United States Hotel Market Report by Chain Scale, Distribution Channel, Ownership & Management Model, End-User, States and Company Analysis, 2025-2033

The United States hotel market is poised to record stable growth from US$ 269.68 billion in 2025 to US$ 422.10 billion in 2033. It is expected to achieve a CAGR of 5.76% during 2025-2033, propelled by robust domestic travel, growing demand for experience-oriented stays, and continued hotel development. Improved digital services, changing expectations of the guests, and sustained leisure and business travel in all hotel tiers across the country are likely to spur long-term growth.

US Hotel Market Outlook

A hotel is any type of facility that offers lodging, accommodation, and other hospitality services to business guests, tourists, and travelers. Most hotels usually offer private rooms, housekeeping, services at the front desk, restaurants, fitness centers, meeting rooms, and recreational facilities. Depending on their classification, hotels may also range from luxury resorts offering premium services to midscale brands, boutique properties, extended-stay suites, and economy motels. The fundamental idea is to offer comfort, convenience, and safety to guests who stay for a short period or an extended period. Many hotels provide accommodations and amenities for conferences, events, and corporate travel, thus being part of the broader infrastructure related to tourism and business.

Hotels are very popular in the United States due to both the travel culture and a wide range of destinations within the country. Millions of Americans travel on leisure, business, holidays, and road trips, thus keeping a consistent demand for different types of accommodations in cities, at coastlines, national parks, and places of entertainment. The U.S. also sees the inflow of a considerable number of international visitors, further boosting hotel occupancies. There is a wide variety of hotel brands, from budget-friendly chains to luxury global names, to suit every travel need and budget. Adding to this, new trends such as experience-based traveling, hybrid work, and weekend getaways continue to drive up hotel usage and boost their importance in the travel habits and lifestyles of Americans.

Growth Drivers in the United States Hotel Market

Recovery and Growth in Domestic Leisure Travel

Domestic leisure travel has emerged as a sustained growth engine for U.S. hotels. Since the disruption, Americans have demonstrated a greater penchant for short breaks, road trips, weekend city breaks, and nature-based escapes. The resulting dispersal of demand across primary metros, secondary cities, and resort destinations is a key driver of occupancy higher and shoulder seasons longer. Leisure travelers tend to be more flexible with their timing, which can help hotels flatten demand curves and capture incremental revenue during off-peak periods. This trend in experiential travel has also driven an interest in local culture, wellness, and curated activities at properties, from packages and partnerships with local operators through upgraded amenities on-site dining and outdoor experiences. All in all, increased domestic travel reduces any reliance on international arrivals, making revenue streams resilient to global shocks. Oct 2025, Brand USA, the destination marketing organisation for the United States, has announced America the Beautiful, a global tourism marketing campaign and platform that is its most ambitious effort to date. During the seventh edition of Brand USA Travel Week U.K. & Europe, a connectivity event that brings together U.S. destinations with the best international buyers and media from 20 countries, the campaign was launched.

Corporate & Group Travel Rebound

Business travel and group bookings - conferences, trade shows, and corporate meetings - remain pivotal to the hotel revenue mix. As offices reopen and face-to-face interaction restarts, hotels see renewed weekday occupancy of higher-rated corporate rates and reopened group sales pipelines. Major cities and convention towns are starting to see renewed conference calendars, while suburban and airport hotels are capturing corporate transient traffic. Business travelers tend to spend more on F&B and ancillary services, and they favor full-service properties with meeting facilities, driving higher RevPAR. Hotels respond with flexible meeting packages, hybrid event capabilities, and enhanced technology such as AV and high-bandwidth internet to support virtual elements. Oct 2025, Host agency Fora Travel has launched a division for group travel aimed at supporting corporate offsite meetings and events, incentive trips and destination weddings, among other group types. The division will offer advisors tools, training, and support, according to Fora's general manager of groups.

Technology, Distribution, and Loyalty Optimization

The adoption of technology and smarter ways of distribution are materially improving hotel revenue capture. Mobile check-in, digital keys, in-room automation, and CRM-driven personalization increase guest satisfaction and ancillary spend. Data-driven revenue management tools improve pricing agility and channel mix optimization, enabling properties to shift inventory between direct channels and third-party distributors for maximum yield. Loyalty programs and direct-booking incentives reduce reliance on costly intermediaries, increasing margin per booking. Meanwhile, improved online booking experiences, dynamic packaging, and targeted promotions better convert lookers to bookers. In 2024, the American Hotel & Lodging Association (AHLA) reported a record 33 strategic alliances across technology, media, sustainability, and guest experience domains. Of particular note among those partnerships is that with DIRECTV HOSPITALITY for tailored in-room entertainment solutions that can be scaled from large properties to boutiques.

Challenges in the United States Hotel Market

Labor Shortages and Increasing Wage Pressures

Labor supply and cost remain key concerns for U.S. hotels. The industry is very labor intensive, and housekeeping, F&B, front desk, maintenance, and event staff drive guest satisfaction. Ongoing challenges in both recruiting and retaining skilled employees-continuing to drive higher wages, increased benefits, and a greater reliance on overtime and agency labor-all inflate operating expenses. Staffing shortages compromise service quality, limit room turnover, and constrain F&B hours or menu offerings, further impacting guest experience and ancillary revenue. Hotels will have to commit to training, improving workplace culture, and technological automation like self-service kiosk check-in, mobile room controls, and housekeeping productivity tools to bridge gaps in the labor force. Automation requires significant capital with an upfront investment and, in most cases, cannot fully replace human interaction, especially in the premium tiers. The delicate balance between labor costs, service levels, and profitability remains an issue through all classes of hotels.

Increasing Operating Costs and Inflationary Pressures

Inflation and higher operating costs put pressure on hotel margins. Utilities, food & beverage inputs, linens, cleaning supplies, property maintenance, and insurance premiums have all risen, making for careful cost management and selective price increases. Passing higher costs on to guests risks demand erosion, especially in more price-sensitive markets. Renovation capital expenditures, increased investments in health and safety, and technology upgrades further stress cash flow. Smaller independent hotels and owner-operators may be particularly vulnerable given the limited scale economies. Operators need to optimize procurement, re-contract with suppliers, and pursue energy efficiency and sustainability measures that cut longer-term costs. Revenue management now needs to balance rate increases with occupancy protection increasingly. Together, these rising costs and constrained labor supply make margin preservation a continuing strategic focus.

United States Luxury Hotel Market

The luxury hotel market in the United States serves an affluent and experience-oriented traveler who demands superior service, upscale amenities, and unique experiences. Luxury properties encompass landmark urban hotels, high-end resort destinations, and boutique luxury brands commanding a premium rate through bespoke concierge services, fine dining, curated wellness programs, private transportation, and exclusive excursions. Customers demand perfect attention to detail, privacy, and personalization, which fuels strong ancillary revenues throughout food & beverage, spa, and event services. Although more expensive to operate, luxury hotels have become increasingly resilient during economic variability due to the fact that the affluent are less price-sensitive. Many locations are concentrated in gateway cities such as New York, Los Angeles, Miami, and renowned resort locations like Napa, Aspen, and Palm Beach. Developers and brands are focused on capturing an increasingly sophisticated clientele through signature design, art programs, and sustainability. Luxury hotels use loyal programs and private membership models to capture a repeat audience. Its focus on authenticity and experience-based programming further expands its market with global and domestic travelers seeking memorable, high-touch stays.

United States Upper Midscale Hotel Market

The upper midscale hotels serve as a vital linkage between economy and full-service segments, offering dependable comfort and practical amenities at accessible price points. The brands in this category stress dependable service, clean and well-designed rooms, complimentary breakfast, fitness centers, and limited meeting space. Since they blend strong value with efficient operations, the appeal for upper midscale properties is broad among families, business travelers on moderate budgets, and group bookings. Their broad geographic footprint also includes highway corridors, suburban pockets, and secondary cities that make them resilient to demand swings and appealing to franchise investors. Asset management typically centers around consistent brand standards, operational efficiency, and capital investment on a moderate scale to maintain competitiveness. Steady leisure and business travel benefits the segment, while it appeals to the cost-conscious corporate accounts and often times realizes very healthy occupancy levels, even as ADR growth may be considered moderate. With developers continuing to favor upper midscale in their search for stable returns, the category remains a backbone of the U.S. lodging supply.

United States Hotel Direct Booking Market

Direct booking-which is a reservation made through a hotel's website, app, or reservations center-remains the strategic focus for margin improvement and loyalty building among U.S. hotels. Overall, direct channels tend to yield higher net revenue per booking by avoiding third-party commissions while giving full control to the hotel when it comes to upsell opportunities, guest experience, and data capture. Hotels invest in user-friendly websites, mobile apps, and loyalty incentives such as rate guarantees, points bonuses, free Wi-Fi, or upgrades in order to convert direct traffic. Hotels power personalization tools and CRM integrations that allow them to serve targeted promotions and conduct remarketing activities against their past guests. Strong direct booking strategies also yield long-term customer lifetime value and make balancing distribution costs feasible. On the other side of the coin, visibility management on OTAs and metasearch does have its place for demand assurance through rate parity and inventory controls. Indeed, for many operators, growing share in the direct channel is a key objective in revenue optimization.

United States Hotel Online Travel Agencies Market

Online travel agencies-a category that includes major global platforms and metasearch engines-remain very strong distribution partners for U.S. hotels. This is due to the scale, reach, and customer acquisition they provide. OTAs are good at capturing leisure demand, last-minute bookers, and international guests. They offer broad visibility and marketing muscle for hotels. Their commission fees and promotion-driven business models do have a weakening effect on the margins of hotels, though. Properties increasingly adopt hybrid strategies, using OTAs to fill secondary channels while driving loyalty member bookings directly. Advanced channel and revenue management systems help hotels optimize OTA exposure without sacrificing profitability. Many properties also negotiate preferred placement, promotional windows, and bundled packaging on OTA platforms to increase conversion. Although costly, OTAs remain indispensable demand generators, and effective partnership strategies-balanced with direct-channel growth-are essential to ensuring occupancy and RevPAR maximization.

United States Franchised Hotel Market

Franchised hotels continue to dominate much of the United States lodging landscape, offering local owners a way to operate under established brands with proven distribution, operational systems, and loyalty programs. Franchising reduces development and marketing risks for individual owners while enabling brand consistency and economies of scale. Franchise models are prominent across upper midscale, midscale, and limited-service segments where standardized operations and predictable guest expectations are beneficial. Franchisors offer reservation systems, brand standards, training, and centralized purchasing that help drive occupancy and streamline operations. Franchise agreements also shift certain responsibilities such as marketing, brand standards, and technology to the franchisor, while owners manage day-to-day operations. This structure enables the rapid growth of networks and investor interest; however, owners must balance franchise fees, brand compliance costs, and capital expenditure mandates. For many markets, franchising remains the preferred development route, supporting nationwide distribution and consumer trust.

United States Owner-Operated Hotel Market

Independently owned and directly managed, owner-operated hotels represent a meaningful, diverse slice of the U.S. hospitality sector. Properties range from roadside motels and boutique urban inns to small full-service hotels and resort cottages. This can translate into highly personalized service, local authenticity, and nimble decision-making, outperforming larger chains in guest satisfaction for certain segments. Niche markets-heritage stays, local culinary experiences, and community-rooted hospitality-represent areas in which independents can compete well for traveler patronage seeking distinctive stays. Issues most often cited for many owner-operators include reduced marketing reach compared to branded competitors, lower purchasing power, and technology capability gaps. For many owner-operators, participation in soft brands, consortia, or third-party distribution partnerships provides access to reservations and marketing support with preservation of operational independence. For communities and leisure destinations nationwide, owner-operated hotels remain a crucial contributor to tourism diversity and local character.

United States Business Travelers Hotel Market

Business travelers are a high-value, reliable customer segment for U.S. hotels, and they have a preference for properties close to corporate offices, airports, and convention centers. Business travelers generally appreciate consistent high-speed internet access, well-appointed work areas within the guestroom, convenience food options, and streamlined processes for loyalty redemption. The degree of weekday occupancy and F&B revenue is highly correlated with corporate travel patterns, negotiated corporate rates, and group bookings. Corporate travel rebounded unevenly post-pandemic, where senior leadership and client-facing travel came back more quickly than middle-tier travel; however, hybrid work patterns and pent-up meeting demand continued to restore business travel volumes. Hotels targeting this customer segment invest in flexible meeting spaces, day-use offerings, co-working spaces, and efficient services that can appeal to the time-sensitive traveler. Winning corporate accounts and maintaining strong sales relationships with travel managers is critical to long-term revenue stability.

California Hotel Market

California's hotel market is one of the largest and most diverse in the United States, anchored by global gateway cities, world-class resort areas, and a broad array of leisure and business destinations. Major demand generators include tech hubs in San Jose/Silicon Valley; entertainment and film production in Los Angeles; financial and tourism centers in San Francisco; theme-park traffic in Anaheim; and coastal resort appeal across Santa Barbara and Laguna Beach. California's convention calendar, outdoor attractions such as Yosemite, Redwood, and Lake Tahoe, and wine regions like Napa Valley drive seasonal and year-round demand. Hotel product runs the gamut from ultra-luxury coastal resorts to urban lifestyle hotels and economy roadside motels, representing diversified supply. Visit California has officially launched its first-ever official domestic airline partnership, teaming up with United Airlines to increase the Golden State's profile as The Ultimate Playground. This multi-year agreement makes United the official domestic airline partner of Visit California, marking a strategic milestone for the organization while creating new opportunities to inspire high-value travelers to experience California's many diverse offerings. The campaign, which launched on April 7 and will run through May 2025, features each partner contributing $250,000 to a robust, integrated media program.

New York Hotel Market

New York has one of the most vibrant and high-profile hospitality landscapes globally, anchored by Manhattan's luxury hotels, boutique properties, and large-scale convention hotels. Demand is driven by international tourism, business travel, cultural institutions, Broadway, finance, and major events. New York hotels command premium ADRs due to strong demand density and limited supply in core neighborhoods. The market benefits from year-round visitation cycles-holiday shoppers, business conferences, fashion weeks, and cultural festivals-that sustain occupancy even in off-peak months. Developers and brands invest heavily in unique guest experiences, rooftop dining, and signature spas to differentiate in this crowded market. Undaunted by high operating costs and real estate constraints, New York's unmatched global appeal keeps it among the top-performing hotel markets in the U.S., with significant investor interest and ongoing product reinvention.

New Jersey Hotel Market

New Jersey is a complicated hotel market, with a mix of corporate travelers, airport traffic, regional leisure, and group business. Its proximity to New York City makes northern New Jersey a strong feeder market for both business and tourism, and the shore towns and boardwalk destinations drive seasonal leisure demand along the Jersey Shore. It contains a multitude of major transportation hubs, including Newark Liberty International Airport and extensive highway networks, which support a large inventory of airport-adjacent and highway-focused hotels. The pharmaceutical industry, logistics industries, and regional service industries drive weekday occupancy in business corridors. Conference and group business takes place in suburban conference centers and casinos in Atlantic City. Developers favor upper midscale and midscale product types to capture corporate transient and family leisure markets. Market dynamics require operators to balance seasonal spikes at leisure destinations with more stable corporate account management in suburban nodes.

United States Hotel Market Segmentation

Volume

• Number of Hotel
• Number of Rooms Available

Market

• Historical Market Trends
• Market Forecast

Chain Scale

• Luxury
• Upscale
• Upper Midscale
• Midscale
• Economy
• Independent

Distribution Channel

• Direct Booking (Brand.com)
• Online Travel Agencies (OTAs)
• Global Distribution Systems (GDS)
• Wholesale / Meta-Search / Other

Ownership & Management Model

• Franchised
• Managed
• Owner-Operated
• Lease

End-User

• Leisure Travelers
• Business Travelers
• Group & MICE
• Bleisure Travelers
• Long-Term Residential Guests

States

• California
• Texas
• New York
• Florida
• Illinois
• Pennsylvania
• Ohio
• Georgia
• New Jersey
• Washington
• North Carolina
• Massachusetts
• Virginia
• Michigan
• Maryland
• Colorado
• Tennessee
• Indiana
• Arizona
• Minnesota
• Wisconsin
• Missouri
• Connecticut
• South Carolina
• Oregon
• Louisiana
• Alabama
• Kentucky
• Rest of United States

All companies have been covered with 4 Viewpoints

• Overviews
• Key Person
• Recent Developments
• Revenue Analysis

Company Analysis:

• Marriott International
• Hilton Worldwide Holdings
• Wyndham Hotels & Resorts
• InterContinental Hotels Group (IHG)
• Choice Hotels International
• Hyatt Hotels Corporation
• Best Western Hotels & Resorts
• G6 Hospitality (Motel 6 / Studio 6)
• Extended Stay America
• Red Roof