Hotel Chains Market Size, Share, Growth, And Industry Analysis, by type (Economy rooms, Mid-range rooms), Upscale Rooms, Luxury Rooms, By Application (Online Booking, Offline Booking) and Regional Insights and Forecast to 2033

HOTEL CHAINS MARKET OVERVIEW

The global hotel chains Market size was valued approximately 255.74 B USD in 2024 and will touch 501.28 B USD by 2033, growing at a compound annual growth rate (CAGR) of 7.76% from 2024 to 2033.

A hotel chain is a collection of hotels owned by one company. They all use the same name, have the same standards, and look the same. This means guests receive the same good service and facilities regardless of location. They offer hotels ranging from luxury to budget options. People prefer them due to their trustworthiness and familiarity. They are renowned, offer rewards programs, provide standard services, and offer savings due to their size. Marriott, Hilton, and Accor are examples of hotel chains. These companies operate hotels globally under various names.

COVID-19 IMPACT

“Decline in Global Travel and Occupancy Rates”

The COVID-19 pandemic hit global travel hard, causing hotel chains' occupancy rates to drop sharply worldwide. Travel bans, lockdowns, and fear of infection made people not want to travel for leisure or business. Many hotels had to close temporarily, cut staff, and lost money. To keep customers, hotel chains had to follow strict health and safety rules. But the whole market shrunk, putting financial pressure on the hotel industry.

“Shift to Contactless Technology and Enhanced Hygiene Protocols”

To combat COVID-19, hotel chains quickly began using more contactless technology. This helped reduce face-to-face interactions and kept guests safe. Things such as mobile check-ins, digital room keys, and voice-activated services became more widespread. They aimed to limit human contact. Additionally, hotels cleaned more frequently, sanitized high-touch areas, and improved air filtration systems. This made guests feel safe and comfortable. These changes are now expected by hotel chains and may continue for a long time.

LATEST TREND

” Growth of Sustainable and Eco-Friendly Practices”

Eco-friendliness is a popular trend in hotels today. Both travelers and brands care more about the environment. Hotels are using less plastic, saving energy, and buying sustainable products. They are also promoting green activities like recycling, solar panels, and eco-friendly room amenities. This is because people want more sustainable travel options. It shows a larger shift towards being more eco-conscious in the hotel industry.

“Technology Integration for Enhanced Guest Experience”

Technology is changing the hotel industry. Hotels are using advanced tech to improve guests' stays. Things like mobile check-ins, digital room keys, smart controls for lighting, temperature, and entertainment, and AI-powered customer service are now common. Additionally, hotels are offering virtual concierge services and contactless payments. These tech innovations make things more convenient and efficient. They also meet guests' expectations for a smooth, tech-savvy experience. This trend will continue to grow as digital transformation becomes a major part of the hotel industry.

HOTEL CHAINS MARKET SEGMENTATION

By Type

• Economy Rooms: Economy rooms are basic, cheap rooms with just the essentials. They're for people who care about price, like families, business people, and budget travelers. This part of the hotel market is important, especially now that more people want affordable travel. It's a competitive market because travelers want clean, functional rooms at a low cost. Economy rooms are often in budget hotels, and brands try to offer good value with standard services while keeping costs down.
• Mid-range Rooms:: Mid-range rooms hit the sweet spot – neither too flashy nor too plain. They suit those who crave comfort without breaking the bank. These rooms give more bang for the buck, with superior amenities and space compared to cheaper ones. Families and business folks favor them, as they offer perks such as complimentary Wi-Fi and tasty meals at a fair price. Mid-range rooms are a popular choice, providing a balance of luxury and affordability. They offer all the essentials and a bit more, making them an ideal option for those seeking a comfortable stay without spending too much.
• Upscale Rooms: Upscale rooms are gaining fame. They boast chic decor, top-notch service, and awesome extras, like concierge help and high-tech toys. These rooms fit those who want a touch of indulgence without the full-on luxury overload. They can be found in cities and tourist hotspots, appealing to well-heeled travelers and those who crave a taste of the high life. These rooms offer a blend of elegance and comfort, providing a luxurious experience without breaking the bank. Whether in bustling cities or serene tourist spots, upscale rooms are a hit with those who want to treat themselves to something special.
• Luxury Rooms: Luxury hotel rooms are very nice, for people who want a special trip, the service is first class, the rooms look beautiful, they have everything customer need. For celebrities, important people, for anyone who wants to feel special. Many customers want luxury rooms, many luxury hotels are being built in big cities and beautiful resorts. Luxury hotels want to surprise their guests and make them happy, they have to treat their guests like royalty, give each guest something special, and serve the best food, because that's what makes the luxury hotel price worth it.

By Application

• Online Booking: Online booking means booking hotel rooms on websites, apps, or travel platforms. It's now the main way to book accommodations. It's fast and easy for travelers. The market for online hotel bookings is booming because people love to search, compare, and book hotels on their devices. Websites like Expedia, Booking.com, and hotel chains' own sites offer deals, discounts, and loyalty programs. Mobile booking and last-minute booking services have also helped the market grow.
• Offline Booking: Offline booking is when customer book hotel rooms by phone, in person at the hotel, or through a travel agency. Even though online booking is more popular, offline booking is still important for some people, like older travelers who want personal help. For hotels, offline booking is key for business and group travels where special deals and requests are common. Even though digital platforms are more convenient, offline booking still has a place, especially where not everyone has access to digital tools. Some hotels still use offline booking as part of their overall plan.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

” Increasing Global Travel and Tourism”

The hotel chains market is mainly growing because more people are traveling worldwide. With higher incomes, especially in new markets, and easier travel, there's a huge demand for places to stay. Both leisure and business trips are up, filling hotels around the globe. Plus, staycations and local travel, boosted by COVID-19, have made the market even bigger. Hotels are expanding and adapting to meet different tastes.

Restraining Factor

” Intense Market Competition”

The hotel market is fiercely competitive, with plenty of players offering similar deals, making profitability tough. Both seasoned and new hotels battle for market share, sparking price wars and necessitating constant fresh ideas. Boutique hotels and Airbnb-style accommodations also join the fray. Hotels need unique offers, stellar service, and added perks to retain guests. The market is saturated with options, so hotels must constantly innovate and up their game to stay ahead. Whether it's through special deals, exceptional service, or extra perks, hotels need to stand out in this crowded landscape to keep guests coming back.

Opportunity

” Technological Advancements and Digital Transformation”

Technology is a big chance for hotels to improve guest experiences, run more smoothly, and make more money. Tools like mobile check-ins, smart rooms, AI service, and contactless payments are making guests happier and operations more efficient. Data analytics help hotels offer personal touches and targeted marketing, building loyalty. Tech also lets hotels reach more people globally through online booking and direct channels, bringing in new revenue and boosting competition.

Challenge

” Rising Operational Costs and Economic Uncertainty”

Hotels are facing higher costs, especially for labor, energy, and maintenance. Unstable economies, like inflation and currency issues, make it worse. These costs can hurt profits, especially in tough markets where prices are sensitive. Keeping quality up while controlling costs is tough for mid-range and budget hotels. Plus, things like recessions or pandemics can hurt travel demand and occupancy, making cost management even harder.

HOTEL CHAINS MARKET REGIONAL INSIGHTS

• North America

The North American hotel market is huge and advanced. Both business and leisure travelers want hotels a lot. The US leads the market with luxury, mid-range, and cheap hotels. Loyalty programs, easy online bookings, and domestic tourism help the market grow. Big cities like New York, Los Angeles, and Miami attract lots of travelers, boosting hotel demand. Boutique and eco-friendly hotels are also becoming popular.

• Europe

Europe's hotel market is very competitive, with cheap to luxury options. Its tourism, including culture, city breaks, and business travel, drives hotel demand. Major hotel chains like Accor, Hilton, and Marriott lead, but boutique and sustainable hotels are growing too. Europeans, especially EU citizens, often book hotels online, expanding hotel websites and online travel agents. The market faces challenges like economic changes, travel preferences, and new sustainability and data protection rules.

• Asia

Asia's hotel market is growing fast because of its middle class, higher incomes, and travel appetite. China, India, Japan, and Southeast Asia drive this growth. Both international and local hotel chains are expanding in big cities, tourist spots, and business areas. Low-cost flights also boost travel in the region, helping hotels. While luxury and business hotels are still popular, mid-range and cheap hotels are demanded more in developing cities and markets. Asian hotels face challenges like infrastructure, competition from Airbnb, and different consumer expectations.

KEY INDUSTRY PLAYERS

” Competitive Landscape in the Hotel Chains Industry”

The hotel chains industry is super competitive. Big players fight for market share in different segments, from cheap to luxury hotels. They stand out by offering loyalty programs, special services, and new guest experiences like tech and sustainability. Price matters a lot now, and online booking platforms make competition even harder. So, many hotel chains focus on direct bookings to rely less on third-party platforms. Local hotel companies also compete by providing experiences tailored to their market's needs. Plus, Airbnb and other alternative stays are getting popular, forcing traditional hotel chains to offer more unique and personal stays.

List of Top HOTEL CHAINS Companies

• Hilton Worldwide
• Marriott International
• InterContinental Hotels Group
• Wyndham Hotel Group
• Choice Hotels International
• Accor Hotels
• Starwood Hotels & Resorts Worldwide
• Shanghai Jin Jiang International Hotel Group
• Best Western International
• Home Inns & Hotels Management
• Huazhu Hotels Group
• Carlson Rezidor Hotel Group
• Hyatt Hotels Corp
• GreenTree Inns Hotel Management Group
• G6 Hospitality
• Melia Hotels International
• Magnuson Hotels
• Westmont Hospitality Group
• LQ Management

KEY INDUSTRY DEVELOPMENTS

Accor and Sunmei Digital Intelligence Group signed a new master franchise agreement in July 2022 with the aim of launching and expanding the Mövenpick by Accor brand in China. In all, more than 400 Mövenpick by Accor smart technology hotels with more than 60,000 guest rooms will open throughout

Hilton Worldwide Holdings Inc. announced in July 2022 that The Starling Atlanta Midtown, Curio Collection by Hilton, made its formal premiere as the newest development of Atlanta's Hotel Midtown. This rebranding coincides with the property's inclusion in Hilton's Curio Collection, an international collection of exceptional hotels that are all hand-selected for their distinct personalities and characters.

REPORT COVERAGE

This study does a SWOT analysis and looks at future market changes. It checks out what's pushing the market up, including new areas and uses. It also looks back at past trends to get a full picture of the market and find new growth spots.

Right now, hotels are recovering from COVID-19 as more people travel for leisure and business. Big hotel chains are making guest stays better with technology, personal touches, and eco-friendly efforts. They're adapting to what people want now: safety, ease, and being green. Travel is coming back, but hotels still face tough competition, higher costs, and new types of accommodation like Airbnb. Yet, they're still growing, focusing on busy cities and new markets.

In the future, the hotel market looks promising. More people will travel, be eco-friendly, and use tech like AI and apps. Hotels will offer more choices, from budget to luxury, and change with new travel habits like remote work and longer stays. They'll also keep using loyalty programs and personal touches to keep and get new customers. To stay profitable, hotels need to innovate and save money.

Frequently Asked Questions