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Hotel Industry Statistics 2023

The hotel industry is responsible for millions of jobs and hundreds of thousands of hotels around the world. We’ve put together some of the most interesting hotel industry statistics for 2023 from the latest reports and data on market size, hotel workers, popular locations and more.

Key statistics

  • There are an estimated 17.5 million guestrooms in the world.
  • The global hotel and resort industry has a market size of approximately $1 trillion, employing 10.4 million people across 742,728 different businesses.
  • The UK hotel industry market size is expected to reach £19.76 billion in 2023.
  • Malaysia is home to the largest hotel in the world, The First World Hotel, which has 7,351 rooms and suites.
  • Premier Inn has the most hotel rooms in the UK with 75,480 in total.
  • There are 184,596 hotels and motels in the U.S., employing over 2.7 million workers.
  • New York City has the most 5-star hotels in the world with a total of 132, followed by London with 118.

Hotel industry market size

The global hotel and resort industry has a market size of roughly $1 trillion, with 742,728 businesses worldwide, and 10.4 million employees.[1]

Change in hotels and resorts market size over time

The Global Hotels and Resorts market size followed a steady increase from $965 billion in 2013 to $1.5 trillion in 2019. However, the COVID-19 pandemic hit the entire hospitality industry hard, and the market size dropped back to $929 billion in 2020. The industry has since recovered from pandemic-related closures but is not yet back to pre-pandemic figures. As of 2023, the Global Hotels and Resorts market size sits at $1.2 trillion.

Using previous trend data, we made an estimation of where the global market size for the hotels and resorts industry could have been without the effects of COVID-19. We estimate that the market size could have hit $1.6 trillion in 2023 if it had continued growing at the same rate as pre-2020.

Source[2]

See the full breakdown of this data in the table below:

*Estimation of what the market size could have been without the effects of COVID-19, based on previous trend.

The largest hotels in the world

Below is a list of the top 50 largest hotels in the world, ranked by the number of rooms and suites. The largest hotel in the world is the First World Hotel in Genting Highlands, Malaysia, with 7,351 rooms and suites across its two towers. The second largest hotel in the world is the Venetian and the Palazzo in Las Vegas, USA with 7,117 rooms and suites.

Out of the top 50 largest hotels in the world, 26 are in Las Vegas, USA, with 35 in total being in the U.S. too.

Sources[3] [4]

UK hotel industry statistics

The UK hotel industry had a market size of £16.42 billion as of 2022, an increase of 45.5% from 2021’s figure of £11.28 billion. The market size of the hotel industry in the UK is expected to reach £19.76 billion in 2023.[5]

Number of hotels in the UK

As of 2023, there are currently 9,796 hotels in the UK. These have an average occupancy rate of 77.5% and the average cost for a room is £80.46 per night.

When looking specifically at London, the average occupancy rate for hotels is 84.5%, with an average room rate of £161.35 per night. This data shows that average hotel room rates in London have been consistently around double the price of the UK average since at least 2013.

Occupancy rate and room rates of hotels in the UK

*Predicted data

Sources[6] [7]

One survey looked at the popularity of different hotel brands and the UK public’s opinions of them, assessing how many people had heard of the brand and how many had a positive opinion of the brand.

In terms of how well-known these hotel brands are, the one that most people had heard of was Travelodge with 98% of respondents saying they knew of this brand, followed by Holiday Inn (97%) and Premier Inn (96%).

When looking at the percentage of people who had a positive opinion of each brand, Premier Inn came out on top, with 68% of people saying they thought positively of this brand. This

was followed by Travelodge with 58% having a positive opinion, and Walt Disney Parks and Resorts with 53%. 

Data as of Q4 2022

Sources[8]

UK hotels with the most rooms

Based on the total number of rooms, Premier Inn are the biggest hotel chain in the UK with 75,480 rooms in total. This is followed by Travelodge with 41,880, and Holiday Inn with 20,530.

Types of accommodation British people use on holiday

A survey into the type of accommodation British people use when they go on holiday found that the majority (62%) chose to stay in a hotel. The next most common place to stay was with a family member or friend (26%), followed by a Bed and Breakfast (23%).

Source[9]

U.S. hotel statistics

Let’s take a look at data from some of the latest reports on the U.S. hotel and motel industry.

Hotel industry market size in the U.S.

The market size of the hotel and motel industry in the U.S. is $239.2 billion as of 2023. This has grown by 6.4% since the previous year.[2]

Number of hotels and motels in the U.S.

In 2023, there are 184,596 hotels and motels in the U.S., employing over 2.7 million workers.

The number of hotels in the U.S. has been steadily increasing since 2013 when there were 72,165 hotels. Compared to 2022, the number of hotel and motel businesses in the U.S. has increased by 13.4%.

The market size of hotels and motels in the U.S. has also risen consistently over the last 10 year, now sitting at $341.7 billion; this is an increase of 17.9% since 2022. 

Source[2]

One survey found that Walt Disney Parks and Resorts, such as those in Orlando and Anaheim were the most popular hotel brand in the U.S, along with Marriott and Days Inn, with 96% of people saying they were familiar with these brands.

However only 55% of people said they had a positive opinion of Disney Parks and Resorts, and 51% said they thought positively of Days Inn. Just under two thirds (64%) said they had a positive opinion of Marriott hotels.

Other popular hotel brands in the U.S. include Hampton Inn, Hilton and Best Western.

Source[10]

More U.S. hotel statistics

As of December 31, 2020, there were an average of 313.1 rooms per hotel in the upper upscale chain type in the United States. In comparison, hotels in the economy chain scale segment had an average of 75.2 rooms during this period.

The average U.S. hotel occupancy rate is 64.2% as of February 2023.[2]

Top 10 U.S. cities with the highest hotel worker salaries

Below is a list of the U.S. cities that pay hotel workers the highest average salaries. The top three cities are all in California, with Santa Clara paying the most at an hourly wage of $30.10, followed by San Francisco at $29.04 per hour, and Fremont at $28.36 per hour.

Source[11]

5-star hotel statistics around the world

It is estimated that there are more than 1,000 5-star hotels around the word, but the exact number is not known.

New York City has the most 5-star hotels in the world with 132 in total, followed by London with 118 and Paris with 90. Other cities with the most 5-star luxury hotels include Dubai (78), Miami (69), and Los Angeles (60).

Source[12]

Sources

[1] https://www.ibisworld.com/global/market-research-reports/global-hotels-resorts-industry/ 

[2] https://www.ibisworld.com/industry-statistics/market-size/hotels-motels-united-states/ 

[3] https://traveltoplist.com/largest-hotels-in-the-world/ 

[4] https://www.travelweekly.com/Hotels/ 

[5] https://www.statista.com/statistics/1364712/hotel-industry-market-size-uk 

[6] https://www.ibisworld.com/united-kingdom/number-of-businesses/hotels/3375/

[7] https://www.pwc.co.uk/industries/hospitality-leisure/insights/uk-hotels-forecast.html

[8] https://yougov.co.uk/ratings/travel/popularity/hotel-brands/all 

[9] https://yougov.co.uk/topics/travel/trackers/what-type-of-accommodation-do-brits-stay-in-when-on-holiday 

[10] https://today.yougov.com/ratings/travel/fame/hotel-brands/all 

[11] https://www.ziprecruiter.com/Salaries/Hotel-Employee-Salary#Hourly 

[12] https://www.fivestaralliance.com/luxury-hotels 

Giacomo Piva

Giacomo Piva, CMO and Co-founder at Radical Storage Giacomo Piva has worked in the travel industry since 2008 across multiple niches including tourist transportation, luxury travel, and ecotourism. He now focuses on growing the global luggage network, Radical Storage, which is currently available in over 500 cities, in the likes of London, Paris, New York, and Rio de Janeiro. Giacomo has a bachelor's degree in Communication Science and an in-depth experience across travel marketing, especially in improving a brand’s digital presence within the industry.

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