The hospitality buildings market is demonstrating steady growth, with its size increasing from $76.91 billion in 2023 to $80.29 billion in 2024, at a CAGR of 4.4%. Growth is fueled by economic development, international tourism, and urbanization. The market is projected to reach $95.76 billion by 2028, with a CAGR of 4.5%, driven by sustainable practices, inclusive design, and crisis resilience. Notable trends include technology integration for guest experiences and wellness-focused amenities.
Major Driver In The Hospitality Buildings Market
The anticipated exponential growth in the travel and tourism industry is set to propel the hospitality buildings market forward. The travel and tourism sector, encompassing services for travelers, contributes to business growth, increased sales, and enhanced profits for the hospitality sector. Hospitality buildings, crucial for serving meals, providing short-term lodging, and other services to visitors, play a pivotal role in this industry. According to Coldwell Banker Richard Ellis (CBRE) Group's February 2023 report, all aspects of hotel real estate fundamentals experienced year-over-year growth in Q4 2022, with a 3.6% increase in demand, a 3.6% rise in occupancy, a 16.2% increase in revenue per available room (RevPAR), and a 12.1% increase in the average daily rate (ADR). Additionally, the Civil Aviation Authority reported a substantial increase in UK air travel in March 2023, with over 224 million passengers in 2022 compared to 65.4 million in 2021. Corporate (GDS) and group reservations increased by 30% and 18%, respectively, contributing to an overall booking growth of about 4%. This exponential growth in the travel and tourism industry is a key driver for the hospitality buildings market in 2023, 2024, and 2028.
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Hospitality Buildings Market Competitive Landscape
Turner Construction Company, AECOM, Balfour Beatty Construction, STO Building Group, The Whiting-Turner Contracting Company, Whiting-Turner Contracting Company, Gilbane Building Company, JE Dunn Construction Group, Hensel Phelps Construction Company, DPR Construction Inc., HITT Contracting Inc., Brasfield & Gorrie LLC, Clark Construction Group LLC, Mortenson Inc., PCL Constructors Inc., McCarthy Holdings Inc., Suffolk Construction Company, The Yates Companies, Gray Construction Inc., Robins & Morton Inc., Sundt Construction Inc., Swinerton, W.E. O'Neil Construction Co., Hoffman Construction Company, Messer Construction Company, Skanska USA Civil Inc., The Beck Group Inc., Pepper Construction Company, Webcor Builders LLC, Layton Construction Company LLC, Clayco Inc., Hoar Construction LLC, Weis Builders Inc.
Key Hospitality Buildings Market Trend
Product innovations are a key trend gaining popularity in the hospitality buildings market. Major market players are concentrating their efforts on innovating new building architecture to strengthen their position in the market. For instance, in January 2023, Volumetric Building Companies, a US-based construction firm specializing in modular housing, launched the first modular prototype of a new hotel architecture that will let the Fairfield by Marriott brand (a hotel brand) spread faster throughout Europe. The application of innovative modular technology will assist developers in overcoming some of their difficulties by accelerating construction, improving acoustics with reduced noise transfer between modules, and improving quality.
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Hospitality Buildings Market Segmentation
The hospitality buildings market covered in this report is segmented –
1) By Hotel Type: Business Or Commercial Hotels, Boutique Hotels, Resort Hotels, Casino Hotels, Transit Hotels, Bed And Breakfast Hotels, Other Types
2) By Price Level: Luxury, Upscale, Midscale, Economy
3) By Room Capacity: Small, Medium, Large, Mega
4) By Business Model: Individual, Chain
By Geography:The regions covered in the hospitality buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the hospitality buildings market in 2023.
The Hospitality Buildings Global Market Report 2024 furnishes information about the global hospitality buildings market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
