The global hotels and motels industry grew to a value of just over $719.1 billion in 2015, with Europe emerging as the largest regional market, and accounting for more than 34% of global market value, according to research firm MarketLine.
The company’s latest report shows that the US and the UK form the two largest national hotel and motel industry markets, valued at $189.6 billion and $59.8 billion, respectively. China follows as a close third, with a value of $59.6 billion.
Mohammad Hamza Iqbal, Analyst for MarketLine, comments: “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. 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%.”
Forecasts to 2020 suggest that trends within the global hotels and motels market should generally remain the same, with the Middle Eastern region notably expected to witness very strong growth, at a CAGR of 9.9%. Europe is expected to see its CAGR increase slightly to 6.2%, and the CAGR for the US is forecast to be stable at 5.4%.
MarketLine’s report shows that the leisure segment was the largest in the global hotel and motel industry in 2015, accounting for almost a third of its total value. The dominance of this segment can be seen across all national markets as well, although the business segment also has a strong presence in countries such as the US, where it accounts for almost 41% of the country’s total industry value.
Information based on MarketLine’s report: Hotels & Motels Global Industry Guide_2016.