Hotels Industry Overview: Valuation, Trends, and Insights

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Overview

Hoteliers play an essential part of the hospitality and tourism industries by offering accommodation services for travelers and guests. Hotels come in all shapes and sizes – from budget motels to five-star resorts – offering accommodation services to guests and providing accommodation services for travelers and guests. Travel agencies play an essential part in making travel more accessible and providing people with comfortable places to rest their head while away from home. Hotel industries are widely known to offer diverse amenities that meet different guests’ needs and preferences, from restaurants and bars, conference facilities and recreational activities to recreational offerings and recreational services. Hotel tourism also contributes significantly to local economies by creating jobs and generating revenues through tourism and related services, while creating revenue. Hoteliers strive to differentiate themselves through excellent customer service, innovative themes and unique offerings which makes this sector of global economies highly dynamic and ever-evolving.

Hotels provide travelers and guests with accommodation services. Here are a few key facts about them.

Types of Hotels: There is an assortment of hotel styles available today, ranging from budget hotels and luxurious resorts to boutique properties and resorts – each one catering to specific traveler preferences and different traveler demographics.

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Hotel Ratings: Hotels are often graded on a star system, where higher numbers indicate an enhanced level of service, amenities and luxury.

Hotel Amenities: Hotels offer many amenities for their guests to take advantage of including rooms, restaurants, bars, swimming pools, gyms, spa facilities, conference rooms and much more.

Booking Hotels: Booking hotels can now be accomplished in various ways, such as online travel agencies (OTAs), hotel websites and travel agents.

Check-In and Check-Out: As soon as you arrive at a hotel, the process for checking in involves providing identification documents, payment details and receiving room keys.

Room Types: Hotels provide various room types such as standard, suite and specialty rooms to cater to guests with various needs and preferences.

Hospitality Services: Hotels prioritize providing outstanding guest experiences through room cleaning, room service and concierge services that enhance guest experiences.

Safety and Security: Hotels typically employ various measures to ensure their guests’ wellbeing, such as key card access, surveillance cameras, and on-site security personnel.

Hotel Chains: Many hotels belong to larger hotel chains or brands with multiple locations worldwide – examples being Marriott, Hilton and IHG.

Before booking their stay at any hotel, many travelers read reviews written by past guests as a means of gathering an idea of quality and experience they should anticipate from this experience.

Editor’s Choice

There are over 187,000 hotels worldwide in 2023.
In 2022, the US saw an 8.3% increase in hotel and motel inventory to reach 132,228 properties.
Hotels of various types come in all shapes and sizes; upper upscale properties can have over 300 rooms while economy chain hotels usually feature between 75 to 200.
Hotel occupancy levels in the US reached 95% of their 2019 levels by 2022 and are projected to fully recover by 2025.
Las Vegas holds the highest total hotel room count in America at over 179,000 rooms.
In 2019, global hotel and resort industry market share reached its all-time peak of $1.52 trillion before declining due to COVID-19 implementation; it is anticipated to rebound back up to its previous position of around $1.21 trillion by 2023.
Hospitality industry revenue is expected to soar from $4.1 trillion in 2022 to more than $10 trillion by 2028.
Sole proprietor hotels in the US generate an average annual revenue of $94,464.
Hotel industry sales are projected to total $408.8 billion by 2023.
As of September 2022, hotels had an average daily rate of $154.32.

(Source : passport-photo.online)

US Hotel Industry Statistics:

There are currently an estimated 90,562 hotel and motel businesses operating within the US.

These businesses possess over 5.29 million hotel rooms, of which 15.4% fall into the upscale segment and 21.4% into upper midscale accommodation.
U.S. hotel and motel industry is valued at an impressive $177.6 billion.
By 2022, growth should increase by 33.6% due to COVID-19 pandemic effects.
U.S. tourism was valued at $545.11 billion in 2020 – an enormous decrease from 2019’s $1.2 trillion mark.
In 2020, U.S. hotels averaged an occupancy rate of 44%.

Hotel Industry Employment Trends by Type and Status.

U.S. accommodations employ approximately 1.6 million workers.
Industry unemployment stands at 8%– nearly twice the national rate of 4%.
Workforce gains and losses within the leisure and hospitality sector vary over time.

(Source : zippia)

Fun Facts about the Hotel Industry

Macau, China, has the most 5-star hotels with 22.
The First World Hotel in Malaysia boasts 7,351 guestrooms and is therefore considered the world’s largest hotel.
California, Texas and Florida boast the highest concentrations of hotels and motels.
87% of hotel guests have taken something from a room at least once.
Towels, soap dishes and tissue boxes are among the three top items stolen from hotels by an estimated 35% of guests.
72% of professionals plan to utilize hotels for work-related requirements by 2023 and beyond.
The Palazzo boasts more than 7,000 guest rooms and is considered to be one of the largest hotels in America.
Nishiyama Onsen Keiunkan has been operating continuously since 705, and thus stands as the oldest hotel worldwide.
El Convento Hotel dates back over three centuries in America.
Ellsworth Milton Statler established the inaugural American hotel chain in 1901 when he opened his flagship property, the Statler Hotel in Buffalo, NY.
Lover’s Deep Luxury Submarine Hotel holds the record as the world’s most costly accommodation with nightly rates reaching $175,000.
Gevora Hotel in Dubai stands as the tallest hotel worldwide at 1,169 ft with 75 floors.
As of June 2022, Miami hotel room prices averaged out at an average monthly cost of $304.
Hotel brands with websites featuring images with superior resolution see an average conversion rate increase of 15%.
Third-party booking services typically take 10-22% of hotels’ revenue as commission.

(Source : passport-photo.online)

Hotel Industry Statistics by Leading Hotel Brands Worldwide

Hilton holds the top most valued hotel brand globally at 12.04 billion US Dollars as of 2022.
Hyatt and Holiday Inn have the highest brand values globally at approximately $5.9 billion each, as measured by total asset valuations.
Hampton by Hilton stands as one of the world’s most valuable hotel brands at $3.922 billion; other significant hotel brands in 2022 included Marriott ($2.3 billion), DoubleTree ($2.11 billion), Shangri-La Hotels and Resorts ($1.91 billion), Intercontinental (1.45 billion), Embassy Suites (1.43 billion) and Crowne Plazas (1277 billion).

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Factors Affecting Accommodation Selections:

Location (41%), traveler needs (39%), and price (36%). These factors all play a factor in choosing accommodation options.
Recommendations from family or friends and room size also play a factor (31%).
Promotions have an influence over 21% of travelers’ hotel selection decisions.

Demographic Statistics

78% of millennials prefer spending their vacation money on experiences rather than material goods.
66% of millennials book their travel with smartphones.
44% of millennials prefer Airbnb-style rentals for business travel.
Rental properties are popular with 74% of millennials, 38% of Gen Xers, and 20% of baby boomers.

Hotel Star Ratings

1-Star⭐

1-Star hotels offer basic rooms, shared bathrooms, and self-served meals.

2-Star⭐⭐

2-Star hotels provide color television, basic room amenities, and on-site bar and restaurant.

3-Star⭐⭐⭐

3-Star hotels include gym facilities, meeting rooms, and multiple room options.

4-Star⭐⭐⭐⭐

4-Star hotels offer swimming pools, concierge services, and more.

5-Star⭐⭐⭐⭐⭐

5-Star hotels provide luxury rooms, advanced facilities, and much more.

7-Star ⭐⭐⭐⭐⭐⭐⭐

7-Star hotels offer all the above amenities and additional features like a spa and outdoor sports.

(Source : enterpriseappstoday.com)

Recent Developments

2021: Marriott International acquires debt-laden rival Starwood Hotels and Resorts for $13.6 billion, becoming the world’s leading hotel company.
2022: Hilton Worldwide acquires Waldorf Astoria Hotels & Resorts from Blackstone Group for $1.45 billion.
In 2023: Hyatt Hotels Corporation announces it has acquired Apple Tree Group for $1.3 billion, increasing their portfolio of luxurious properties.
In 2023: InterContinental Hotels Group (IHG) today unveiled plans to invest $1 billion across their global hotel portfolio between now and 2023, specifically on new technologies and renovation projects.
In 2023: Wyndham Hotels & Resorts’ global expansion strategy includes plans to open 2,000 hotels over five years in key global markets.

Conclusions:

Hotels play an essential part of hospitality and tourism sectors by providing accommodation services for travelers. Hotels come in all shapes and sizes to cater for varying preferences and budgets of guests and travelers. Hoteliers strive to set themselves apart by offering exceptional customer service, innovative themes and distinctive offerings. Thanks to its dynamic nature, hoteliers remain agile enough to meet travelers’ ever-evolving demands and meet them satisfactorily. Tourism-related services contribute greatly to local economies by creating jobs and generating revenues through tourism-related services. Hotels also play an essential role, offering travelers comforting stays whether for business or pleasure travel.

How many hotels are there worldwide in 2023?

In 2023, there are over 187,000 hotels worldwide.

What are the top factors influencing accommodation choices?

The top factors influencing accommodation choices include location (41%), traveler's needs (39%), and price (36%). Recommendations from family or friends and room size also play a role (31%), and deal promotions affect 21% of travelers' hotel choices.

What are some fun facts about the hotel industry?

Some fun facts about the hotel industry include the fact that Macau, China, has the most 5-star hotels (22), the world's largest hotel is the First World Hotel in Malaysia with 7,351 rooms, and the Gevora Hotel in Dubai is the tallest hotel globally (1,169 ft). Additionally, 72% of professionals plan to use hotels for work-related needs in 2023 and beyond, and the most expensive hotel in the world is Lover's Deep Luxury Submarine Hotel with a nightly rate of $175,000.

What are the key demographics related to hotel preferences?

Among millennials, 78% prefer spending money on experiences during vacations, 66% book trips using smartphones, and 44% prefer Airbnb-style rentals for business travel. Rental properties are popular among 74% of millennials, 38% of Gen Xers, and 20% of baby boomers.

How are hotels rated in terms of stars?

Hotels are typically rated on a star system, with 1-star hotels offering basic amenities and services, and 5-star hotels providing luxury and advanced facilities. It's worth noting that while 1 to 5-star ratings are common, the concept of 7-star hotels is rare and not officially recognized by hospitality industry standards.

What are the different types of hotels available to travelers?

Hotels come in various types, including budget hotels, luxury hotels, boutique hotels, resorts, and more, each offering different levels of service, amenities, and accommodations to cater to diverse traveler preferences and budgets.

How do hotel star ratings work, and what do they signify?

Hotel star ratings indicate the quality and level of service a hotel provides. A higher star rating generally suggests more luxurious amenities and services. For example, a 5-star hotel typically offers advanced facilities and superior services, while a 1-star hotel provides basic accommodations.

What amenities can I typically find in a hotel room?

Hotel rooms usually include standard amenities like a bed, bathroom, TV, and a desk. Higher-end hotels may offer additional amenities such as minibars, coffee makers, and high-speed internet access.

What are some of the factors that influence travelers' accommodation choices?

Travelers' accommodation choices are often influenced by factors such as location, traveler needs, and price. Recommendations from family or friends, room size, and promotions also play a role in decision-making.

ABOUT AUTHOR

by Kundan

Kundan Goyal possesses a wealth of experience in Digital Marketing, offering valuable insights to businesses of all sizes. He actively contributes to industry-specific PR, news outlets, and forums, shaping discussions and driving forward-thinking strategies. Outside of work, HE enjoys carrom and has a deep passion for news editing and research. His strength lies in helping companies make informed, strategic decisions and predicting future trends. With his dedication and innovative approach, he is a versatile professional who brings a unique blend of skills and expertise to the ever-evolving digital landscape, enabling businesses to thrive in this dynamic environment.