News Summary
The global lodging construction and renovation market is set for substantial growth, with projections indicating an increase from USD 629.5 billion to USD 1.36 trillion. This growth is driven by rising consumer demand for new hotels, energy-efficient designs, and increased global travel. Hotel types such as full-service hotels have significant market shares, and regions like the Southern U.S. are hotspots for development despite economic challenges. Major construction companies dominate the market, focusing on innovation to navigate challenges ahead.
Global Lodging Construction & Renovation Market Projected for Significant Growth
The global lodging construction and renovation market is anticipated to undergo notable expansion, evolving from an estimated USD 659.7 billion in 2025 to around USD 1.36 trillion by 2034. This upward trajectory signifies a compound annual growth rate (CAGR) of 8.5%, reflecting growing demand and investment within the sector.
Market Analysis and Segmentation
In 2024, the lodging construction market was valued at approximately USD 629.5 billion, with forecasts indicating further growth in the coming years. The segment of structural materials, essential for hotel foundations and frameworks, constituted about 35% of the overall market share in 2024 and is expected to maintain a strong growth rate of over 8% through to 2034.
The market segments into various categories, including hotel types such as full-service hotels, limited-service hotels, specialty hotels, and alternative accommodations. Full-service hotels alone represented 35% of the market share in 2024 and are projected to continue expanding at a similar CAGR well into 2034.
Project Types Fueling Growth
Multiple project types are contributing to this growth, including new hotel constructions, renovations and refurbishments, expansions, and conversions. Among these, new hotel construction is set to dominate the market due to increasing demand for smart infrastructures and energy-efficient designs.
Construction Methods
Traditional construction methods are expected to continue leading the way in the lodging sector. Despite the emergence of innovative techniques such as modular and prefabricated construction, the familiarity and adaptability of traditional methods serve as significant advantages, especially across various project scales.
Regional Performance and Trends
In North America, the U.S. lodging construction market holds a commanding presence, capturing approximately 80.5% of the market share and generating about USD 135.8 billion in revenue in 2024. Looking ahead, regions such as the UK, China, the UAE, and Brazil are also projected to experience robust growth from 2025 to 2034.
Current Challenges in the U.S. Market
While the U.S. market remains dominant, it is currently facing challenges. The hotel construction sector in the U.S. has marked the lowest construction levels in 20 quarters, reflecting a nearly 12% decline from the previous year. Economic volatility, fluctuating construction costs, and decreased investor confidence have contributed to slowed momentum in new hotel investments.
Despite national downturns, certain regions in the Southern U.S. are witnessing a surge in new hotel developments. Notably, Dallas has emerged as the largest hotel construction market in the nation, with expectations to increase its hotel supply by almost 25% by 2027. Conversely, cities like Boston are noting a slowdown due to high construction expenses and a lack of quality sites, hindering the overall recovery in that market.
Market Overview and Future Outlook
The outlook for the lodging construction and renovation market is primarily driven by the immediate need for improved infrastructures and climate-conscious building solutions. Major players in the field, such as Barton Malow Company, Balfour Beatty US, and Clark Construction Group, together accounted for around 40% of market share in 2024, showcasing the competitive landscape of this booming industry.
The market research reports on this subject provide extensive insights, forecasting revenues from 2021 through 2034 and offering detailed breakdowns covering 20 companies across 24 countries, supported by over 170 tables and figures. As the demand for lodging continues to grow, both new constructions and renovations will play a pivotal role in shaping the industry’s future landscape.
Deeper Dive: News & Info About This Topic
Additional Resources
- Global Market Insights
- Travel and Tour World
- The Real Deal
- Banker & Tradesman
- Hotel Investment Today
- Wikipedia: Hotel Industry
- Google Search: Lodging Construction Market
- Google Scholar: Lodging Construction
- Encyclopedia Britannica: Hotel Construction
- Google News: Lodging Construction
