U.S. Hotels Market Size To Reach $395.69 Billion By 2030

April 2025 | Report Format: Electronic (PDF)

U.S. Hotels Market Growth & Trends

The U.S. hotels market size is expected to reach USD 395.69 billion by 2030 and is projected to grow at a CAGR of 7.1% from 2025 to 2030, according to a new report by Grand View Research, Inc. The market has witnessed an uptick in corporate and group travel, with businesses increasingly prioritizing corporate retreats, industry conferences, and incentive trips. This surge in business travel is bolstering demand for mid-to-high-end hotels, contributing significantly to higher occupancy rates. A notable trend is the resurgence of corporate and group travel, with companies increasingly organizing retreats and conferences to foster team cohesion and client relationships. This shift has led to a 6.8% year-over-year increase in revenue per available room during the first eight months of 2024. ?

Alongside the corporate resurgence, international tourism is playing a crucial role in the recovery. The U.S. has seen a marked increase in visitors from India, with Indian tourists flocking to American cities in record numbers. International tourism, particularly from emerging markets such as India, is also contributing to this growth. According to the U.S. National Travel and Tourism Office (NTTO), in the first ten months of 2024, nearly 1.9 million Indian tourists visited the U.S., marking a 48% increase from 2019. Hotels are adapting by offering amenities catering to these travelers, such as chai and samosas, enhancing their appeal to this burgeoning market.

Technology and sustainability are also key drivers of change. Hotels are adopting greener practices, from energy-efficient systems to eco-friendly amenities, to meet the rising demand for sustainability. At the same time, the integration of advanced technologies such as AI for personalized guest experiences and operational efficiency is becoming standard practice.

In summary, the U.S. hotels market is thriving amid shifting dynamics. Growth is being driven by both business and leisure travel, with a notable boost from international visitors. Innovation in technology and sustainability will continue to shape the future of the industry.Beyond tourism and business travel, the U.S. hotels market is increasingly shaped by sustainability and technological innovation. Hotels are embracing eco-friendly initiatives, from energy-efficient systems to waste reduction programs, as consumers become more conscio U.S. of their environmental impact. Sustainability is now a major selling point for travelers. Meanwhile, advancements in technology, such as the use of artificial intelligence (AI) for personalized experiences, smart room controls, and streamlined check-ins, are enhancing both guest satisfaction and operational efficiency. These innovations are making hotels more competitive in an increasingly tech-savvy market.

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U.S. Hotels Market Report Highlights

The U.S. hotels market has experienced a robust recovery post-COVID, with demand for travel skyrocketing as restrictions eased. This resurgence is driven by pent-up consumer demand, increased leisure travel, and corporate travel's return. Hotel occupancy rates have significantly risen, which is driving the market growth in the country.
Luxury hotels accounted for a majority of the overall hotel market in 2024. As the U.S. economy has seen growth in certain sectors, more travelers are willing to splurge on premium experiences, making luxury hotels more appealing. In addition, many people are choosing to stay in upscale properties for longer periods, contributing to the rise in demand for upscale stays.
The U.S. hotels market has embraced technological innovations to improve guest experiences, streamline operations, and enhance revenue management. Post-pandemic, many hotels have incorporated contactless check-ins, room service ordering via apps, and digital keys. Smart hotel rooms equipped with IoT (Internet of Things) devices allow guests to control lighting, temperature, and entertainment systems from their mobile devices.
Short-term rentals (STRs), especially platforms like Airbnb, have had a profound impact on the U.S. hotels market, introducing both competition and new opportunities. As the sharing economy grew, Airbnb and other rental platforms captured significant market share, especially in cities where hotel inventory was limited or expensive. This shift was initially accelerated by the COVID-19 pandemic, as travelers looked for alternatives to crowded hotels, preferring the privacy and flexibility offered by short-term rentals.