Lodging
Description
Companies in this industry operate hotels, motels, resorts, casino hotels, and bed and breakfast inns, along with RV parks, recreational camps, and rooming and boarding houses. Major companies include Hilton, Las Vegas Sands, Marriott International, and MGM Resorts (all based in the US), as well as Accor (France), IHG Hotels & Resorts (UK), and SJM Holdings (Hong Kong).
The global hospitality market is expected to reach over $6 trillion in 2027 at a compound annual growth rate (CAGR) of 5.5%, according to Hospitality Insights. Shifts in consumer expectations and technological advancements are driving the growth in the hospitality industry.
The US lodging industry consists of about 70,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $260 billion.
COMPETITIVE LANDSCAPE
Business and leisure travel drive demand. Strength of the economy affects these factors. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies can compete by offering personalized service and a unique customer experience. The US industry is fragmented: the 50 largest companies account for about 40% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major revenue sources for the industry include room or unit accommodation, which accounts for about 60%, followed by gambling machine products (about 15%), and meals, snacks, other food items, and beverages (about 5%). Other products and services include table wagering games and alcoholic beverages. Bed and breakfast inns (B&Bs) primarily offer guest rooms, typically in a converted private home, with breakfast services in a common dining area.
Basic operations consist of providing sleeping accommodations, housekeeping, maintenance, and a variety of personal services. Hotels may provide restaurants, business services, and resort services such as golf, tennis, swimming pools, and fitness centers. Typical RV park amenities include a grocery store or snack bar, coin-operated laundry facilities, and playgrounds.
Labor is a significant operating expense and requires efficient personnel management. Key industry metrics, in addition to retail sales, are occupancy rates, average room prices, and revenue per available room (RevPAR), which is a hotel's occupancy rate multiplied by its average daily room rate (ADR).
Most companies own and operate their own properties, but other arrangements are common. Some hotel companies are operators that receive the majority of their revenue from management fees. Companies may franchise their brands to other owners, manage hotels that belong to other owners, or lease hotels from other owners.
The global hospitality market is expected to reach over $6 trillion in 2027 at a compound annual growth rate (CAGR) of 5.5%, according to Hospitality Insights. Shifts in consumer expectations and technological advancements are driving the growth in the hospitality industry.
The US lodging industry consists of about 70,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $260 billion.
COMPETITIVE LANDSCAPE
Business and leisure travel drive demand. Strength of the economy affects these factors. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies can compete by offering personalized service and a unique customer experience. The US industry is fragmented: the 50 largest companies account for about 40% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major revenue sources for the industry include room or unit accommodation, which accounts for about 60%, followed by gambling machine products (about 15%), and meals, snacks, other food items, and beverages (about 5%). Other products and services include table wagering games and alcoholic beverages. Bed and breakfast inns (B&Bs) primarily offer guest rooms, typically in a converted private home, with breakfast services in a common dining area.
Basic operations consist of providing sleeping accommodations, housekeeping, maintenance, and a variety of personal services. Hotels may provide restaurants, business services, and resort services such as golf, tennis, swimming pools, and fitness centers. Typical RV park amenities include a grocery store or snack bar, coin-operated laundry facilities, and playgrounds.
Labor is a significant operating expense and requires efficient personnel management. Key industry metrics, in addition to retail sales, are occupancy rates, average room prices, and revenue per available room (RevPAR), which is a hotel's occupancy rate multiplied by its average daily room rate (ADR).
Most companies own and operate their own properties, but other arrangements are common. Some hotel companies are operators that receive the majority of their revenue from management fees. Companies may franchise their brands to other owners, manage hotels that belong to other owners, or lease hotels from other owners.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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