Hotels Market to Hit USD 2,551 Bn by 2035, Growing at 5.0% CAGR: Global Outlook 2035 – TMR

Global hotels market to grow from US$ 1,500.6 Bn in 2024 to US$ 2,551 Bn by 2035, expanding at a CAGR of 5.0%, driven by travel and tech adoption

WILMINGTON, DE, UNITED STATES, October 1, 2025 /EINPresswire.com/ -- The global hotels market has long been a cornerstone of the travel and tourism sector, serving as the critical infrastructure for both leisure and business travelers worldwide. In 2024, the global hotels market was valued at US$ 1,500.6 billion and is projected to expand at a CAGR of 5.0% between 2025 and 2035, reaching US$ 2,551.0 billion by the end of the forecast period. Analysts note that this growth is fueled by multiple converging factors, including rising disposable incomes, increased international travel, and the adoption of advanced digital technologies that enhance guest experience and operational efficiency. The market’s dynamism is further reinforced by evolving customer expectations for personalization, convenience, and sustainability, all of which are driving innovation among key operators.

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Market Size and Growth

The hotels market demonstrates robust expansion potential driven by both structural and cyclical factors. Travel demand is rising steadily across all segments, fueled by an expanding middle class in emerging markets and a global resurgence of business travel after the pandemic-induced downturn. According to market intelligence, the increasing ease of travel, facilitated by digital platforms for booking and exploration, has contributed significantly to market growth. Furthermore, infrastructure investments, such as airport expansions and government incentives for tourism, have created favorable conditions for new hotel developments, particularly in regions poised for economic and tourist growth. As a result, the industry is not only growing in revenue terms but also experiencing diversification in the types of accommodations and services offered.

Market Segmentation

The global hotels market is broadly segmented by type, customer profile, and service offerings. Among these, business and commercial hotels dominate the market due to their strategic locations in central business districts, downtown areas, and near major airports. These properties primarily cater to corporate clientele, offering predictable occupancy rates supported by meetings, incentives, conferences, and exhibitions (MICE) bookings. The stability provided by corporate travel, loyalty programs, and long-term contracts ensures that business hotels maintain higher Revenue Per Available Room (RevPAR) and Average Daily Rate (ADR) compared to purely leisure-focused properties. Boutique and lifestyle hotels, meanwhile, are increasingly differentiating themselves through unique experiences, gastronomic offerings, and advanced technological integration to cater to younger, experience-driven travelers.

Regional Analysis

North America, particularly the United States, has consistently emerged as the leading market for hotels globally. This region benefits from a combination of strong domestic travel demand, robust corporate travel recovery, and heavy investment in branded hotel development. Advanced distribution systems, sophisticated revenue management analytics, and institutional ownership models contribute to a highly organized market structure. Moreover, franchise pipelines and investor activity have enabled rapid expansion of major hotel brands, while labor market investments support scalable operations to meet growing demand. Emerging markets, including Asia-Pacific and parts of Latin America, are also showing strong growth trajectories driven by rising middle-class incomes, urbanization, and expanding tourism infrastructure.

Market Drivers and Challenges

The hotels market is being shaped by several key drivers. Digital innovation is one of the most transformative forces, enabling operational efficiency, personalized guest experiences, and higher revenue through data-driven strategies. Contactless technologies, mobile check-in/out, AI-driven personalization, and integrated CRM systems are all helping hotels meet evolving customer expectations while optimizing pricing and occupancy. For example, in 2024, more than 50% of hotel bookings were completed via mobile devices, underscoring the growing role of technology in influencing travel decisions.

The resurgence of corporate travel is another critical growth driver. Business travelers typically spend more per stay, book premium accommodations, and utilize meeting facilities and food & beverage services, stabilizing mid-week occupancy levels. Recovery in MICE-related travel further contributes to steady demand, while hotels offering flexible workspaces, meeting venues, and loyalty programs are best positioned to capture corporate clientele.

Market Trends

Several trends are redefining the hotels market. First, lifestyle and boutique hotels are attracting younger, tech-savvy travelers by offering immersive experiences, gourmet dining, and integration with wellness or local cultural activities. Second, the integration of AI and analytics enables hotels to optimize dynamic pricing, upsell ancillary services, and personalize guest experiences, significantly impacting RevPAR and ADR. Third, sustainable practices and eco-friendly operations are becoming central to brand identity, appealing to environmentally conscious travelers and supporting compliance with global sustainability standards. Finally, digital partnerships with online travel agencies (OTAs) and loyalty ecosystems are streamlining distribution, enhancing direct bookings, and improving guest retention, further transforming operational strategy.

Competitive Landscape

The global hotels market is highly competitive, with key players including Accor, Marriott International, Hyatt Hotels, Hilton Worldwide, InterContinental Hotels Group, Best Western, Choice Hotels, Wyndham, Radisson, and Indian Hotels Company Limited, among others. These companies employ strategies such as acquisitions, franchise expansions, brand development, and digital partnerships to maintain market leadership. Lifestyle and boutique chains are carving out niche markets, while global conglomerates leverage loyalty programs, corporate accounts, and analytics-driven revenue management to enhance profitability. For example, Marriott’s acquisition of CitizenM in 2025 highlights strategic alignment with corporate accounts, enhancing predictable occupancy and ADR yield.

Future Outlook

Looking ahead to 2035, the global hotels market is poised for continued expansion, underpinned by rising travel demand, urbanization, and ongoing technological innovation. Operators who prioritize guest experience personalization, sustainability, and operational efficiency are expected to capture the highest growth opportunities. Emerging markets will offer significant upside potential, while developed regions like North America and Europe will continue to benefit from sophisticated revenue management and corporate travel recovery. Innovation in digital booking, loyalty programs, and analytics-driven decision-making will further strengthen competitive differentiation and market penetration.

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