Good Outlook for the Hotel Market
Hotels Market is Expected to Reach USD 702.74 Billion in 2021.
According to a new market report published by Transparency Market Research “Hotels Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2021,” the hotels market was valued at USD 534.02 billion in 2014, which is expected to reach USD 702.74 billion by 2021, growing at a CAGR of 4.0% from 2015 to 2021.
Hotel is one of the major sectors boosting the hospitality industry globally. Rapid growth in the travel and tourism industry is one of the major factors driving the hotels market. Moreover, aggressive branding strategies adopted by key players coupled with segmented offerings are also expected to have a positive impact on the hotels market globally. In addition, the major players are focusing on improvement of customer service experience, thereby increasing the number of revisits driving the hotels market.
The hotels market by type has been segmented into: 1 Star, 2 Star, 3 Star, 4 Star, 5 Star and unrated. 3 Star segment held the largest market share in the global hotels market. Booming travel and tourism industry coupled with demand for luxurious lifestyle are the major factors fueling the demand in this segment. However, with increasing demand for budget hotels, the unrated segment is expected to witness the fastest growth during the forecast period.
Europe is expected to experience sluggish growth in the forecast period. U.K., Germany, France and Italy among others are some of the major countries boosting the hotels market in Europe. UAE is also one of the major markets for hotels in rest of the world. The UAE hotels market was valued at USD 6.56 billion in 2014. The 4 Star segment held the largest market share in the UAE hotels market. Brazil and Saudi Arabia are some of the other major countries boosting the hotels market in rest of the world.
By geography, hotels market has been segmented into: North America, Europe, Asia Pacific and rest of the world (RoW). North America is the largest as well as the fastest growing market for hotels globally. Booming travel and tourism industry is one of the major factors fueling the demand for hotels in this region.
The 3 Star segment held the largest market share in the hotels market in North America. However, unrated segment is expected to be the fastest growing segment in North America. The U.S. held the largest market share in the North America hotels market. Increasing business and leisure tourism is one of the major factors fueling the hotels market in the U.S.
Asia Pacific hotels market also offers huge untapped potential. India, China, South Korea and Singapore are some of the major markets fueling the Asia Pacific hotels market. Singapore is the fastest growing market in Asia Pacific. Increasing number of business travelers is one of the major factors fueling the hotels market in Singapore. The 5 Star segment held the largest market share in the Singapore hotels market.
The U.K., Germany and France are the major countries driving the Europe hotels market. However, with presence of large number of hotels, the hotels market in Europe is expected to experience sluggish growth throughout the forecast period.
Brazil, UAE and Saudi Arabia among others are some of the major countries driving the hotels market in the rest of the world. UAE with increasing number of business and leisure travelers is the fastest growing market in rest of world. Moreover, increasing number of international events is also expected to drive the hotels market in UAE.
The hotels market is currently dominated by some of the key players. Some of the major players operating in the hotels market are Hilton Worldwide Holdings Inc., Marriott International Inc., InterContinental Hotels Group Plc, Starwood Hotels and Resorts Worldwide, Inc., Accor Group, Indian Hotels Co Ltd., ITC Ltd., Jumeirah International LLC, Atlantis The Palm Limited, and Four Seasons Holdings Inc. among others.
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