65+ Hotel Industry Statistics & Trends 2023 - Latest Data (2024)

Explore Hotel Industry Statistics & Trends including Average Occupancy, Rates, Global Hotel Industry Trends & More!

The hotel industry suffered hugely during the 2020 pandemic, losing a whopping $21 billion in revenue by May 2020 alone. More than 670,000 hotel industry operation jobs and nearly 4 million hospitality jobs were lost and occupancy rates were at an all-time low of 24.5%. A few years on and the industry is recovering, however not to pre-pandemic rates just yet.

Read on to find out everything you need to know about hotel industry trends and how the pandemic changed the travel and business travel industries, impacting hotel occupancy rates for good.

The onset of the COVID-19 pandemic brought hotel occupancy to a historic low of 24.5% in April
2020.

Seven out of ten hotel rooms were empty across the US.

The industry has lost more than $21 billion in revenue by May 2020.

Annual occupancy in the United States fell to roughly 44% for the full year.

In London, 2020 saw an average occupancy of 37%, meanwhile, 2021 saw a slight growth in occupancy at 46.1%.

This shows a significant decline when compared to 2019's occupancy rate of 83%.

The hotel occupancy rate in the United Kingdom was 81% in September 2022.

Average U.S. hotel occupancy is projected to reach 63.8% in 2023 up from 43.9% in 2020.

More than 670,000 hotel industry operation jobs and nearly 4 million hospitality jobs were lost in 2020 due to the pandemic.

At least 2 in 10 hotel employees who were working before the pandemic have still not returned to work.

When selecting a hotel, enhanced cleaning and hygiene practices rank as guests’ number two
priority, behind price.

There are at least 187,000 hotels in the world as of 2023.

There are an estimated 17.5 million guestrooms in the world.

The global hospitality industry is worth over $4.548 trillion as of 2022 andis projected to see a CAGR of 7% from 2021 to 2025.

The hotel industry was devastated by the 2020 pandemic, with low levels of international visitors as tourism demand dropped to all-time lows along with business travel coming to a halt.

In 2023 the U.S. hotel occupancy has started to recover, projected to reach 63.8% up from 43.9% in 2020. However, it'snot expected to make a full recovery until 2024 after being devastated by the coronavirus pandemic.

Sources: Forbes, Zippia, Hotel Tech Report, AHLA, US News

There are at least 187,000 hotels in the world as of 2023.

The industry lost more than $21 billion in revenue by May 2020 due to COVID-19.

Hotels are expected to generate$46.71 billionin state and local tax revenue in 2023, up from $41.11 billion in 2019.

The market size, measured by revenue, of the Global Hotels & Resorts industry is $1.5tr in 2023.

The market size of the Global Hotels & Resorts industry is expected to increase 12.3% in 2023.

The market size of the Global Hotels & Resorts industry has grown 1.1% per year on average between 2018 and 2023.

Las Vegas, Nevadatakes the top spot on the list of cities worldwide with the most hotel rooms, with over 150,000 hotel rooms.

First World Hotel Malaysia is the biggest hotel in the world with 7,351 rooms.

Macau dethroned London this year as the city with the most Five-Star hotels in the world.

Luxury hotel statistics show there areover 4,400 4 and 5-star hotelsaround the world.

The leading group in the world is theWyndham Hotel Group with over 9157 properties.

The industry is expected to generate more than$46.71 billionin state and local tax revenue in 2023 in the US and worldwide there are over 187,000 hotels.

Las Vegas has the top spot for the most hotel rooms with over 150,000and New York comes in second with over 115,000. New York also has the highest number of clean hotel rooms in the US.

Due to the pandemic, the industry was hit losing$21 billion in revenue by May 2020. However, the industry is recovering well and should be back to pre-pandemic levels by 2024.

Many are choosing to travel post-pandemic to make up for the time they lost during lockdown.

Sources: Ibis World,Price of Travel, Forbes, Five Star Alliance, Credit Donkey, Statista, Hotel Chantelle, AHLA

Annual occupancy in the United States fell to roughly 44% for the full year during the COVID-19 pandemic.

In the US, More than 670,000 hotel industry operation jobs and nearly 4 million hospitality jobs were lost in 2020 due to the pandemic.

Average U.S. hotel occupancy is projected to reach 63.8% in 2023 up from 43.9% in 2020 -just shy of 2019’s level(65.9%).

There are 166,272 Hotels & Motels businesses in the US as of 2023, an increase of 7.1% from 2022.

The U.S. hotel industry is projected to achieve 1.3 billion occupied room nights in 2023.

The pandemic nearly halved annual room revenue for U.S. hotels, from $170.35 billion in 2019 to $86.01 billion in 2020.

Room revenue bounced back to $142.92 billion in 2021 before soaring to $189.07 billion in 2022.

Hotel room revenue is projected to reach $197.48 billion in 2023.

The most expensive hotel room in American and now the world is The Palms Casino Resort in Las Vegas, taking the concept of luxe travel to a whole different level. Its new Damien-Hirst-designed Empathy Suite costs $100,000 a night.

The Ritz Carlton was rated the best luxury hotel in the U.S. and Canada.

There are 150,000 rooms in Las Vegas and the oldest hotel is the Golden Gate which opened in 1906.

Hotels were one of the first industries affected by the pandemic after travel was forced to a halt inearly 2020. Ithit the US hotel industry hard, halving hotel room revenue and contributing to huge unemployment figures in the U.S. However, in 2023 the industry is bouncing back with a projected 1.3 billion occupied room nights and $197.48 billion in revenue.

The US is full of stunning places to stay, no matter what you’re looking for. If you’re not short of cash, then The Palms Casino Resort in Las Vegas is home to the most expensive room in the world, The Empathy Suite, named by Time Magazine as one of the ‘world’s greatest places.’

Sources: Ibis World,AHLA,Statista, Aventri, Credit Donkey, CNBC, Bustle

Visitor numbers to Dubai decreased by almost 67%: from 16.7 million in 2019 to 5.5 million visitors in 2020.

In April 2020, Dubai's occupancy rate dropped to less than 25%.

However,Dubai managed to record the second-highest occupancy rate globally in 2020 (54.7%) behind China.

Dubai bounced back from the pandemic, welcoming14.36m tourists in 2022.

Dubai saw a 97% surge in international overnight visitorsin 2022.

Dubai’s tourism sector contributed $29.4bn to the economy in 2022.

According to Zoom Property Insights, the UAE hospitality sector will see 48,000 new rooms by 2030, aiming for an expansion of 25%.

Dubai's hotel inventory at the end of December 2022 comprised 146,496 rooms at 804 hotel establishments, compared to 126,120 rooms available at the end of December 2019 across 741 hotels.

With an additional 6,900 jobs forecast for 2023, the sector (in the UAE) is expected to employ 758,000 workers.

The Dubai hotel industry has thrived post-COVID-19 and has been labelled asone of the world’s top three cities for travel and business. In 2022 Dubai welcomed around 14.36 million tourists and saw a 97% surge in overnight visitors.

Contributing factors to Dubai's performance is Dubai'sreputation for excellent customer service along with impeccable hygiene and safety standards.Dubai made huge efforts to provide safe travel in 2020 andthey were awarded theSafe Travels stamp in July 2020 bythe World Travel& Tourism Council, demonstrating that it was one of the world's safest destinations.

The Dubai hospitality sector is set to boom in 2023 as hotel occupancy passes pre-Covid levels. With the country aiming for a 25% expansion and an additional 6,900 jobs forecast for 2023, the sector is due to keep thriving.

Sources: KPMG,Arabian Business,News AU, SOEG Jobs, Knight Frank

For 2023, Globally, average daily rates (ADRs) were up 3.4% annually by the end of Q1,

Occupancy climbed by 17.6%.

Global revenue per available room (RevPAR) is 21.6% ahead of 2022.

The global hotel industry has recovered to pre-pandemic levels as more than 60% of properties recovered RevPAR.

Japan had the highest ADR gain (+81.2%) with China, Indonesia, and Germany seeing growth of more than 20% YoY.

In the UK, ADR rose just 1.7% to £164. Coupled with a 13.2% YoY increase in occupancy, RevPAR is currently up 15.1% year on year.

In the USA ADR is at $296 but occupancy has risen by 12% YoY, RevPAR is running 11.9% higher than last year.

Asia is seeing big improvements, with ADR up 18.6% at $126,occupancy has increased 56% YoY. RevPAR is currently 85% ahead of 2022.

In the Middle East, ADR is only up 2.4% to $172, withoccupancy up 25.3% YoY, sending RevPAR 28.3% higher than last year.

ADR in the Middle Easthasrisen by 2.4% to $172. Occupancy is up 25.3% YoY, sending RevPAR 28.3% higher than last year.

ADRhas fallen in real terms inEurope, with nightly rates only up 5% to $170. However, occupancy has increasedby 17.4% YoY, RevPAR is up 23.2% from last year.

Mexico was the only country in the top 10 to post a RevPAR decrease (-8.9%).

Sources:Travel Daily Media,STR,Credit Donkey, STR, Aventri

During the pandemic more than 670,000 hotel industry operation jobs and nearly 4 million hospitality jobs were lost.

In 2023, the hospitality industry contributes $4.7 trillion to the global economy every year.

It's forecast to grow to $5.8 trillion U.S. dollars in 2027 at a compound annual growth rate (CAGR) of 5.5%.

By the end of 2023, the 5% contribution to global GDP will be recovered.

American hotels support 8.3 million American jobs, which is equivalent to nearly 1 in 25 U.S. jobs.

The average age of someone who works in the hotel industry is35.

The U.S. hospitality industry was projected to add 1.9 million jobs from 2021 to 2023, accounting for 23% of all projected new jobs added to the US economy.

The hotel and hospitality industry contributes hugely to the global economy and should have recovered from the effects of the pandemic by the end of 2023.

One in 25 people in the US work in this industry and the average age of employees in this industry is much younger than most, at 35. Back-of-house employees work on average 34 hours a week, 12 hours more than those working front-of-house, where roles tend to be part-time.

This market is continuing to grow and is expected to contribute around $5.8 trillion to the global economy by 2027.

Sources: Hospitality On,Recruitics,RestaurantOnline,Vox, CheckFront, Statista, Treksoft

Pre-pandemic, 57% of businesses had travel policies allowing employees to add leisure time to their business trips.

Global business travel dropped 53.8% in 2020, generating just $661 billion in revenue — down from $1.43 trillion in 2019.

89% of peopleplan to add personal vacation time to their business travel in 2022.

In 2021, 37% of corporate travelers from North America extended their business trips to do some sightseeing.

U.S. business travelers take over 405 million long-haul business trips annually.

Estimated that employees are adding vacation time to around 60% of these trips (243 million).

In the UK, 45%intended to add a leisure element to business trips in the future.

In 2022 American Airlines revealed that almost half of its $13.46 billion revenue was generated from bleisure itineraries.

Business travel is important for the economy,$12.50 additional revenue is generated in the economy for every $1 spent on business travel.

79% of bleisure travelers state they volunteer more frequently for business trips where they can extend and enjoy some vacation time.

Bleisure travel is recovering slowly post-pandemic,and theglobal market for business travel is showing signs of recovery, projected to reach US$829.5 billion.

Virtual meetings took priority during the pandemic, and this trend has continued in some industries. Certain businesses have reduced travel budgets, but some industries such as sales, still rely on face-to-face meetings to build relationships.

Bleisure is still important to those that do partake in business travel, and 79% even say they've volunteered for business trips so they can tack on some leisure time.

Sources: Travel Pulse,Computer World,The Economist, Credit Donkey, Aventri, Travel Perk, Skift

78% of global travelers intend to stay in a sustainable property at least once in 2023.

50% of consumers would be willing to pay more for transportation, activities, and lodging if it was more sustainable.

Consumers are willing to pay 38% more to make their travels more sustainable.

The global sustainable tourism industry isvalued at $181.1 billion.

81% of travelers worldwide believe that sustainable travel is important.

61% of travelers are interested in learning more about ecotourism.

46% understand how to actually arrange a sustainable trip.

64% are willing to consider less-popular destinations to reduce adverse environmental impact.

30% of travellersare concerned about over-tourism.

38% are conscious of threats to wildlife and naturalhabitats.

46% worried about creating excess waste.

Tourism puts enormous stress on local land use and can lead to soil erosion, increased pollution, natural habitat loss, and more pressure on endangered species.

In 2023 more and more travellers are looking for sustainable options, with ethical considerations now key factors in travel decision-making. However, travellers struggle with knowing where to start when planning a sustainable trip.

When asked about who is accountable for making positive environmental changes regarding travel, 26% of people believe it lies with the government, and 23% said tourism authorities.

In addition to this, travellers would like to see:

• 35% believe that air conditioners and heaters should be controlled by keycards or energy-saving sensors.
• 32% think that accommodation providers should offer information on local ecosystems, heritage, culture, and visitor etiquette.
• 27% want to be able to opt out of daily room cleaning to reduce water usage.
• 27% would only like to use reusable plates and cutlery for meals and room service.

Along with this, hotels will be taking their own steps to become more sustainable byutilising green technologies such as solar power, renewable energy sources and water conservation systems.

Sources: Responsible Travel, Statista, Balance Holidays, Country Living, Aventri