State of the Hospitality Market Report 2026

The state of the hospitality market size has grown rapidly in recent years. It will grow from $4.58 trillion in 2025 to $5.29 trillion in 2026 at a compound annual growth rate (CAGR) of 15.5%. The growth in the historic period can be attributed to growth of global tourism, expansion of hotel chains, rising disposable income, urbanization trends, increased business travel.

The state of the hospitality market size is expected to see rapid growth in the next few years. It will grow to $9.36 trillion in 2030 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period can be attributed to technology driven service innovation, growth of experiential travel demand, focus on sustainability initiatives, expansion of luxury and boutique hospitality, adoption of advanced analytics. Major trends in the forecast period include digital transformation of guest services, personalized guest experience models, growth of sustainable hospitality practices, expansion of experiential and luxury offerings, integration of data driven decision making.

The growth of travel and tourism is anticipated to accelerate the expansion of the state of the hospitality market in the coming years. Travel and tourism encompass activities in which individuals journey to and stay in locations outside their usual surroundings for leisure, business, or other purposes. Demand for tourism is driven by people’s interest in leisure, cultural exploration, adventure, and relaxation, along with business and educational opportunities. Travel and tourism support the growth and advancement of the hospitality market by increasing the need for accommodation, dining, and related services. This rise in tourist activity stimulates economic growth by generating employment and revenue for local businesses and governments. For example, in January 2025, according to UN Tourism (United Nations World Tourism Organization), a Spain-based specialized UN agency, an estimated 1.4 billion international tourists traveled globally in 2024, representing an 11% increase compared to 2023 and reaching nearly 99% of pre-pandemic levels. Hence, the expansion of travel and tourism is contributing to the growth of the state of the hospitality market.

Major companies operating in the state of the hospitality market are focusing on developing advanced technological solutions, including dynamic pricing and revenue management software, to improve operational efficiency, maximize revenue, and deliver personalized guest experiences. Dynamic pricing and revenue management software applies algorithms and data analytics to modify prices in real time based on market conditions, demand patterns, and competitive dynamics. For instance, in February 2023, PriceLabs, a US-based company that integrates with Airbnb, Vrbo, and over 100 property management systems (PMSs) and offers data-driven pricing recommendations, introduced a Spanish-language version of its dynamic pricing and revenue management software to improve accessibility for Spanish-speaking users. This localized version supports hoteliers by offering a user-friendly interface and clearer understanding of the platform, enabling more effective revenue management and improved listing performance. It incorporates real-time market insights and automated rate optimization, allowing users to make informed pricing decisions. The updated version is designed to enhance productivity for property managers and hosts across Spanish-speaking regions, helping them optimize profitability.

In April 2024, Hilton, a US-based global operator of full-service hotels and resorts, acquired Sydell Group for an undisclosed sum. This acquisition is intended to broaden Hilton’s presence in the luxury lifestyle hotel segment through the purchase of a majority stake in the NoMad brand. The move enables Hilton to utilize its commercial capabilities to develop up to 100 NoMad properties worldwide, strengthening its portfolio with distinctive, high-end hospitality experiences while preserving NoMad’s unique brand identity and independent property ownership model. Sydell Group is a US-based hospitality company recognized for developing and managing innovative lifestyle hotel brands.

Major companies operating in the state of the hospitality market are Rosewood Hotel Group Ltd., Marriott International Inc., Four Seasons Hotels Limited, Hilton Worldwide Holdings Inc., Jumeirah International LLC, Hyatt Hotels Corporation, Radisson Hospitality Inc., Accor SA, InterContinental Hotels Group plc (IHG), Kerzner International Holdings Limited, Choice Hotels International Inc., Wyndham Hotels & Resorts Inc., Shangri-La Asia Limited, The Hongkong and Shanghai Hotels Limited, The Ritz-Carlton Hotel Company L.L.C., ONYX Hospitality Group, Belmond Ltd., Mandarin Oriental Hotel Group International Limited, Banyan Tree Holdings Limited, Oberoi Hotels & Resorts, The Indian Hotels Company Limited (Taj Hotels), Langham Hospitality Group Limited, Minor International PCL, Dusit Thani Public Company Limited, Aman Group Sarl.

North America was the largest region in the state of the hospitality market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the state of 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 state of the hospitality market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The state of the hospitality market includes revenues earned by entities by consulting services, financial advisory, regulatory and compliance support and real estate services. 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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