25 Hotel Industry Statistics [2023]: Hotel Rate Trends And Market Data

Industry Statistics

Research Summary. The hotel industry not only reaches across the globe but also spans a wide cross-section of options ranging from budget motels to luxury resorts, making it an interesting field to study. Here are the key statistics on the hotel industry:

There are at least 187,000 hotels in the world as of 2023.
There are an estimated 17.5 million guestrooms in the world.
The global hospitality industry is worth over $4.548 trillion as of 2022.
There are about 1.6 million people employed by the U.S.’s accommodation industry.
The global travel and tourism industry was worth $4.671 trillion in 2020, down from its $9.17 trillion value in 2019.
The average U.S. hotel occupancy rate is 64.2% as of February 2023.

For further analysis, we broke down the data in the following ways:
Industry | Employment | Trends and Projections
1.6 million Americans are employed by the accommodation industry

Hotel Industry Statistics by Consumer Preferences

78% of millennials would rather spend their money on experiences than on things.

This is similar to the 77% of millennials who say some of their best memories were made at events and 79% who say that going to live events together helps them feel closer to the friends and family they attend with.
Hotels with a significant number of high-quality photos on their websites see a 15% increase in conversion rates.

This is compared to hotels that use few and/or low-quality photos. Including good photos of hotel rooms and amenities helps travelers know what they’re getting into and better imagine themselves there.

Now that this is almost a standard practice, hotels that don’t include enough high-quality photos will see that travelers are less likely to book on their sites.
TripAdvisor shared that the number of photos a hotel has on its TripAdvisor profile has the most impact on traveler engagement with the listing.

More specifically, properties with at least one photo see a 138% increase in engagement and are 225% more likely to receive a booking inquiry, and those with over 100 photos see a 151% increase in engagement and are 283% more likely to receive a booking inquiry.

The total number of reviews is still the second-most impactful on traveler engagement, followed by management responses posted in the last year and the number of reviews provided in the past year.
Europe has the highest hotel occupancy rate of any region in the world.

As of 2019, European hotels have an occupancy rate of 72.2%, meaning an average of 72.2% of all hotel rooms are occupied.

In the same year, Asia Pacific had an occupancy rate of 69.3%, the Americas had a rate of 65.6%, and the Middle East and Africa had a combined rate of 64.3%.

US Hotel Industry Statistics

There are 90,562 hotel and motel businesses in the U.S.

This number is a 0.4% increase from 2021, which is on trend with the average annual growth rate of 0.4% that this industry has seen from 2017 to 2022.
There are approximately 5.29 million hotel rooms in the U.S.

15.4% of these are considered to be in the upscale segment, and 21.4% are in the upper midscale segment.
The U.S. hotel and motel industry is worth $177.6 billion.

This industry is predicted to grow by 33.6% throughout 2022 as it continues to recover from the COVID-19 pandemic, although it’s seen an average annual decline of 2.4% from 2017 to 2022.
The U.S. tourism industry was valued at $545.11 billion in 2020.

In 2019, the industry was worth closer to $1.2 trillion. The drastic drop in value was due to the COVID-19 pandemic causing individuals and businesses to cancel travel plans. The industry is expected to begin to grow again, however, and was forecasted to reach $772.48 billion in 2021.
In 2020, U.S. hotels had an average occupancy rate of 44%.

This means that an average of 44% of U.S. hotel rooms were occupied throughout 2020. Because of the COVID-19 pandemic, this rate was 33.3% lower than it was in 2019.

Hotel Industry Statistics by Employment

The U.S.’s accommodation industry employs about 1.6 million people.

The industry has an unemployment rate of 8%, which is twice as high as the national unemployment rate of 4%.

In Q1 2019, there were 1.352 million gross job gains in the U.S. leisure and hospitality sector.

Here are data points for each quarter from Q1 2019 through Q2 2021.

Quarter and Year	Gross Job Gains
Q2 2021	1.725 million
Q1 2021	1.723 million
Q4 2020	1.447 million
Q3 2020	2.535 million
Q2 2020	656,000
Q1 2020	1.124 million
Q4 2019	1.406 million
Q3 2019	1.336 million
Q2 2019	1.353 million
Q1 2019	1.352 million

In Q1 of 2019, there were 1.22 million gross job losses in the U.S. leisure and hospitality industry.

Here are the numbers for each quarter following that through Q2 2021:

Quarter and Year	Gross Job Losses
Q2 2021	984,000
Q1 2021	983,000
Q4 2020	1.329 million
Q3 2020	1.024 million
Q2 2020	6.331 million
Q4 2019	1.22 million
Q3 2019	1.405 million
Q2 2019	1.404 million
Q1 2019	1.22 million

The average employee of the U.S. leisure and hospitality industry makes $19.44 an hour.

Employees in this sector work 25.8 hours a week on average.
32% of U.S. leisure and hospitality industry employees have access to employer-sponsored health care.

43% get paid vacation from their employers, and 50% receive paid sick leave.

This statistic only counts those who work in the private industry and not those who work for government organizations.

Hotel Industry Trends and Projections

In 2019, the global hotels and resorts market was worth over $1.5 trillion.

This was just before the COVID-19 pandemic caused widespread lockdowns in 2020, and it was the pinnacle of seven years of nearly continuous growth.

In 2012, the global hotels and resorts market was worth around $9 million, and it steadily hovered just under $1 trillion until it broke that barrier in 2016. From there, it continued to grow until reaching 2019’s $1.5 trillion value.
From 2021 to 2025, the global hotel and travel accommodation industry is projected to have a CAGR of 7%.

This will result in a market value of $1.05 trillion in 2025. In 2020, the global hotel and travel accommodation market was worth $673.02 billion, and it grew to $801.9 billion in 2021, which is a CAGR of 19.1%.

This massive growth was due to the initial recovery of the industry after the COVID-19 pandemic shut down travel around the world in 2020.
In 2020, travel and tourism contributed $4.671 trillion to the global GDP.

While this is a significant amount of money, it is also a significant decrease from the $9.17 trillion it contributed in 2019. This is a result of the 2020 COVID-19 lockdowns that significantly reduced the amount of travel in the world.
From 2008 to 2018, the number of hotels around the world has increased by nearly 14,300.

In 2018, the total number of hotels was 184,299.

Hotel Industry Statistics FAQ

What is the growth rate of the hotel industry?

The growth rate of the hotel industry is 19.1%. This was the CAGR from 2020 to 2021 as the global hotel industry reopened after the COVID-19 pandemic lockdowns began to lift.

This is an unusually high growth rate, but the industry is expected to continue to grow from 2021 to 2025, just at a slower CAGR of 7%.
What are the four segments of the hospitality industry?

The four segments of the hospitality industry are Food and Beverage, Accommodation (also referred to as Lodging), Travel and Tourism, and Entertainment and Recreation.

You don’t necessarily have to be traveling to enjoy the hospitality industry’s offerings. The Food and Beverage sector, for example, includes restaurants, bowling alley food, and concessions stands, not just hotel restaurants. As a result, this is the largest sector of the hospitality industry.

The Accommodation or Lodging sector includes hotels, campgrounds, rental homes, and any other facility that gives people a place to sleep. This includes resorts, motels, and hostels all alike.

The Travel and Tourism sector covers the actual act of traveling via airlines, cruise ships, trains, taxis, and more. Whether you’re traveling for leisure or business, chances are you’ll utilize at least one of travel and tourism’s offerings on a trip.

The last sector of the hospitality industry is Entertainment and Recreation. This sector is made up of all the activities that people do just for the enjoyment of it. These include:
- Swimming pools
- Zoos
- Museums
- Spectator sports
- Movie theaters
- Participatory sports (e.g., scuba diving, golf, tennis)
- Amusement parks
Just as with the Food and Beverage sector, you don’t have to travel to take advantage of Entertainment and Recreation’s offerings.
How many American hospitality workers were fired or laid off in 2020?

10.65 million American hospitality workers were fired or laid off in 2020. While About 1.2 to 1.4 million people in this industry lost their jobs each quarter throughout 2019, 1.695 found themselves unemployed in Q1 2020, and a whopping 6.331 million were suddenly unemployed in Q2 2020 due to the COVID-19 pandemic lockdowns.

This number went back down to just over one million in Q3 2020 and 1.329 million in Q4 2020. In 2021, it was even lower as the industry began to reopen, with 983,000 fired or laid off in Q1 2021 and 984,000 in Q2.
Is the hotel industry recovering?

Yes, the hotel industry is recovering. The global hotel and travel accommodation industry is expected to have a CAGR of 7% from 2021 to 2025.

This doesn’t mean that certain hotel businesses won’t continue to struggle or may need to close, but the overall industry is on an upward swing.
What are the latest trends in the hotel industry?

The latest trends in the hotel industry are high-tech, green facilities, alternative accommodation options, and incorporating experiences into hotel stays.

Hotels are beginning to implement more and more smart technology, whether it’s a keyless entry or turning on the AC with an app. In addition, many hotels are looking for ways to reduce their carbon footprint by conserving water, reducing single-use plastics, and earning their LEED certifications.

Another hotel industry trend is that travelers (especially millennials) are looking more toward alternative accommodation options, whether that’s a rental house or villa, a mobile home, or hotels with a personality that reflect the local culture rather than standardized branding.

Hotels are responding to this by focusing on opening boutique hotels and facilities that bring unique elements to their decor, amenities, and even floor plans.

In addition to this, 78% of Millennials want to spend their money on experiences rather than things, and hotels are starting to cater to that by offering experiential packages as well as accommodations.

Conclusion

The hotel industry is a major player in the global and U.S. economies. In 2022, the global hotel industry was worth more than $4.548 trillion and is projected to see a CAGR of 7% from 2021 to 2025. In the U.S. alone, the hotel and motel industry is worth $177.6 billion, and the tourism industry is worth $545.11 billion.

Lockdowns in response to the COVID-19 pandemic in 2020 significantly impacted this industry. The worldwide travel and tourism industry contributed $4.671 trillion to the global GDP in 2020, which is just over half the amount it contributed in 2019 ($9.17 trillion).

In the U.S., over seven million leisure and hospitality industry employees lost their jobs during the first six months of 2020, compared to the just over five million that found themselves unemployed throughout all of 2019. Hotel occupancy rates also dropped by 33.3% from 2019 to 2020.

References

Eventbrite. “Millennials: Fueling the Experience Economy.” Accessed on February 16, 2022.
Medium. “The Importance of Imagery on Hotel Websites.” Accessed on February 16, 2022.
Frederic Gonzalo. “Photos Impact Bookings More Than Reviews.” Accessed on February 16, 2022.
Statista. “Occupancy Rate of the Hotel Industry Worldwide From 2008 to 2019, by Region.” Accessed on February 16, 2022.
IBISWorld. “Hotels & Motels in the U.S. – Number of Businesses 2005-2027.” Accessed on February 16, 2022.
Statista. “Number of Hotel Rooms in the United States From 2017 to 2020, by Chain Scale Segment.” Accessed on February 16, 2022.
IBISWorld. “Hotels & Motels in the U.S. – Market Size 2005-2027.” Accessed on February 16, 2022.
Statista. “Market Size of the Tourism Sector in the United States From 2011 to 2020, with a Forecast for 2021.” Accessed on February 16, 2022.
Statista. “Occupancy Rate of Hotel Industry in the United States From 2001 to 2020.” Accessed on February 16, 2022.
U.S. Bureau of Labor Statistics. “Accommodation: NAICS 721.” Accessed on February 16, 2022.
U.S. Bureau of Labor Statistics. “Economic News Release: Employment Situation Summary.” Accessed on February 16, 2022.
U.S. Bureau of Labor Statistics. “Databases, Tables & Calculators by Subject: Gross Job Gains for the Leisure and Hospitality Sector in the U.S. (Rounded to the Nearest Thousands.)” Accessed on February 16, 2022.
U.S. Bureau of Labor Statistics. “Databases, Tables & Calculators by Subject: Gross Job Losses for the Leisure and Hospitality Sector in the U.S. (Rounded to the Nearest Thousands).” Accessed on February 16, 2022.
U.S. Bureau of Labor Statistics. “Leisure and Hospitality.” Accessed on February 16, 2022.
IBISWorld. “Global Hotels & Resorts – Market Size 2005-2027.” Accessed on February 16, 2022.
Globe Newswire. “Global Hotel and Other Travel Accommodation Market Report 2021: Market is Expected to Grow From $673.02 Billion in 2020 to $801.9 Billion in 2021 – Long-term Forecast to 2025 & 2030.” Accessed on February 16, 2022.
Statista. “Total Contribution of Travel and Tourism to Gross Domestic Product (GDP) Worldwide From 2006 to 2020.” Accessed on February 16, 2022.
Statista. “Total Number of Hotels Worldwide From 2008 to 2018.” Accessed on February 16, 2022.
Hospitality Net. “What Are the 4 Segments of the Hospitality Industry.” Accessed on February 16, 2022.
Hotel Tech Report. “100 Hotel Trends You Need To Watch in 2022 & Beyond.” Accessed on February 16, 2022.

Industry Statistics

Author

Abby McCain

Abby is a writer who is passionate about the power of story. Whether it’s communicating complicated topics in a clear way or helping readers connect with another person or place from the comfort of their couch. Abby attended Oral Roberts University in Tulsa, Oklahoma, where she earned a degree in writing with concentrations in journalism and business.

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