Key Takeaways
- The U.S. motel industry revenue reached $18.4 billion in 2023, marking a 4.2% increase from 2022.
- Global motel market size was valued at $85.6 billion in 2022 and is projected to grow to $112.3 billion by 2030 at a CAGR of 3.4%.
- U.S. motels accounted for 12% of total lodging revenue in 2023, totaling $22.1 billion including ancillary services.
- U.S. motel industry achieved 92% revenue recovery to 2019 levels by end of 2023.
- National U.S. motel occupancy rate averaged 64.5% in 2023.
- Motel RevPAR in the U.S. increased 8.2% YoY to $42.10 in December 2023.
- U.S. labor costs for motels rose 12.5% to $5.2 billion industry-wide in 2023.
- Average utility expenses per U.S. motel room were $1,240 annually in 2023.
- U.S. motel industry profit margin averaged 11.8% in 2023.
- 45% of U.S. motel guests were millennials aged 25-40 in 2023.
- 28% of U.S. motel bookings came from families with children under 18 in 2023.
- Solo business travelers made up 19% of U.S. motel stays in 2023.
- U.S. motels concentrated 42% in the South region with 18,500 properties in 2023.
- California hosted 2,450 motels, 14% of U.S. total in 2023.
- Texas motel inventory stood at 1,980 properties in 2023.
The motel industry is experiencing steady global revenue growth fueled by domestic travel recovery.
Costs and Profitability
- U.S. labor costs for motels rose 12.5% to $5.2 billion industry-wide in 2023.
- Average utility expenses per U.S. motel room were $1,240 annually in 2023.
- U.S. motel industry profit margin averaged 11.8% in 2023.
- Property taxes for U.S. motels totaled $1.1 billion in 2023.
- Average marketing spend per U.S. motel was $45,000 in 2023.
- U.S. motel housekeeping labor costs per room were $18.50 daily in 2023.
- Insurance premiums for U.S. motels averaged $0.45 per $100 revenue in 2023.
- U.S. motel EBITDA margin was 18.2% for chains in 2023.
- Maintenance costs per U.S. motel room hit $1,850 in 2023.
- U.S. motel franchise fees averaged 5.3% of revenue in 2023.
- Energy costs rose 8.7% for U.S. motels to $2.3 billion total in 2023.
- Average U.S. motel operating expense ratio was 78.4% of revenue in 2023.
- U.S. motel payroll taxes and benefits added 28% to wages in 2023.
- Renovation capital expenditures per U.S. motel room were $4,200 in 2023.
- U.S. motel food and beverage cost (where applicable) was 32% of sales in 2023.
- Property management fees averaged 3.2% for U.S. motels in 2023.
- U.S. motel linens and laundry costs per room were $450 yearly in 2023.
- Credit card processing fees took 2.8% of U.S. motel revenue in 2023.
- U.S. motel industry net profit totaled $2.1 billion in 2023.
- Average front desk labor cost per occupied room night was $12.40 in U.S. motels 2023.
- U.S. motel water and sewer costs averaged $820 per property in 2023.
- Return on investment for U.S. motels averaged 9.7% in 2023.
- U.S. motel OTA commissions averaged 15.2% of booking revenue in 2023.
- Telecom and internet costs per U.S. motel room were $210 annually in 2023.
- U.S. motel waste management expenses totaled $450 million industry-wide 2023.
- Average debt service coverage ratio for U.S. motels was 1.85x in 2023.
- U.S. motel amenities cost per room was $320 yearly in 2023.
Costs and Profitability Interpretation
Geographic Distribution
- U.S. motels concentrated 42% in the South region with 18,500 properties in 2023.
- California hosted 2,450 motels, 14% of U.S. total in 2023.
- Texas motel inventory stood at 1,980 properties in 2023.
- Florida had 1,720 motels representing 9.8% of national supply in 2023.
- Midwest U.S. accounted for 22% of motels with 3,850 units in 2023.
- Arizona motel count was 890 in 2023, focused on interstates.
- Nevada's Las Vegas area had 450 motels in 2023.
- U.S. Northeast region had 15% of motels, 2,630 properties in 2023.
- Along I-95 corridor, 1,200 motels operated in 2023.
- Rural U.S. areas held 28% of motel stock, 4,920 sites in 2023.
- West Coast U.S. motels totaled 3,210 in 2023.
- New Mexico had 420 motels primarily near borders in 2023.
- Pennsylvania interstate motels numbered 760 in 2023.
- Canada motel distribution: 35% in Ontario with 1,450 properties 2023.
- Mexico border states had 980 motels in 2023.
- U.S. urban motels were 19% of total, 3,330 in cities 2023.
- Oklahoma truck stop motels totaled 320 in 2023.
- Australia motel concentration 40% in New South Wales, 1,200 sites 2023.
- U.S. Pacific Northwest motels: 780 properties in 2023.
- Georgia I-75 corridor had 450 motels in 2023.
- Europe motel density highest in UK with 2,100 budget sites 2023.
- U.S. Southwest region 25% motel share, 4,375 properties 2023.
- Michigan had 610 motels near Great Lakes in 2023.
- 52% of U.S. motels within 1 mile of interstates in 2023.
- Colorado mountain town motels: 340 in 2023.
- U.S. motel growth highest in Sun Belt states +2.1% in 2023.
- Indiana I-70 motels totaled 280 properties 2023.
- 8% of global motels in North America, 28,000 properties 2023.
Geographic Distribution Interpretation
Guest Demographics
- 45% of U.S. motel guests were millennials aged 25-40 in 2023.
- 28% of U.S. motel bookings came from families with children under 18 in 2023.
- Solo business travelers made up 19% of U.S. motel stays in 2023.
- 62% of U.S. motel guests were domestic travelers in 2023.
- Female guests accounted for 52% of U.S. motel check-ins in 2023.
- Average U.S. motel guest age was 41 years in 2023.
- 35% of U.S. motel visitors were Gen Z (18-24) in summer 2023.
- Couples without children represented 24% of U.S. motel occupancy in 2023.
- 15% of U.S. motel guests were international tourists in 2023.
- Road trippers comprised 41% of U.S. motel guest base in 2023.
- 27% of U.S. motel stays were by seniors over 65 in 2023.
- Budget-conscious guests under $50k income were 38% of U.S. motels in 2023.
- Pet owners made up 22% of U.S. motel repeat guests in 2023.
- Truck drivers accounted for 12% of U.S. motel nightly stays in 2023.
- 31% of U.S. motel guests booked via mobile apps in 2023.
- Leisure travelers were 67% of U.S. motel market in 2023.
- Hispanic/Latino guests represented 18% of U.S. motel stays in 2023.
- Repeat guests loyalty rate was 29% for U.S. motels in 2023.
- 23% of U.S. motel guests were attending events/conferences in 2023.
- Average U.S. motel guest length of stay was 1.8 nights in 2023.
- African American guests were 9% of U.S. motel occupancy in 2023.
- 14% of U.S. motel guests traveled for medical reasons in 2023.
- Asian American guests comprised 7% of U.S. motels in 2023.
- 36% of U.S. motel bookings were last-minute in 2023.
- Government/military travelers were 11% of U.S. motel stays in 2023.
Guest Demographics Interpretation
Occupancy and RevPAR
- U.S. motel industry achieved 92% revenue recovery to 2019 levels by end of 2023.
- National U.S. motel occupancy rate averaged 64.5% in 2023.
- Motel RevPAR in the U.S. increased 8.2% YoY to $42.10 in December 2023.
- U.S. urban motel occupancy hit 67.3% in Q4 2023.
- Average daily rate (ADR) for U.S. motels rose 3.9% to $65.20 in 2023.
- Suburban U.S. motel RevPAR grew 7.1% YoY to $38.90 in 2023.
- U.S. highway motel occupancy averaged 62.8% throughout 2023.
- Motel RevPAR index for economy segment was 105.4 in 2023 vs 2019=100.
- U.S. motel occupancy in the West region reached 66.1% in 2023.
- Peak U.S. motel occupancy was 72.4% in July 2023.
- U.S. independent motel ADR averaged $58.70 in 2023.
- Motel RevPAR growth in Midwest U.S. was 6.8% to $36.50 in 2023.
- U.S. motel occupancy for weekends averaged 68.2% in 2023.
- Economy motel RevPAR nationwide was $41.20, up 9.3% YoY in 2023.
- U.S. resort-area motel occupancy was 59.7% in off-peak 2023.
- Motel ADR inflation-adjusted grew 2.1% to $63.40 in U.S. 2023.
- U.S. South motel RevPAR hit $44.80, +7.6% YoY in 2023.
- Airport motel occupancy averaged 65.9% in U.S. 2023.
- U.S. motel RevPAR per sq ft was $0.89 in 2023.
- Downtown U.S. motel occupancy recovered to 70.2% in late 2023.
- U.S. chain motel RevPAR was $46.10 vs independents $39.50 in 2023.
- Motel occupancy in Florida motels averaged 71.5% in 2023.
- U.S. extended-stay motel RevPAR reached $52.30 in 2023.
- Interstate highway motel occupancy was 63.4% annually in U.S. 2023.
- U.S. Northeast motel ADR was $68.90 in 2023.
- Motel RevPAR CAGR for U.S. 2019-2023 was 4.2%.
- Rural U.S. motel occupancy stood at 58.7% in 2023.
- U.S. pet-friendly motel occupancy was 69.3% in 2023.
- Trucker motel RevPAR averaged $37.20 in U.S. 2023.
Occupancy and RevPAR Interpretation
Revenue and Market Size
- The U.S. motel industry revenue reached $18.4 billion in 2023, marking a 4.2% increase from 2022.
- Global motel market size was valued at $85.6 billion in 2022 and is projected to grow to $112.3 billion by 2030 at a CAGR of 3.4%.
- U.S. motels accounted for 12% of total lodging revenue in 2023, totaling $22.1 billion including ancillary services.
- Average annual revenue per U.S. motel establishment was $1.27 million in 2022.
- Motel revenue in Europe grew by 5.8% year-over-year in 2023, reaching €14.2 billion.
- U.S. roadside motel segment generated $9.8 billion in 2023, up 6.1% from pre-pandemic levels.
- Motel industry market share in the U.S. lodging sector stood at 8.7% in 2023 with $19.3 billion.
- Projected U.S. motel revenue for 2024 is $20.1 billion, driven by domestic travel recovery.
- Independent motels in the U.S. contributed $7.4 billion to industry revenue in 2022.
- Asia-Pacific motel market revenue hit $32.7 billion in 2023, with China leading at 45% share.
- U.S. motel chains like Motel 6 reported $2.1 billion in system-wide revenue for 2023.
- Total U.S. motel industry revenue grew at a CAGR of 2.9% from 2018 to 2023.
- Budget motel revenue in the U.S. Midwest region was $4.2 billion in 2023.
- U.S. motel revenue per available room (RevPAR) averaged $45.30 in 2023.
- Latin America motel market size estimated at $6.8 billion in 2023, growing 4.1% YoY.
- U.S. motel franchise revenue totaled $11.6 billion in 2023.
- Annual revenue for U.S. motels in highway corridors reached $5.9 billion in 2022.
- Motel industry revenue in Canada was CAD 3.2 billion in 2023.
- U.S. economy motel segment revenue surged 7.3% to $14.5 billion in 2023.
- Global no-frills motel revenue projected at $45.2 billion by 2028.
- U.S. motel revenue from trucker stays was $1.8 billion in 2023.
- Motel revenue growth in Australia was 3.9% to AUD 2.1 billion in 2023.
- U.S. independent motel revenue per property averaged $850,000 in 2023.
- Total U.S. motel industry revenue CAGR forecast 3.1% through 2028.
- Motel revenue in the U.S. South region hit $6.7 billion in 2023.
- Extended-stay motels contributed $3.4 billion to U.S. revenue in 2023.
- U.S. motel online booking revenue was $4.9 billion in 2023.
- Motel industry revenue in Texas alone was $2.3 billion in 2023.
- U.S. pet-friendly motel revenue segment reached $1.2 billion in 2023.
- Motel revenue from corporate contracts totaled $2.8 billion U.S. in 2023.
Revenue and Market Size Interpretation
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