United States Hotels Market By Price Range (Economy, Midscale, Luxury), By Ownership Model (Independent Hotels, Chain Hotels), By Booking Mode (Direct Booking, Online Travel Agent & Agencies, Marketplace Booking), By Region, Competition Forecast & Opportunities, 2020-2030F

Market Overview

The United States Hotels Market was valued at USD 263.21 Billion in 2024 and is expected to reach USD 395.79 Billion by 2030 with a CAGR of 7.10% during the forecast period. Consumer preferences and shifting travel trends have become significant drivers of growth in the U.S. hotels market. Over the last decade, the changing expectations of travelers have compelled the industry to innovate and evolve. Today’s guests prioritize personalized experiences, with a strong emphasis on convenience, comfort, and value. Millennials and Gen Z travelers, in particular, are influencing the market by fueling demand for boutique, design-forward, and experience-focused accommodations, which has led to the rapid emergence of lifestyle hotel brands. Additionally, this tech-savvy generation values digital amenities, making features like mobile check-in, smart room technologies, and contactless payment options essential components of the modern hotel experience.

According to data released by the U.S. Travel Association in partnership with Tourism Economics, the United States welcomed 77.7 million international visitors in 2024, representing a strong 17% year-over-year increase. This impressive growth highlights the resilience of the country’s inbound tourism sector and signifies a full recovery, surpassing pre-pandemic levels. Canada and Mexico stood out as the top source markets, playing a major role in driving the surge in international arrivals and reinforcing the U.S.'s position as a leading global travel destination.

Key Market Drivers

Increased Travel Demand

One of the primary drivers of growth in the United States hotel market is the surge in travel demand. Both domestic and international travel have experienced significant recovery post-pandemic, as people are eager to resume leisure and business travel. This recovery is primarily fueled by pent-up demand for vacations, conferences, and corporate travel, as well as the growing number of international visitors to the U.S. The reopening of borders, the relaxation of travel restrictions, and the ease of booking travel online have all contributed to a sharp rise in tourism. The increase in travel is also tied to shifts in consumer behavior, with many preferring to travel more frequently, both for leisure and business purposes. Additionally, the U.S. is a major destination for international tourists due to its diverse attractions, ranging from iconic landmarks and cultural destinations to vibrant cities and scenic national parks. The hospitality industry has benefitted from this influx, leading to higher hotel occupancy rates, increased demand for luxury services, and higher average daily rates (ADR). This increased travel demand is projected to continue as consumer confidence grows and airlines expand routes, further boosting the United States Hotels Market. Hotels have responded to this demand by upgrading amenities, expanding their services, and offering attractive packages to cater to both leisure and business travelers. The demand for short-term rentals has also helped push the market forward, with hotels competing by offering similar levels of comfort and personalization.

Rising Average Daily Rates (ADR)

The second major driver of the United States Hotels Market is the rising Average Daily Rates (ADR), a key indicator of hotel profitability. As demand for rooms increases, hotels have been able to raise their prices, reflecting both increased demand and inflationary pressures. ADR growth is a crucial factor for the profitability of hotels, as it directly impacts the revenue per available room (RevPAR), a key metric for the hotel industry. The surge in ADR has been fueled by a variety of factors, including strong demand for premium services and higher-quality rooms, especially in major cities and popular tourist destinations. With the economic recovery, many consumers are now more willing to spend on upgraded hotel experiences, ranging from enhanced room amenities to premium services such as personalized concierge, high-end dining, and exclusive experiences. This shift in consumer preference towards higher-end experiences has given hotels the ability to increase rates without significantly impacting occupancy levels, especially in high-demand areas. Additionally, the rising costs of goods and services, including labor and raw materials, have forced hotels to adjust their pricing strategies, further contributing to ADR growth. Increased demand for luxury accommodations, combined with a recovery in business travel and events, has provided the hospitality industry with the opportunity to push rates higher. Additionally, with the increasing number of high-end, boutique, and luxury hotels opening in key metropolitan areas, consumers are more inclined to choose premium options.

Expansion of Hotel Construction and Development

The third major driver of growth in the United States Hotels Market is the expansion of hotel construction and development. With the strong recovery of the travel and tourism sector, hotel developers have been keen to capitalize on the growing demand for accommodations. As tourism, business travel, and local events increase, hotel chains and independent developers are ramping up their investments in new properties, particularly in high-demand markets such as urban centers, resort destinations, and near transportation hubs like airports and convention centers. This development surge is supported by favorable economic conditions, including low-interest rates and strong investor confidence, which make it an attractive time for developers to build. Many hotels are being designed with modern amenities and services that cater to the evolving needs of today’s travelers, such as eco-friendly options, enhanced digital connectivity, and health-conscious accommodations. The rise of boutique hotels, as well as branded properties and extended-stay options, is further contributing to this boom in hotel development. In addition to traditional hotel developments, there has been a significant rise in the construction of hybrid hotel concepts, which combine elements of both short-term rental properties and traditional hotels. In 2024, Hyatt Hotels & Resorts unveiled plans to open 50 luxury hotels by 2026, following a successful year of expansion. In 2024 alone, Hyatt launched 28 upscale properties, including the Park Hyatt London River Thames and Thompson Palm Springs. The upcoming hotel openings will be divided between two new categories: the “Luxury Portfolio”, featuring high-end, premium properties, and the “Lifestyle Portfolio”, targeting culturally driven and trend-conscious travelers. 

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Key Market Challenges

Labor Shortages and Rising Operational Costs

One of the most pressing challenges in the United States Hotels Market is the ongoing labor shortage and the associated rise in operational costs. Since the COVID-19 pandemic, the hospitality industry has struggled to attract and retain workers. Many former employees left the sector during the crisis due to layoffs, safety concerns, or to pursue careers in other industries with more stable conditions and better compensation. Despite the recovery in travel demand, staffing levels have not returned to pre-pandemic norms. Hotels are now faced with the challenge of maintaining service standards with fewer employees, which can negatively impact guest satisfaction and brand reputation. To attract new talent, many operators have been forced to raise wages, offer signing bonuses, and improve working conditions—measures that increase operating expenses. Additionally, hotels are incurring higher costs for goods and services due to inflation and supply chain disruptions. The labor crunch is especially critical in areas like housekeeping, food and beverage services, and front desk operations, where staff shortages directly affect the guest experience. The inability to fully staff properties has led some hotels to reduce amenities or limit services, which can further hurt competitiveness in a demanding market.

Shifting Consumer Preferences and Competition from Alternative Lodging

The rise of alternative lodging platforms, such as Airbnb and Vrbo, presents a significant challenge for traditional hotels. These platforms offer travelers flexible, often more affordable, and personalized accommodations, particularly appealing to younger generations and extended-stay guests. As consumer expectations evolve, travelers increasingly seek unique experiences, spacious lodging options, and home-like amenities such as kitchens and private living areas—features often lacking in standard hotel rooms. Hotels must now compete not only on price and location but also on experience, design, and personalization. While many hotel brands are attempting to adapt by renovating properties, launching boutique sub-brands, and integrating technology to enhance guest experiences, it can be difficult to match the flexibility and variety offered by short-term rentals. Additionally, consumer preferences have shifted post-pandemic toward more health-conscious, tech-enabled, and contactless services. Guests now expect digital check-ins, app-based room service, and advanced cleanliness protocols. Hotels that fail to meet these expectations may struggle to maintain occupancy and loyalty, especially among tech-savvy travelers.

Key Market Trends

Technology Integration and Smart Hotel Experiences

Technology integration is a dominant trend in the United States Hotels Market, driven by evolving guest expectations for convenience, personalization, and safety. Hotels are increasingly adopting digital solutions to streamline operations and enhance the guest experience. Features such as mobile check-in and check-out, keyless room entry via smartphones, and voice-activated in-room controls are becoming standard in many establishments. Artificial Intelligence (AI) and data analytics are also playing larger roles in hotel management. AI-powered chatbots handle guest inquiries, assist with bookings, and provide real-time support, reducing pressure on front desk staff. Hotels are using guest data to personalize experiences—from recommending nearby attractions to customizing room preferences—enhancing satisfaction and loyalty. Additionally, contactless services, once a response to pandemic-era safety protocols, have now evolved into guest preferences. Automated kiosks, app-based service requests, and digital payment solutions are increasingly expected by travelers. High-speed Wi-Fi, smart TVs, and integrated entertainment systems are also vital amenities, especially for business travelers and younger guests. Hotels investing in tech-forward features are gaining a competitive edge, appealing to a new generation of digitally native travelers.

Sustainable and Eco-Friendly Practices

Sustainability has become a critical focus in the U.S. hotel industry, driven by both consumer demand and regulatory pressures. Modern travelers, especially millennials and Gen Z, increasingly prioritize environmental responsibility when choosing accommodations. As a result, hotels are adopting eco-friendly practices to reduce their environmental footprint and attract eco-conscious guests. Key sustainability initiatives include energy-efficient lighting and HVAC systems, water-saving fixtures, eco-friendly building materials, and waste reduction programs. Many hotels are also eliminating single-use plastics, offering refillable toiletry dispensers, and incorporating recycling stations throughout their properties. LEED-certified buildings and green certifications are now valuable assets that enhance brand reputation and customer trust. In addition to operational changes, hotels are also sourcing local and organic food for their restaurants, supporting sustainable tourism, and partnering with environmental organizations to promote conservation efforts. These practices not only align with guest values but can also reduce operating costs over time, making sustainability a financially sound strategy. Transparency is essential, and many hotels are now including sustainability information on their websites and marketing materials. Guests want to know how their stay impacts the environment and how they can contribute.

Segmental Insights

Price Range Insights

The luxury segment holds the largest share in the United States hotels market, driven by rising consumer demand for high-end, experience-focused accommodations. This segment has seen robust growth in recent years, fueled by increased disposable incomes, a strong rebound in international tourism, and a shift in consumer preferences toward premium, personalized services. Post-pandemic travel trends also reveal a surge in “revenge spending,” where travelers are more willing to splurge on upscale experiences, including luxury stays. Luxury hotels in the U.S. offer more than just comfortable accommodations—they provide exclusive services such as fine dining, spa treatments, personalized concierge support, and curated local experiences. Brands like Four Seasons, Ritz-Carlton, and Waldorf Astoria have maintained dominance by consistently delivering world-class service and innovation. Additionally, the emergence of luxury lifestyle brands and boutique luxury properties has broadened the segment’s appeal to younger, affluent travelers. Urban centers, popular tourist destinations, and coastal regions have seen strong demand in this segment, particularly from business travelers, international tourists, and high-net-worth individuals. The continued investment in luxury hotel development, along with renovations of older properties into premium spaces, reflects confidence in this market’s long-term growth. As travelers prioritize comfort, exclusivity, and unique experiences, the luxury segment is expected to retain its leading position. 

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Regional Insights

The South region has emerged as the leading segment in the United States hotels market, driven by its diverse tourism offerings, strong economic growth, and favorable business climate. States like Florida, Texas, Georgia, and Tennessee are experiencing a boom in both leisure and business travel, contributing to increased hotel occupancy rates and sustained market demand. The region's popularity among both domestic and international tourists is largely attributed to its warm climate, vibrant cultural attractions, world-class theme parks, beaches, music festivals, and historic landmarks. Cities such as Orlando, Miami, Nashville, Atlanta, and Austin have become major hospitality hubs, attracting visitors year-round for vacations, conventions, sporting events, and concerts. The influx of travelers has led to a surge in hotel developments, ranging from luxury resorts and boutique accommodations to extended-stay and economy hotels, meeting the needs of a wide demographic. In addition to tourism, the South benefits from significant corporate investment and population growth, which fuels demand for business travel accommodations. The region’s relatively lower cost of living and business-friendly policies have encouraged companies to expand or relocate there, creating more opportunities for hotel bookings related to corporate travel and relocation. This sustained growth has positioned the South as a key driver in the overall United States Hotels Market.

Recent Developments

• In 2024, Lifestyle Hospitality Capital (LHC) Group acquired The Gates Hotel South Beach in Miami, Florida, through an off-market transaction. The 235-room hotel is set for significant renovation and will be rebranded as The Dean Hotel – Miami Beach, marking the Dean brand’s debut in the U.S. After expanding into Munich and Berlin, this rebranding marks a major step in establishing The Dean's presence in the American hospitality market.
• In 2024, Six Senses Hotels Resorts Spas, under the umbrella of IHG Hotels & Resorts, announced the launch of its first U.S. resort in South Carolina, with a projected opening in 2026. The new property, located along the coast of Hilton Head Island, Daufuskie Island, and Bay Point Island, will include a resort, spa, and residential community. Branded as Six Senses South Carolina Islands, the development emphasizes eco-conscious design and will offer easy access via the Savannah/Hilton Head International Airport.
• In 2023, Wyndham Hotels & Resorts entered into a strategic partnership with LuxUrban Hotels Inc., a notable operator with nearly 20 properties across major urban centers in the U.S. The agreement will bring 16 LuxUrban hotels, encompassing approximately 1,400 rooms, into Wyndham’s Trademark Collection, expanding Wyndham’s footprint in key U.S. city markets and enhancing its portfolio of independently minded, upscale hotels.

Key Market Players

• Marriott International, Inc.
• Radisson Hotel Group
• Accor
• Rosewood Hotel Group
• Hilton Worldwide
• Hyatt Hotels Corporation
• Kimpton Hotels & Restaurants
• Belmond Management Limited
• Wyndham Hotel Group, LLC
• Ace Hotels

Report Scope:

In this report, the United States Hotels Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Hotels Market, By Price Range:

o   Economy

o   Midscale

o   Luxury

• United States Hotels Market, By Ownership Model:

o   Independent Hotels

o   Chain Hotels

• United States Hotels Market, By Booking Mode:

o   Direct Booking

o   Online Travel Agent & Agencies

o   Marketplace Booking

• United States Hotels Market, By Region:

o   South

o   West

o   Midwest

o   Northeast

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the United States Hotels Market.

Available Customizations:

United States Hotels Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).