Market Size of US Hospitality Real Estate Sector Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 5.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Hospitality Real Estate Market Analysis
The United States hospitality real estate sector market is USD 28.1 billion in the current year and is anticipated to register a CAGR of over 5.5% during the forecast period.
- The coronavirus pandemic caused a decrease in hotel occupancy rates in the United States. As a result, the business sales of the hotel sector saw a drop. The occupancy rates dropped by more than 50% in the US, potentially resulting in a loss of nearly USD 925 billion in business sales in 2020.
- Even though the US and the hotel industry are facing some economic challenges that can be expected to continue into the near future, corporate and personal balance sheets are reasonably strong, the US banking system is healthy, and the planning of new hotel projects continues. Hotel investors and developers are still eager to move forward on projects and are more mindful when approaching a deal. 428 new projects accounting for 47,034 rooms were announced in the pipeline in the second quarter of 2022. This number more than doubled year over year compared to the second quarter of 2021, when 202 new hotel hotels with 25,653 rooms were recorded. Also of note, in Q2 2022, there were 1,889 hotels with 237,420 rooms in the renovation or conversion pipeline in the US, with project and room conversions reaching an all-time high. It increased 66% year over year by projects and 35% year over year by rooms.
- In the recently released Q2 2022 United States Construction Pipeline Trend Report, the franchise company leading the United States hotel construction pipeline is Marriott International, with 1,355 projects/167,034 rooms, up 4% by projects year-over-year (YOY). Next is Hilton Worldwide, with 1,312 projects/147,780 rooms, an 8% YOY increase, and InterContinental Hotels Group (IHG), with 789 projects/79,701 rooms, up 2% by projects YOY. Current construction projects with these three franchise companies comprise 66% and 64% of US construction pipeline rooms.
- Marriott International comprises the most projects under construction and is scheduled to start within the next 12 months, with 249 projects/33,398 rooms and 653 projects/80,395 rooms, respectively. Hilton Worldwide contains the most projects in the early planning stage of the pipeline, with 725 projects/78,879 rooms. These record-high project and room totals for Hilton account for 32% of projects in the early planning stage.
