US Hospitality Market Size & Share Analysis - Growth Trends and Forecast (2027 - 2032)

Market Overview

US Hospitality Market Snapshot & Metrics Overview

Study Period	2020 - 2032
Forecast Data Period	2027 - 2032
Base Year Market Size (2026)	USD 247.80 Billion
Market Size (2027)	USD 258.40 Billion
Market Size (2032)	USD 313.70 Billion
Growth Rate (2027 - 2032)	3.95 %
Market Concentration	Medium
Major Players* Marriott International Wyndham Hotels & Resorts Hilton Worldwide Holdings Choice Hotels International InterContinental Hotels Group (IHG)	*Disclaimer: Major Players sorted in no particular order

• Argentina
• Austria
• Brazil
• Canada
• China
• Croatia
• Egypt
• France
• Germany
• Hong Kong
• India
• Italy
• Japan
• Malaysia
• Maldives
• Mexico
• Morocco
• Netherlands
• Romania
• Singapore
• South Africa
• Spain
• Sri Lanka
• Sweden
• Switzerland
• Thailand
• Turkey
• United Arab Emirates
• United Kingdom
• Vietnam

Market Trends and Insights

Strong Domestic Travel Demand

Domestic travel provides a broad customer base for accommodation and the services sold around a visit. US domestic person-trips reached 2.4 billion in 2025, up 1.5% year over year.^[1] That expanding trip pool creates additional occasions for hospitality establishments to sell rooms, meals and related services, with the revenue opportunity depending on the visit. An overnight guest can support a different service mix from a day visitor, making the establishment's offer important to how much demand it captures. Restaurants and event venues can consequently benefit from additional travel occasions even when the visit does not produce a hotel booking.

Digitalization and Online Booking

Digital booking makes the point of reservation a central part of the hotel's commercial offer. In 2025, more than 55% of US hotel reservations were made online. At that scale, a hotel's ability to present a bookable stay digitally can influence whether traveler interest becomes a reservation. Both a hotel's own booking interface and an intermediary can serve that function, although moving an existing booking between them does not itself add demand. Because voice and property-direct reservations declined as brand.com and OTA bookings rose, a hotel without online booking is outside the channels handling most 2025 reservations, tying digital presentation to the demand it can capture.

Short-Term Rentals and Hybrid Models

Hybrid distribution creates an additional route to guests for hotels that can compete alongside residential accommodation. In its 2026 Summer Release, Airbnb added thousands of third-party boutique and independent hotels to its platform across more than 20 destinations worldwide, expanding its presence in the global hospitality market, including New York. For participating hotels, appearing within this mixed accommodation offer can widen consideration without requiring a change in property ownership or operating model. The commercial opportunity lies in reaching travelers who might otherwise compare only residential options within that platform. Independent hotels can therefore use hybrid distribution to compete for the same trip while preserving the hotel-service proposition that distinguishes their stay.

Experience-Driven Travel

A specific experience can supply a reason to travel that accommodation alone does not provide. In KPMG's 2026 US summer travel survey, 24% of respondents said a desire for a specific experience made them more likely to travel. Separately, sightseeing involved 77.8% of the 34.3 million overseas visitors to the United States in 2025. For hospitality operators near attractions, these findings support positioning the stay around access to the experience, with meals or guest services complementing the visit. The resulting commercial opening is an accommodation proposition tied to the purpose of travel, where relevance to the itinerary can matter as much as the room itself.

Elevated Labor Costs & Shortages in Gateway Markets

Labor availability constrains the ability to turn additional guest demand into profitable service revenue. In the American Hotel & Lodging Association's 2026 national owner and operator survey, 65% listed labor costs among the financial pressures cited most often. Workforce shortages were a financial pressure for 42%, while more than half reported somewhat or severely understaffed properties. For hotels considering additional food, event or guest services, those combined pressures raise the risk that incremental sales require staffing they cannot economically secure. Understaffing can therefore constrain the range of services sold even when customers would pay for them, leaving operators to protect core lodging services before expanding labor-intensive offers.

Rising Insurance & Climate-Risk Premiums for Coastal Properties

Insurance weighs on hotel economics because it is a largely fixed, contractual cost that management can do little to change. US hotel insurance costs declined 4.0% in 2025 but remained double the premiums owners paid in 2019. Coastal hotel properties experienced slower property-insurance market improvement than newer, well-maintained assets through the first half of 2026. That uneven relief means the national decline does not describe the insurance conditions facing every exposed coastal property. For coastal owners, slower relief leaves a largely fixed charge against room and service income.

*Our forecasts treat driver/restraint impacts as directional, not additive. The impact forecasts reflect baseline growth, mix effects, and variable interactions.

US Hospitality Market Segment Analysis

Independent hotels accounted for a 62.16% share of the US hospitality market size in 2026. Within this largest segment, an independent owner can shape accommodation, dining and guest services around a particular property's commercial proposition rather than treating affiliation as the starting point. For an owner whose demand depends on a particular local identity, retaining that control can be more valuable than adopting a uniform brand proposition. The trade-off is that the owner must assemble the commercial and operating capabilities needed to sell that distinctive stay.

Chain hotels are the fastest-growing segment, with a forecast CAGR of 7.4% during 2027-2032. Choice Hotels International's US franchised system opened approximately 6,400 rooms in Q2 2026, 27% more than in Q2 2025. Its US franchise agreements awarded in Q2 2026 represented approximately 9,400 rooms for development by participating hotel owners. The openings add operating capacity, while the awards indicate developer commitments that can support subsequent expansion. This combination gives chain growth an immediate supply component and a development component, with the latter contributing sales only as the associated properties enter service.

Mid and upper-midscale hotels represented a 47.64% US hospitality market share in 2026. Lodging franchisor Choice Hotels International announced the opening of its 70th Clarion Pointe hotel in Milwaukee, Wisconsin, in March 2025, within its midscale portfolio.^[2] Fairfield Inn & Suites, an upper-midscale hotel brand, opened in York County, Nebraska, in April 2026. The 2 openings sit in different tiers of the combined class, one midscale in Wisconsin and one upper-midscale in Nebraska, so the additions broaden operating supply across both tiers.

Luxury is the fastest-growing segment, with a forecast CAGR of 6.2% during 2027-2032. JLL reported that US luxury-property revenue per available room increased 3% in 2025 compared with 2024. For luxury hotel owners, improved revenue from available rooms can strengthen the case for long-term investment in the guest offer, provided its operating cost leaves sufficient income from the stay.

OTAs were the largest segment by booking channel, accounting for 37.72% of total hospitality spending in 2026. SiteMinder ranked Expedia Group first among the top 12 US hotel booking channels in 2025, its first return to that position since 2021. That channel-specific prominence illustrates why an owner must consider an intermediary's ability to bring the property into a traveler's booking decision. In the same ranking, hotel websites for direct bookings placed third behind Expedia Group and Booking.com, so owners compete for guests inside OTA listings and on their own sites at the same time.

Direct digital is the fastest-growing segment, with a forecast CAGR of 7.9% during 2027-2032. In April 2026, LODGING contributor Mark Lomanno forecast gains in brand.com reservation share during 2026, supported by loyalty bookings through hotel brand websites. For participating hotels, that mechanism connects a direct reservation with an established brand relationship, giving the channel a distinct basis for repeat engagement. The forecast distribution mix gives hotels a greater role for direct digital relationships alongside OTA reach, while spending through wholesale and traditional agents declines.

Geography Analysis

West US Hospitality Market

The West accounted for a 29.44% share of the US hospitality market size in 2026. California sold 1.2 million additional hotel room nights in 2025, an increase of 0.8% compared with 2024. California, the No. 1 US tourism destination, added those nights while room demand fell 0.5% across the country in 2025, so the state's lodging volume ran against the national trend.

Northeast US Hospitality Market

The Northeast is the fastest-growing region, with a forecast CAGR of 7.85% during 2027-2032. Boston-area hotels recorded 77.3% year-end occupancy and revenue per available room of USD 233.5 in 2025, compared with 77.2% and USD 232.7, respectively, in 2024. The near-flat occupancy and revenue per available room describe a stable, high-occupancy base in Boston. For these hotels, growth depends on rate and sales per guest as well as on filling additional room nights.

In the Southeast, Tennessee's 2025 visitors over-indexed on shopping and dining relative to the US norm, particularly at locally owned businesses and unique or local dining establishments. In the Midwest, Milwaukee County's expanded Baird Center completed its first full operating year in 2025, providing capacity for larger conventions, sporting events and meetings. In the Southwest, La Cantera Resort & Spa in San Antonio opened as Signia by Hilton's first Texas hotel in October 2025, with more than 131,000 square feet of flexible meeting space. At the conversion and opening, Ohana Real Estate Investors owned the resort, and Hilton managed it. Meeting-led properties can combine accommodation and venue services, while dining-oriented establishments can capture visitor spending beyond the overnight guest.

Regulatory Framework and Outlook

Selected jurisdictions are compared from the perspective of a hotel operator advertising lodging prices to consumers. Federal and California rules make mandatory-fee disclosure part of how the stay is presented for sale, giving price-display design a direct compliance role. The practical challenge is to preserve a clear total price across the commercial offer while distinguishing charges that the relevant framework permits to be disclosed separately.

At the federal level, Medium reflects a defined disclosure burden that preserves freedom to set fees, with government and optional charges eligible for separate treatment under the rule. California also rates Medium because consumer hotel prices must include mandatory charges, while optional or later-contingent charges are treated separately. The federal No change direction reflects the completed rulemaking and its May 2025 effective transition. California's No change direction reflects continuity of the hotel price-disclosure duty alongside the separate restaurant-fee carveout, which does not extend to hotels.

Value Chain Stages

The comparison follows property ownership, brand affiliation and hotel management as distinct activities supporting guest-service sales. Apple Hospitality REIT owned 217 hotels across 37 states and the District of Columbia at year-end 2025, earning hotel revenue from room, food-and-beverage and related sales. Property revenue supports the asset, while franchise and management contracts allocate part of the economics to companies supplying brands, commercial systems and operating services.

Hilton reported global franchise and licensing fees of USD 2.78 billion and total management fees of USD 689 million for 2025. These separate revenue streams make an owner's return sensitive to whether the brand and manager contribute enough to the property's guest-service income to justify their contractual claims. Franchise and licensing fees were about 4 times management fees in Hilton's global 2025 results, making brand and channel licensing the larger of these 2 fee-based value pools.

Key Opportunities for Market Participants

The comparison evaluates college-focused hotels, apartment-style accommodation and independent-hotel affiliation as alternative development opportunities for US owners. Their commercial appeal depends on matching a property to a defined lodging proposition rather than assuming every asset benefits from the same brand arrangement. The central decision is whether affiliation can improve the property's route to guests enough to justify the operating changes it requires.

Independent-hotel collection affiliation offers the clearest near-term opening because Hilton reported more than 60 Outset Collection hotels in various development stages across the United States in May 2026. That reported pipeline gives owners a more concrete development signal than the June college-brand announcement or the January expectation of additional multifamily franchise agreements. Selective affiliation can therefore build on a reported development pipeline while preserving the guest proposition that distinguishes the independent property.