels with 28,116 rooms. At the close of Q3, 987 projects/135,050 rooms were under construction in the US Projects scheduled to start construction in the next 12 months stand at 2,074 projects/236,894 rooms. It was up 14% by projects and 13% by rooms YOY, respectively. 733 hotels with 87,253 rooms are expected to open in 2023, representing a 1.5% increase in new supply. Further, 848 hotels with 93,581 rooms are expected to open in 2024 for a 1.6% new supply increase.
Growing Needs for Construction is Driving the Market
International tourism continued its recovery in January 2022, with a much better performance than the weak start to 2021. International tourism showed robust performance in January-September 2022, with arrivals reaching 62% of pre-pandemic levels in the first nine months of 2022. An estimated 700 million tourists traveled internationally between January and September, more than double (+133%) the number recorded in 2021. Strong pent-up demand, improved confidence levels, and the lifting of restrictions in many destinations boosted the results. Monthly arrivals climbed from -64% in January 2022 (versus 2019) to -27% in September, confirming international travel's rapid and sustained recovery throughout the year.
Tourism performance was particularly strong in the third quarter of 2022 (-26% over 2019) when an estimated 340 million international arrivals were recorded worldwide, almost 50% of the nine-month total. International arrivals to the United States grew to 22.1 million in 2021, up from 19.2 million in 2020. Spending by international visitors also grew, reaching USD 81.0 billion, or 34% of 2019's total. Nearly eight in 10 business travelers are expected to attend a conference, convention, or trade show in the next six months, similar to but slightly down from Q2 2022.
US Hospitality Real Estate Industry Overview
The hospitality real estate sector in the United States is a competitive market with many players already well-established in the region and many other regions. Most of the players are investing strategically in the accommodation segment in the United States, and the country is welcoming various investors worldwide. The high tourism rate is also helping the region to get more attention from various investors. Some major players in the Hospitality Real Estate Sector in the United States are Wyndham Hotel Group, Choice Hotels International, Marriott International, Hilton Worldwide Holdings Inc, and RLH Corporation.
US Hospitality Real Estate Market Leaders
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Wyndham Hotel Group
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Choice Hotels International
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Marriott International
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Hilton Worldwide Holdings Inc
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RLH Corporation
*Disclaimer: Major Players sorted in no particular order
US Hospitality Real Estate Market News
November 2023: US-based hospitality-focused real estate investor Trinity Investments has opened its London office as part of its plan to invest in hospitality assets across western Europe. The London office of the US-based firm - which has $5 billion in assets under management - will target hospitality assets in western Europe, with an emphasis on the UK, Ireland, Spain, Portugal, Italy and Switzerland.
October 2023: Blackstone Group is to sell a stake in Hotel Investment Partners to Singaporean sovereign wealth fund GIC. The deal will see GIC take a 35 per cent stake in the company, with Blackstone keeping hold of the rest. It values HIP at more than €4 billion. The acquisition is the latest big bet on the European hotel sector by GIC and also shows the power of sovereign wealth funds in an era of high interest rates
US 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 Drivers
- 4.2.2 Restraints
- 4.2.3 Opportunities
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Insights on Government Regulations
- 4.5 Industry Value Chain Analysis
- 4.6 Insights into Technological Innovation in the Hospitality Real Estate Sector
- 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
6. COMPETITVE INTELLIGENCE
- 6.1 Market Concentration
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6.2 Company profiles
- 6.2.1 Wyndham Hotel Group
- 6.2.2 Choice Hotels International
- 6.2.3 Marriott International
- 6.2.4 Hilton Worldwide Holdings Inc
- 6.2.5 InterContinental Hotels Group (IHG)
- 6.2.6 Best Western Hotels & Resorts
- 6.2.7 G6 Hospitality
- 6.2.8 RLH Corporation
- 6.2.9 Canyon Equity LLC
- 6.2.10 Host Hotels & Resorts
- 6.2.11 Noble Investment Group
- 6.2.12 DiamondRock Hospitality Company
- 6.2.13 HEI Hotels & Resorts
- 6.2.14 RobertDouglas
- 6.2.15 Coast Hotels*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
** Subject To AvailablityUS 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 |
US Hospitality Real Estate Market Research FAQs
What is the current US Hospitality Real Estate Sector Market size?
The US Hospitality Real Estate Sector Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in US Hospitality Real Estate Sector Market?
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.
What years does this US Hospitality Real Estate Sector Market cover?
The report covers the US Hospitality Real Estate Sector Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the US Hospitality Real Estate Sector Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Hospitality Real Estate Sector Industry Report
Statistics for the 2024 US Hospitality Real Estate Sector market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Hospitality Real Estate Sector analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
