Hospitality Market Report 2026

The hospitality market size has grown strongly in recent years. It will grow from $5.52 trillion in 2025 to $5.82 trillion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to growth of tourism industry, expansion of hotel chains, rising travel demand, urbanization and business travel, development of leisure destinations.

The hospitality market size is expected to see strong growth in the next few years. It will grow to $7.47 trillion in 2030 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to increase in global tourism, demand for personalized guest experiences, adoption of smart hospitality solutions, growth of food and beverage services, expansion of mixed use hospitality spaces. Major trends in the forecast period include growth of experience driven hospitality, expansion of digital booking platforms, rising focus on sustainable hospitality practices, integration of smart hotel technologies, growth of food and beverage services.

The expansion of the tourism industry is expected to drive the growth of the hospitality market in the coming years. The tourism industry represents a broad economic sector that includes a wide range of activities, businesses, and services associated with travel and leisure. Hospitality plays a critical role within this sector by providing accommodation, dining, and related services that enhance visitor experiences and make destinations more attractive and accessible. For example, in December 2023, according to the Australian Bureau of Statistics, an Australian government agency, domestic tourism consumption in Australia increased by $34.9 billion to reach $124.9 billion in 2022-23, while international tourism consumption rose by $17.7 billion to $23.6 billion in chain volume terms. Therefore, the expansion of the tourism industry is driving the growth of the hospitality market.

Major companies operating in the hospitality market are increasingly focusing on the introduction of customization features to maintain and strengthen their market position. Customization features allow customers to tailor products, services, or systems according to their individual preferences and needs, enhancing satisfaction and engagement. For instance, in July 2023, HotelPort, a US-based software company, launched hospitality software development and platform integration services designed to support hotels of all sizes in improving operational efficiency, streamlining workflows, and enhancing guest experiences. By integrating existing hotel systems, HotelPort’s platform enables more unified operations, simplifying processes such as room bookings, check-in and check-out, and access to services. These improvements help create a smoother guest journey while also supporting revenue growth through improved online visibility and a more efficient booking process.

In October 2024, SAMHI Hotels, an India-based hospitality investment company, acquired Innmar Tourism and Hotels Private Limited for an undisclosed amount. Through this acquisition, SAMHI Hotels aims to expand its portfolio and reinforce its presence in the Indian hospitality market by integrating Innmar Tourism and Hotels Private Limited’s assets and expertise. This move is intended to enhance operational capabilities and extend market reach in an increasingly competitive hospitality landscape. Innmar Tourism and Hotels Private Limited is an India-based company providing hotel and hospitality services.

Major companies operating in the hospitality market are Compass Group Holdings plc, Starbucks Corporation, Sodexo SA, Marriott International Inc., Aramark Corporation, Four Seasons Hotels and Resorts Limited, Darden Restaurants Inc., Yum China Holdings Inc., Hilton Worldwide Holdings Inc., Chipotle Mexican Grill Inc., InterContinental Hotel Group plc, The Ritz-Carlton Hotel Company LLC, Mandarin Oriental Hotel Group Ltd., Radisson Hotel Group AB, Extended Stay America Inc., Rosewood Hotel Group LLC, La Quinta Inns & Suites Holdings Inc., Apple Leisure Group LLC, Evolve Vacation Rental Network Inc., Shangri-La Hotels and Resorts Ltd., American Cruise Lines Inc., Ennismore Lifestyle Group Limited, Red Lion Hotels Corporation.

Asia-Pacific was the largest region in the hospitality market in 2025. North America was the second largest region in the hospitality market. The regions covered in the hospitality market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hospitality market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The hospitality market includes revenues earned by entities by providing accommodation and food services such as lodging and/or preparing meals, snacks, and beverages for immediate consumption. The market covers both accommodation and food services because the two activities are often combined at the same establishment. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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