Lodging Construction And Renovation Market Report 2026

Lodging Construction And Renovation Market Overview

• Lodging Construction And Renovation market size has reached to $653.86 billion in 2025 • Expected to grow to $1048.73 billion in 2030 at a compound annual growth rate (CAGR) of 9.8% • Growth Driver: Rising Travel Tourism Fueling The Growth Of The Market Due To Increasing Disposable Income And Demand For Enhancing Accommodation Experiences • Market Trend: Technologically Advanced Solutions Enhance Energy Efficiency And Guest Comfort • North America was the largest region and fastest growing region.

What Is Covered Under Lodging Construction And Renovation Market?

Lodging construction and renovation refer to the building of new hotels and lodging facilities as well as the upgrading or refurbishing of existing properties. It includes activities such as structural work, interior finishing, and installation of mechanical and electrical systems to enhance functionality, safety, and guest experience. The main types of lodging construction and renovation are new hotel construction, hotel renovation and refurbishment, hotel expansions and additions, and conversion and adaptive reuse. New hotel construction involves developing entirely new hotel properties from the ground up, covering structural, architectural, and interior elements. This sector involves various construction methods such as traditional construction methods, modular and prefabricated construction, advanced construction technologies, and sustainable construction methods, with material categories including structural materials, building envelope materials, interior finish materials, and mechanical, electrical, and plumbing (MEP) materials and equipment. It finds applications that cover full-service hotels, limited-service hotels, specialty hotels, and alternative accommodations.

What Is The Lodging Construction And Renovation Market Growth Forecast?

The lodging construction and renovation market size is expected to see strong growth in the next few years. It will grow to $1048.73 billion in 2030 at a compound annual growth rate (CAGR) of 9.8%. The growth in the forecast period can be attributed to increasing use of modular and prefabricated construction, adoption of advanced construction technologies, growth of energy-efficient MEP installations, expansion of AI-assisted project management, rising demand for connected building systems. Major trends in the forecast period include adoption of modular and prefabricated construction techniques, implementation of smart hotel management systems, integration of energy-efficient construction practices, expansion of connected building materials monitoring, deployment of AI-assisted interior design and fit-out solutions.

Global Lodging Construction And Renovation Market Segmentation

1) By Type: New Hotel Construction, Hotel Renovation And Refurbishment, Hotel Expansions And Additions, Conversion And Adaptive Reuse 2) By Construction Method: Traditional Construction Methods, Modular And Prefabricated Construction, Advanced Construction Technologies, Sustainable Construction Method 3) By Material Category: Structural Materials, Building Envelope Materials, Interior Finish Materials, Mechanical, Electrical, And Plumbing (MEP) Materials And Equipment 4) By Application: Full-Service Hotels, Limited-Service Hotels, Specialty Hotels, Alternative Accommodations Subsegments: 1) By New Hotel Construction: Luxury Hotels, Mid-Scale Hotels, Budget Hotels 2) By Hotel Renovation And Refurbishment: Interior Upgrades, Exterior Renovations, Energy Efficiency Retrofits 3) By Hotel Expansions And Additions: Additional Guest Rooms, Conference And Event Spaces, Wellness And Spa Facilities 4) By Conversion And Adaptive Reuse: Office-To-Hotel Conversions, Residential-To-Hotel Conversions, Historic Building Restorations

What Is The Driver Of The Lodging Construction And Renovation Market?

The rising travel tourism is expected to propel the growth of the lodging construction and renovation market going forward. Travel and tourism refer to activities and services associated with people visiting destinations for leisure, business, or cultural experiences. Travel and tourism are increasing due to rising disposable income, enabling more people to spend on vacations and leisure experiences. Lodging construction and renovation enhance travel and tourism by providing modern, comfortable, and sustainable accommodations. They improve guest experiences through upgraded facilities and innovative designs, supporting the growth and attractiveness of travel destinations. For instance, in 2025, according to the UN Tourism, a Spain-based specialized agency for tourism, between January and June of 2025, almost 690 million tourists traveled abroad, an increase of roughly 33 million over the same time in 2024. Therefore, the rising travel tourism is driving the growth of the lodging construction and renovation industry.

Key Players In The Global Lodging Construction And Renovation Market

Major companies operating in the lodging construction and renovation market are Skanska USA, Whiting-Turner Contracting Company, STO Building Group, DPR Construction, Gilbane Building Company, Suffolk Construction Company, Inc., Manhattan Construction, R.D. Olson Construction, Inc., IDC Construction, Inc., W.E. O'Neil Construction, The Beam Team, Inc., Steelman Partners, Salisbury Moore Construction, Inc., Lippe Construction Services, Inc., Case & Associates Construction, Inc., Crystal Hospitality, Inc., Greython Construction, Hillways Construction, Vöcker Hospitality GmbH, Buildiyo

Global Lodging Construction And Renovation Market Trends and Insights

Major companies operating in the lodging construction and renovation market are focusing on developing technologically advanced solutions, such as building automation systems, to enhance energy efficiency, optimize operational management, and improve guest comfort. Building automation system refers to a technology framework that automates and integrates a building’s operations, including heating, ventilation, air conditioning, lighting, and security, to ensure efficient management and enhanced occupant comfort. For instance, in February 2025, Delta Electronics Inc., a Taiwan-based electronics company, launched a Delta Intelligent Building Technologies (DIBT) platform to integrate smart automation, energy management, and IoT solutions for enhanced building efficiency and sustainability. It is a unified platform that integrates Delta's expertise in architectural lighting, building automation, and indoor air quality to create smart, energy-efficient, and sustainable buildings. The platform offers tailored solutions to optimize energy use, enhance occupant comfort, improve security, and enable real-time monitoring and control. DIBT helps businesses achieve operational excellence and sustainability goals through scalable, integrated smart building technologies.

What Are Latest Mergers And Acquisitions In The Lodging Construction And Renovation Market?

In September 2025, Ameribrands LLC, a US-based holding company, acquired Genesis Hotel Services for an undisclosed amount. With this acquisition, Ameribrands LLC aims to expand its national hospitality renovation capabilities by delivering fast, consistent, and large-scale renovation projects while providing multi-site customers with a single-source partner that ensures speed, scale, and uniformity across all projects. Genesis Hotel Services is a US-based renovation company that offers lodging construction and renovation services.

Regional Insights

North America was the largest region in the lodging construction and renovation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Lodging Construction And Renovation Market?

The lodging construction and renovation market includes revenues earned by entities through maintenance and repair services, interior design and fit-out services, repairs and preventive maintenance services, project management and consultancy services, and health and safety compliance work services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in theLodging Construction And Renovation Market Report 2026?

The lodging construction and renovation market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the lodging construction and renovation industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.