Lodging Industry Profile

Companies in this industry operate hotels, motels, resorts, casino hotels, and bed and breakfast inns, along with RV parks, recreational camps, and rooming and boarding houses. Major companies include Hilton, Las Vegas Sands, Marriott International, and MGM Resorts (all based in the US), as well as Accor (France), IHG Hotels & Resorts (UK), and SJM Holdings (Hong Kong).

The global hospitality market is expected to reach over $6 trillion in 2027 at a compound annual growth rate (CAGR) of 5.5%, according to Hospitality Insights. Shifts in consumer expectations and technological advancements are driving the growth in the hospitality industry.

The US lodging industry consists of about 70,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $260 billion.

COMPETITIVE LANDSCAPE

Business and leisure travel drive demand. Strength of the economy affects these factors. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have advantages in economies of scale in operations, can more easily raise capital, and have strong name recognition. Small companies can compete by offering personalized service and a unique customer experience. The US industry is fragmented: the 50 largest companies account for about 40% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major revenue sources for the industry include room or unit accommodation, which accounts for about 60%, followed by gambling machine products (about 15%), and meals, snacks, other food items, and beverages (about 5%). Other products and ...