Global Hotel Industry Valued at $719B
The global hotel and motel industry has increased in value, reaching a total $719.1 billion in 2016.
This is according to a report from research firm MarketLine, which also revealed that Europe is now the largest regional market, accounting for more than 34% of global market value.
The report shows that the US remains by far the largest national hotel and motel industry market, with a value of US$189.6B last year – more than a quarter of the global total. The UK was second, with a value of US$59.8B, with China a close third at $59.6B.
“While the compound annual growth rate (CAGR) for the global market stands at a healthy 6.8% between 2011 and 2015, it is not an accurate indication of individual regional markets, which in some cases deviate considerably from the global figure,” explained Mohammad Hamza Iqbal, an analyst for MarketLine. “North America, for example, has grown by a strong 8.5% during this period, whereas the Scandinavian market has grown by a relatively more moderate 4.5%.”
Looking ahead, MarketLine forecasts that the industry’s growth trends should “generally remain the same”. Notably, the Middle Eastern is expected to witness strong growth, with a CAGR of 9.9%. Europe is expected to see its CAGR increase slightly to 6.2%, while growth in the US is forecast to be stable at 5.4%.
Almost a third of the total value of the hotel industry in 2015 was driven by the leisure sector, the report added.