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Hospitality Market OverviewThe hospitality market is big and diverse—a vast array of hotels, motels, inns, resorts, casinos, timeshares, and more—around the world. In the U.S. alone, it’s a top 10 industry with more than 50,000 properties, nearly 5 million rooms, and more than US $150 billion in revenue.A Unique Market Opportunity NowAs an industry, hospitality took a huge hit during the 2008-2009 financial crisis and recession, as business and leisure travel plummeted dramatically. In the years since, the industry has rebounded, albeit unevenly from one country and region to another.In those areas, such as the U.S., where conditions have improved significantly, many hotel operators have a unique opportunity: the depressed economic conditions effectively put a lid on new hotel construction, so the current surge in the number of travelers is lifting average room rates and delivering a healthier bottom line.This was evident in 2012, when key national lodging performance metrics—occupancy, Average Daily Rate, and Revenue per Available Room—all saw substantial improvement. The luxury, upscale and independent segments led the way. Globalization is a huge part of this trend: China is ramping up to send about 100 million leisure tourists into the international market every year, potentially generating an additional 70 million room nights.As the lodging sector recovers, hoteliers have begun to address deferred capital expenditure, allocating an estimated US $5.0 billion in capital improvements in the U.S. in 2012, a 33 percent increase over the prior year.Read the full Hospitality Market Overview.
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