What Has Been the Progress and Growth of the Hospitality Buildings Market in Recent Years?
The hospitality buildings market has seen considerable growth due to a variety of factors.
• The market size of hospitality buildings has been steadily increasing over the past few years. It is projected to rise from $81.62 billion in 2024 to $85.57 billion in 2025, with a compound annual growth rate (CAGR) of 4.8%.
Factors such as economic development, travel patterns, globalization and international tourism, urbanization and population expansion, cultural and lifestyle shifts, and the emergence of boutique and niche accommodations have contributed to the growth observed in the historic period.
What are the Market Size and Expected Growth Rates for the Hospitality Buildings Market?
The hospitality buildings market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for hospitality buildings is predicted to enjoy consistent expansion in the coming years. The expectation is that it will reach a value of $103.44 billion by 2029, showing a compound annual growth rate (CAGR) of 4.9%.
The anticipated growth during the forecast period is associated with elements such as eco-friendly and sustainable standards, concern for health and safety, manoeuvrability during crisis and adaptability, inclusive designs catering for a range of traveller requirements, and practices that replenish tourism. Prominent trends expected in the forecast period are the amalgamation of technology for enhancing guest experiences, advancements in technology benefiting guest services, incorporation of touch-free technology, a focus on amenities that promote wellness, and the provision of adaptable and flexible spaces.
What Are The Primary Growth Drivers In The Hospitality Buildings Market?
The rapid expansion of the travel and tourism industry is anticipated to fuel the development of the hospitality buildings market in the future. The travel and tourism sector is characterized by businesses that offer essential products and services to those on the move. An increase in tourism activities can stimulate business growth, boost sales, and bolster profit margins for these enterprises, thereby improving the financial performance of hospitality firms. Hospitality buildings are integral to the travel and tourism industry as they are the businesses that provide meals, offer short-term accommodations, and other services to individuals such as tourists and travelers. Accordingly, an increase in the number of travelers and tourists will catalyze the construction of more hospitality facilities. In February 2023, the Coldwell Banker Richard Ellis (CBRE) Group, a US-based commercial real estate services and investment enterprise, reported that all facets of hotel real estate fundamentals experienced year-over-year growth in Q4 2022. Demand rose by 3.6%, occupancy increased by 3.6%, revenue per available room (RevPAR) increased by 16.2%, and the average daily rate (ADR) grew by 12.1%. Additionally, in March 2023, the Civil Aviation Authority, a UK-based statutory entity, reported a significant rise in UK air travel in 2022, with over 224 million passengers flying through UK airports. The overall bookings for the year saw a growth of about 4%, largely driven by a 30% increase in corporate (GDS) reservations and an 18% increase in group bookings compared to the previous year. Consequently, this surge in the travel and tourism industry is stimulating expansion in the hospitality building market.
How Is The Globa Hospitality Buildings Market Divided Into Key Segments?
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
Subsegments:
1) By Business Or Commercial Hotels: Full-Service Hotels, Limited-Service Hotels
2) By Boutique Hotels: Luxury Boutique Hotels, Economy Boutique Hotels
3) By Resort Hotels: Beach Resorts, Mountain Resorts, Spa Resorts
4) By Casino Hotels: Integrated Casino Resorts, Standalone Casino Hotels
5) By Transit Hotels: Airport Hotels, Train Station Hotels
6) By Bed And Breakfast Hotels: Traditional, Modern
7) By Other Types: Extended Stay Hotels, Hostels, Vacation Rentals
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What Trends Are Reshaping The Hospitality Buildings Market Landscape?
Product advancements are emerging as a significant trend in the market for hospitality structures. Large market participants are focusing their efforts on creating innovative building designs in order to enhance their market standing. For example, in January 2023, a US construction company specializing in modular housings, Volumetric Building Companies, introduced the first modular prototype of a fresh hotel design intending to expedite the expansion of the Fairfield by Marriott brand, a hotel franchise, across Europe. The use of cutting-edge modular technology will help developers tackle challenges by speeding up construction, enhancing sound insulation to minimize noise leakage between modules, and upgrading quality.
Who Are the Key Players in the Hospitality Buildings Market?
Major companies operating in the hospitality buildings market include:
• Turner Construction Company
• AECOM
• Balfour Beatty Construction
• STO Building Group
• The 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.
What are the Regional Insights into the Hospitality Buildings Market?
North America was the largest region in the hospitality buildings market in 2024. The regions covered in the hospitality buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
