Home World News Developed Economies Hotel Industry Projected to Surpass Half-a-Trillion Dollar Value by 2028

Hotel Industry Projected to Surpass Half-a-Trillion Dollar Value by 2028

Indoor Luxury Hotel Pool With Relaxing Lounge Area
Indoor Luxury Hotel Pool With Relaxing Lounge Area

After a three-year recovery from the impact of COVID-19, the global hotel industry is poised for significant growth, with revenues expected to reach a new milestone in the coming years.

Data from Stocklytics.com indicates that the industry’s revenue is set to grow by 9% in 2024, reaching $446.5 billion. Over the next four years, this figure is expected to increase by $50 billion, pushing the total market value beyond half a trillion dollars.

The recovery of the hotel industry has been remarkable, with tourists, travelers, and businesspeople worldwide spending more on accommodations and services than ever before. In 2023, the industry saw $411 billion in spending, a $41 billion increase from pre-pandemic levels. This upward trend is expected to continue, with annual revenue growth averaging $15 billion, culminating in a market volume of $508.9 billion by 2028.

Regionally, Asia is expected to remain the largest spender in the hotel sector, accounting for 37% of total market revenue in 2028. North America will follow closely behind, contributing roughly 30% of the revenue, while Europe is projected to generate $121.6 billion in hotel spending.

Despite this positive outlook, the stocks of major hotel groups have experienced a decline in value in recent months. Marriott International, the largest player in the industry, saw its stock price drop by $8 billion over the past two months. Similarly, Hilton Worldwide and Oriental Land, the second and third-largest companies, experienced decreases in stock value, highlighting the complexities and challenges facing the industry despite its overall growth trajectory.

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