Hotels Market Size, Share & Industry Analysis, By Type (Economy/Budget, Midscale, and Luxury), By Application (Leisure and Professional), By Booking Mode (Online and Offline), and Regional Forecast, 2026-2034

The global hotels market size was valued at USD 2,080.57 billion in 2025. The market is projected to grow from USD 2,197.80 billion in 2026 to USD 3,931.42 billion by 2034, exhibiting a CAGR of 7.54% during the forecast period. 

Hotels are mainly considered as guest accommodations services and similar services for travelers. It consists of a range of accommodations, such as motels, hostels, resorts, and others. The increasing global travel activities, including business travel and leisure travel activities, along with rising consumer spending, are fostering the growth of the market. Furthermore, the expansion of online booking channels and the emergence of local tour providers and companies are further boosting the global market share in the short term.

Key players, such as Marriott International, Inc., Wyndham Hotel Group, LLC., and Hilton Worldwide Holdings Inc., and others are leveraging technological advancements, such as AI, data analytics, and ML, to track the demand pattern of the consumers, and provide loyalty program services accordingly. Moreover, the companies are constantly renovating their hotels, along with providing customized packagesand adopting merger and acquisition strategies, further driving the global market growth.

Market Dynamics

Market Drivers

Growth in Online Booking Travel Platforms to Foster Market Growth

The rise of online travel booking platforms, such as Airbnb, MMT, Booking.com, and others has increased the visibility of different types of hotels under different price ranges, making them accessible to consumers. Furthermore, these platforms provide easy access to consumers in selecting the right kind of hotel, thus streamlining the entire booking process. Additionally, online platforms also provide discounts and complementary offers that attract consumers looking for affordable stays, propelling hotels market growth. For instance, according to the Global Business Travel Index outlook 2023, global business travel spend increased from USD 1,357 in 2023 to USD 1,517 in 2024.

Market Restraints

Infrastructure Constraints in Developing Regions to Restrict Market Growth

Many underdeveloped regions have poor road infrastructure, inadequate transportation facilities, and less availability of direct flight operations, which reduces the demand for accommodations, including hotels. Additionally, constructing hotels in regions with poor infrastructure often requires additional investment, thus raising the final price range of the accommodations. These factors are expected to restrict the market growth in the long run.

Market Opportunities

Growth of Tourism Sector to Propel Market Growth

In recent times, growing tourism and travel activities have directly increased the need for accommodations, supporting market growth. Additionally, the growth of the tourism sector boosts investments in new accommodations and stay facilities, with in-built amenities, and complementaries. Furthermore, the hospitality sector also focuses on adopting new technology advances, such as online booking facilities, which help drive the market growth. For instance, according to the Government of India Data, the number of foreign tourist arrivals (FTAs) in India increased to 6.44 million in 2022 as compared to 1.52 million in 2021. 

Hotels Market Trends

Growing Demand for Customized Travel Packages 

Recently, many travel companies have bundled hotel stays with other traveling facilities to maximize their revenue stream. Direct bookings for customized packages, which include stay, food, traveling, and other facilities, help hotels reduce dependency on other platforms, improving the sales and profit margin of the hotel chains. Additionally, this package system is mainly popular among millennials and luxury travelers, who prefer authentic, tech-enabled, and niche experiences, thus supporting market growth.

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Segmentation Analysis

By Type

Increased Demand Hotels, Providing Value for Money to Foster Segment Growth of Economy/Budget

Based on type, the market is divided into economy/budget, midscale, and luxury.

The economy/budget segment dominates the market. Economy hotels provide affordable accommodation to consumers who prioritize value for money, as they increasingly seek affordable options. Furthermore, the expansion of various online travel agencies makes hotels more budget-friendly for consumers, further driving the segment growth.

The midscale segment is expected to grow at the fastest CAGR during the forecast period. 

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By Application

Rising Demand for Wellness-focused Trips to Propel Leisure Segment Growth

Based on application, the market is segmented into leisure and professional.

The leisure segment led the market with a share of 65.74% in 2025. Growing personal wealth and disposable incomes of consumers allow more people to travel for leisure. Furthermore, travelers increasingly seek personalized and wellness-focused trips, driving demand for diverse leisure offerings, thus fostering segment growth.

The professional segment is growing at a CAGR of 9.03% during the forecast period. 

By Booking Mode

Increasing Prevalence of Digital Payment Systems to Boost Online Booking Segment Growth

Based on the booking mode, the market is divided into online and offline.

The online segment holds the majority of the market with a share of 55.25% in 2025. The rise of digital payment systems and secure transactions has further boosted the demand for online bookings. Online booking allows travelers to compare prices, read reviews, and access a wide range of options from anywhere, further boosting the segment growth.

The online segment is expected to grow at the fastest CAGR of 8.17% during the forecast period. 

Hotels Market Regional Outlook

By region, the global market analysis is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe

Europe held the dominant hotels market share in 2024, valued at USD 718.84 billion, and also took the leading share in 2025 with a value of USD 749.84 billion. Countries, including the U.K., are expected to record the valuation of USD 120.12 billion, Germany to record USD 142.62 billion, and France to record USD 114.52 billion in 2025. Europe benefits from widespread internet penetration and advanced digital infrastructure, supporting strong growth across the region. Europe is home to some of the world’s most renowned hotel brands and luxury properties. Furthermore, the region benefits from a well-developed tourism infrastructure, including major international airports, extensive rail networks, and a rich cultural heritage, boosting the region’s market growth.

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Asia Pacific and North America 

Asia Pacific and North America are expected to grow at the fastest CAGR during the forecast period. During the forecast period, the Asia Pacific is projected to record a growth rate of 9.57%, and has achieved the position of third-largest region and reached the valuation of USD 477.20 billion in 2025. In the Asia Pacific, China and India are reached USD 162.77 billion and USD 144.99 billion, respectively, in 2025. Countries including India, Vietnam, Singapore, and Thailand are leading in hotel performance, with a surge in new hotel developments, especially in major cities and tourist hotspots, further boosting the region’s growth. After Asia Pacific, the market of North America touched USD 609.98 billion in 2025 and secured the position of the second-largest region in the market. In the region, the U.S. and Canada are both touched USD 505.61 billion and USD 80.03 billion, respectively, in 2025. The U.S. is the home to leading global hotel chains such as Marriott, Hilton, and Hyatt, which drives the growth of the market in the country. In addition, advanced technology adoption, including mobile bookings and AI-driven personalization, enhances guest experience, further boosting the country’s growth.

South America and Middle East & Africa 

Furthermore, South America and Middle East and Africa are also expected to grasp a substantial share in the market. South America in 2025 recorded USD 133.99 billion as its valuation. The Middle East & Africa attained the value of USD 109.56 billion in 2025. The rise of boutique hotels and resorts is meeting evolving consumer preferences for unique and flexible accommodations, thus propelling the region's growth.

Competitive Landscape

Key Market Players

Increasing Collaborations Between Hotel Companies with Travel Agencies to Boost Market Growth

The increasing collaboration between travel agencies and hotel companies allows the hotel companies to leverage the advanced tools of packages, based on feedback and reviews. Therefore, through the integration of travel agencies' booking systems, hotels can reach a wide consumer base, along with streamlining their operations smoothly. Additionally, these partnerships allow them to offer bundled packages, which highly attract modern consumers, who are looking for hassle-free travel and affordability, thus, propelling market growth. For instance, in June 2023, InterContinental Hotels Group PLC (IHG) announced a partnership with Hotel Express Sofia Airport OOD to open Holiday Inn Express Sofia Airport, marking the brand's debut in Bulgaria.

List of Key Hotels Companies Profiled

• Marriott International, Inc. (U.S.)
• Wyndham Hotel Group, LLC. (U.S.)
• Hilton Worldwide Holdings Inc. (U.S.)
• InterContinental Hotels Group PLC (U.K.)
• Hyatt Hotels Corporation (U.S.)
• Host Hotels & Resorts Inc. (U.S.)
• Huazhu Hotels Group Ltd (China)
• Carnival Corporation & plc (U.K.)
• Royal Caribbean Group (U.S.)
• Norwegian Cruise Line Holdings Ltd. (U.S.)

Key Industry Developments

• September 2025 – PRISM, the parent company of OYO, launched CheckIn, India's largest premium value hotel chain, uniting brands such as Townhouse Hotels, Clubhouse, Sunday Hotels, Belvilla, and Palette Hotels. The chain comprises over 1,300 hotels across India.
• July 2025 – Minor Hotels has introduced four new hotel brands as part of its strategic portfolio expansion: The Wolseley Hotels, Minor Reserve Collection, Colbert Collection, and iStay Hotels. These brands are designed to cater to different market segments, including luxury, premium, and select categories.
• July 2025 – Radisson Hotel Group has launched Radisson Flights in India through a strategic partnership with Etraveli Group, a leading global flight technology provider. This new digital offering enables guests in India to book both flights and hotels in a single, seamless transaction via the Radisson Hotels platform.
• January 2025 – Mandarin Oriental Hotel Group announced plans to open a luxury resort and residences in Cabo Rojo, Puerto Rico, called Mandarin Oriental Esencia, scheduled to debut in 2028.
• August 2024 – Cygnett Hotels & Resorts has expanded its portfolio in the mid-segment with the launch of Cozzet Deera in Sonipat. 

REPORT COVERAGE

The market research report provides a comprehensive analysis, focusing on key elements such as major companies, regional and market segmentation, market sizes, regional analysis, competition landscape, supply chain analysis, competitive dynamics, type, application, and booking type. Additionally, it offers insights into market trends and highlights significant developments within the industry. Beyond these aspects, it also examines various factors that have contributed to market growth in recent years.

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Report Scope & Segmentation