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Hotels & Motels in the US Industry Data and Analysis
The need for hotels and motels depends heavily on domestic and international tourism levels, making these businesses susceptible to the overall economic environment. After the pandemic declines, rising inflation has forced some consumers to reduce spending on leisure activities, slowing revenue growth over the past two years. Nonetheless, the release of pent-up demand for travel has supported industry growth. In early 2025, the industry is expected to endure several significant setbacks from the newly imposed tariffs. Falling domestic consumer sentiment and slowing interest from international visitors, especially from Canada and China, are expected to hurt demand for US hotels and motels. Overall, the Hotels and Motels industry revenue is estimated to rise at a CAGR of 15.2% to $286.5 billion over the five years through 2025, including 0.5% growth in 2025. New tariffs have increased operational costs for hoteliers, causing industry profit to drop to 10.8% in 2025.
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What's included in this industry analysis
IBISWorld's research coverage on the Hotels & Motels industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released October 2025.
About this industry
What's this industry report about?
The Hotels & Motels industry in the United States operates under the NAICS industry code 72111. Operators in this industry provide short-term lodging in hotels, motor hotels (motels) and resort hotels. Operators may also offer food and beverage services, recreational services, conference room and convention services, laundry services, parking and other services. Related terms covered in the Hotels & Motels industry in the United States include revenue per available room (revpar), room rate and computer reservation systems (crs).
What's included in this industry?
Products and services covered in Hotels & Motels industry in the United States include Guest room rentals from properties with under 75 rooms, Guest room rentals from properties with between 75 and 299 rooms and Guest room rentals from properties with between 300 and 500 rooms.
What companies are included in this industry?
Companies covered in the Hotels & Motels industry in the United States include Marriott International Inc., Hilton Worldwide Holdings Inc. and Best Western International, Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Hotels & Motels industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Hotels & Motels industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Hotels & Motels industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Hotels & Motels industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Hotels & Motels industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Hotels & Motels industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Hotels & Motels industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Hotels & Motels industry in the United States.
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Frequently Asked Questions
What is the market size of the Hotels & Motels industry in the United States in 2026?
The market size of the Hotels & Motels industry in the United States is $286.5bn in 2026.
How many businesses are there in the Hotels & Motels industry in the United States in 2025?
There are 46,091 businesses in the Hotels & Motels industry in the United States, which has grown at a CAGR of 1.2 % between 2020 and 2025.
How may import tariffs affect the Hotels & Motels industry in the United States?
The Hotels & Motels industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Hotels & Motels industry in the United States?
The Hotels & Motels industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Hotels & Motels industry in the United States grown or declined over the past 5 years?
The market size of the Hotels & Motels industry in the United States has been growing at a CAGR of 15.2 % between 2020 and 2025.
What is the forecast growth of the Hotels & Motels industry in the United States over the next 5 years?
Over the next five years, the Hotels & Motels industry in the United States is expected to grow.
What are the biggest companies in the Hotels & Motels industry in the United States?
The biggest companies operating in the Hotels & Motels industry in the United States are Marriott International Inc., Hilton Worldwide Holdings Inc. and Best Western International, Inc.
What does the Hotels & Motels industry in the United States include?
Operating short-term hotels and Operating short-term motor hotels are part of the Hotels & Motels industry in the United States.
Which companies have the highest market share in the Hotels & Motels industry in the United States?
The company holding the most market share in the Hotels & Motels industry in the United States is Marriott International Inc..
How competitive is the Hotels & Motels industry in the United States?
The level of competition is high and increasing in the Hotels & Motels industry in the United States.
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