Lodging Construction and Renovation Market Report 2026

The lodging construction and renovation market size has grown rapidly in recent years. It will grow from $653.86 billion in 2025 to $720.33 billion in 2026 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to rising hotel construction activity, increasing refurbishment of aging lodging properties, growing focus on interior upgrades, expansion of specialty accommodations, rising adoption of sustainable building materials.

The lodging construction and renovation market size is expected to see strong growth in the next few years. It will grow to $1.04 trillion in 2030 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to increasing use of modular and prefabricated construction, adoption of advanced construction technologies, growth of energy-efficient MEP installations, expansion of AI-assisted project management, rising demand for connected building systems. Major trends in the forecast period include adoption of modular and prefabricated construction techniques, implementation of smart hotel management systems, integration of energy-efficient construction practices, expansion of connected building materials monitoring, deployment of AI-assisted interior design and fit-out solutions.

The rise in travel and tourism is expected to drive the growth of the lodging construction and renovation market going forward. Travel and tourism involve activities and services related to people visiting destinations for leisure, business, or cultural experiences. The increase in travel and tourism is fueled by rising disposable income, allowing more individuals to spend on vacations and leisure activities. Lodging construction and renovation support this growth by offering modern, comfortable, and sustainable accommodations. These improvements enhance guest experiences through upgraded facilities and innovative designs, boosting the appeal and development of travel destinations. For example, in 2025, according to UN Tourism, a Spain-based specialized agency for tourism, nearly 690 million tourists traveled abroad between January and June 2025, an increase of about 33 million compared to the same period in 2024. Therefore, the rise in travel and tourism is fueling the growth of the lodging construction and renovation market.

Key players in the lodging construction and renovation market are focusing on developing technologically advanced solutions, such as building automation systems, to improve energy efficiency, streamline operational management, and enhance guest comfort. A building automation system is a technology framework that automates and integrates a building’s functions, including heating, ventilation, air conditioning, lighting, and security, to ensure efficient management and improved occupant comfort. For instance, in February 2025, Delta Electronics Inc., a Taiwan-based electronics company, launched its Delta Intelligent Building Technologies (DIBT) platform to integrate smart automation, energy management, and IoT solutions for better building efficiency and sustainability. The platform unites Delta's expertise in architectural lighting, building automation, and indoor air quality to create smart, energy-efficient, and sustainable buildings. It offers tailored solutions to optimize energy usage, enhance occupant comfort, improve security, and allow for real-time monitoring and control. DIBT helps businesses achieve operational excellence and sustainability goals through scalable, integrated smart building technologies.

In September 2025, Ameribrands LLC, a U.S.-based holding company, acquired Genesis Hotel Services for an undisclosed amount. This acquisition enables Ameribrands to expand its national hospitality renovation capabilities, delivering fast, consistent, and large-scale renovation projects. By providing multi-site customers with a single-source partner, Ameribrands aims to ensure speed, scale, and uniformity across all projects. Genesis Hotel Services is a U.S.-based renovation company specializing in lodging construction and renovation services.

Major companies operating in the lodging construction and renovation market are Skanska USA, Whiting-Turner Contracting Company, STO Building Group, DPR Construction, Gilbane Building Company, Suffolk Construction Company, Inc., Manhattan Construction, R.D. Olson Construction, Inc., IDC Construction, Inc., W.E. O'Neil Construction, The Beam Team, Inc., Steelman Partners, Salisbury Moore Construction, Inc., Lippe Construction Services, Inc., Case & Associates Construction, Inc., Crystal Hospitality, Inc., Greython Construction, Hillways Construction, Vöcker Hospitality GmbH, Buildiyo.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the lodging construction and renovation market by raising costs for imported structural materials, building envelope components, interior finish materials, and mechanical, electrical, and plumbing equipment used in hotel construction and renovation. Full-service, limited-service, and specialty hotels in regions such as Asia-Pacific, Europe, and North America are most affected due to dependence on imported construction materials. However, tariffs are driving local material sourcing, regional construction partnerships, and adoption of sustainable and modular construction methods, enhancing supply chain resilience and project efficiency.

The lodging construction and renovation market research report is one of a series of new reports that provides lodging construction and renovation market statistics, including lodging construction and renovation industry global market size, regional shares, competitors with a lodging construction and renovation market share, detailed lodging construction and renovation market segments, market trends and opportunities, and any further data you may need to thrive in the lodging construction and renovation industry. This lodging construction and renovation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Lodging construction and renovation involve the development of new hotels and lodging facilities as well as the improvement or refurbishment of existing properties. It includes activities such as structural construction, interior finishing, and the installation of mechanical and electrical systems to improve functionality, safety, and the overall guest experience.

The primary types of lodging construction and renovation include new hotel construction, hotel renovation and refurbishment, hotel expansions and additions, and conversion and adaptive reuse. New hotel construction focuses on creating entirely new hotel properties from the ground up, encompassing structural, architectural, and interior components. This sector employs various construction approaches such as traditional methods, modular and prefabricated construction, advanced building technologies, and sustainable construction practices. The material categories include structural materials, building envelope materials, interior finishing materials, and mechanical, electrical, and plumbing (MEP) materials and equipment. It is applied across full-service hotels, limited-service hotels, specialty hotels, and alternative accommodations.North America was the largest region in the lodging construction and renovation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in lodging construction and renovation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the lodging construction and renovation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The lodging construction and renovation market includes revenues earned by entities through maintenance and repair services, interior design and fit-out services, repairs and preventive maintenance services, project management and consultancy services, and health and safety compliance work 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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