As travelers book vacations, business trips, and bleisure getaways, America’s hotels are ringing up record-breaking revenues, with staggering totals across nearly every metric telling the story of an industry that has not only recovered but is now powerfully rewriting the rules of the game.
Key Takeaways
- In 2023, U.S. hotels achieved a record total revenue of $239.7 billion, marking a 7.2% increase from 2022
- U.S. hotel industry net operating income reached $70.4 billion in 2023, up 11.5% year-over-year
- Average daily rate (ADR) for U.S. hotels averaged $162.14 in 2023, a 3.8% increase from 2022
- National U.S. hotel occupancy rate reached 63.4% in 2023, up 1.4 points from 2022
- December 2023 U.S. hotel occupancy was 52.9%, highest for any December since 2019
- Luxury segment occupancy averaged 68.2% in 2023
- U.S. hotel industry employed 6.2 million workers in 2023
- Hotel employment grew 4.1% to 6.2 million jobs in 2023
- Housekeeping staff turnover rate was 112% in U.S. hotels in 2023
- Total U.S. hotel room supply stood at 5.37 million rooms in 2023
- Luxury hotels comprised 12.4% of total U.S. room inventory in 2023
- Upper Upscale segment had 1.28 million rooms in 2023
- 52% of U.S. leisure travelers booked hotels via OTAs in 2023
- 68% of business travelers prefer loyalty programs for hotel choice in 2023
- Average U.S. hotel guest length of stay 2.1 nights in 2023
The U.S. hotel industry saw record revenue and profits in 2023.
Employment
- U.S. hotel industry employed 6.2 million workers in 2023
- Hotel employment grew 4.1% to 6.2 million jobs in 2023
- Housekeeping staff turnover rate was 112% in U.S. hotels in 2023
- Average hourly wage for hotel front desk clerks rose to $17.45 in 2023
- U.S. hotels added 200,000 jobs in 2023
- Food service workers in hotels earned median $15.80/hour in 2023
- 1.8 million direct hotel jobs supported 5.2 million indirect jobs in 2023
- Hotel managers average salary was $65,320 annually in 2023
- Labor costs as % of revenue averaged 32.8% in U.S. hotels 2023
- 45% of U.S. hotels reported staffing shortages in 2023 survey
- Housekeepers median wage $14.25/hour, up 6.2% in 2023
- U.S. hotel industry female workforce participation at 52.3% in 2023
- Part-time workers comprised 28.4% of hotel staff in 2023
- Training hours per employee averaged 24.6 in U.S. hotels 2023
- 62% of hotels increased wages to attract talent in 2023
- Benefits costs rose 7.1% for hotel employees in 2023
- Minority representation in hotel management reached 41% in 2023
- Overtime hours averaged 4.2% of total paid hours in 2023
- Hotel recruitment costs per hire averaged $4,200 in 2023
- Employee satisfaction scores averaged 76% in U.S. hotels 2023
- Seasonal hiring peaked at 1.2 million in summer 2023
- Retention rate for front-line staff improved to 68% in 2023
- 35% of hotels used agencies for staffing in 2023
- Average tenure for hotel GMs was 4.8 years in 2023
- Wage growth for non-managers was 5.9% in 2023
- U.S. hotels supported $295 billion in total economic output in 2023
Employment Interpretation
The hotel industry is a vibrant economic engine, adding jobs and raising wages at a healthy clip, but it’s still struggling to solve a core equation: how to build a stable, satisfied workforce when the revolving door spins fastest for those who literally make the beds.
Financial Performance
- In 2023, U.S. hotels achieved a record total revenue of $239.7 billion, marking a 7.2% increase from 2022
- U.S. hotel industry net operating income reached $70.4 billion in 2023, up 11.5% year-over-year
- Average daily rate (ADR) for U.S. hotels averaged $162.14 in 2023, a 3.8% increase from 2022
- RevPAR for U.S. hotels hit $117.91 in 2023, surpassing pre-pandemic levels by 1.2%
- U.S. hotel profit margins improved to 35.2% in 2023 from 32.1% in 2022
- Total U.S. hotel GOPPAR (Gross Operating Profit Per Available Room) was $105.20 in 2023
- Luxury segment RevPAR grew 4.1% to $285.40 in 2023
- Upscale hotels saw ADR increase by 4.5% to $178.60 in 2023
- U.S. hotels collected $25.6 billion in total fees and surcharges in 2023
- EBITDA for U.S. hotel owners rose 12.3% to $45.2 billion in 2023
- Midscale hotels reported 5.2% RevPAR growth in 2023
- Economy segment GOP rose 8.7% year-over-year in 2023
- U.S. hotel capital expenditures totaled $12.4 billion in 2023
- Hotel transaction volume reached $28.7 billion in 2023, up 15% from 2022
- Average hotel cap rates compressed to 8.2% in 2023
- U.S. hotels generated $8.9 billion in parking revenue in 2023
- Food and beverage revenue per available room was $42.10 in 2023
- Total U.S. hotel tax revenue contributed $18.2 billion to local governments in 2023
- Independent hotels saw 6.8% RevPAR growth in 2023
- Branded hotels outperformed independents by 2.1% in profit growth in 2023
- U.S. hotel debt service coverage ratio averaged 2.45x in 2023
- Total revenue per available room (TRevPAR) reached $158.30 in 2023
- Conference center hotels reported highest margins at 38.9% in 2023
- Resort hotels saw F&B revenue up 9.4% in 2023
- Urban hotels recovered to 95% of 2019 RevPAR levels in 2023
- Suburban hotels grew RevPAR by 7.1% in 2023
- Airport hotels ADR up 5.3% to $192.40 in 2023
- Highway hotels saw strongest economy segment growth at 6.2% RevPAR in 2023
- Downtown markets RevPAR +3.8% in 2023
- Total U.S. hotel revenue labor costs were 32.4% of total expenses in 2023
Financial Performance Interpretation
The American hotel industry, in a masterclass of fee-laden resilience, turned traveler thirst for normalcy into record profits, proving that even at $162 a night, the true luxury is being able to afford to leave.
Market Size and Segments
- Total U.S. hotel room supply stood at 5.37 million rooms in 2023
- Luxury hotels comprised 12.4% of total U.S. room inventory in 2023
- Upper Upscale segment had 1.28 million rooms in 2023
- 8,456 new hotel rooms opened in December 2023
- Upscale hotels represent 22% of U.S. market rooms
- Total branded rooms: 4.92 million, independents 450,000 in 2023
- Extended-stay segment grew to 850,000 rooms by 2023
- Top 10 markets hold 28% of national room supply in 2023
- Florida added most new rooms with 15,000 in 2023
- Texas hotel supply reached 520,000 rooms in 2023
- Convention hotels total 1.1 million rooms nationally in 2023
- Boutique hotels numbered 2,400 properties with 180,000 rooms in 2023
- Urban areas host 45% of total U.S. hotel rooms in 2023
- Resort destinations supply grew 2.1% in 2023
- Airport-adjacent hotels: 650,000 rooms in 2023
- Economy segment largest at 1.6 million rooms (30%)
- Midscale hotels 1.45 million rooms, 27% share in 2023
- Under-construction pipeline: 540,000 rooms as of 2023
- Marriott leads with 1.2 million U.S. rooms in 2023
- Hilton portfolio 950,000 rooms in U.S. 2023
- IHG has 580,000 U.S. rooms in 2023
- Wyndham 520,000 rooms, Choice 450,000 in 2023 U.S.
- Total hotel properties: 54,200 in U.S. 2023
- Average hotel size 99 rooms per property in 2023
- Vegas market largest with 87,000 rooms in 2023
- NYC hotel supply 120,000 rooms in 2023
Market Size and Segments Interpretation
The U.S. hotel industry in 2023 was a sprawling, stratified empire where Marriott and Hilton rule a kingdom of 5.37 million rooms, though its heart still beats in the budget-friendly, 1.6-million-room economy sector, proving that while we may dream of luxury, we most often book a sensible reality.
Occupancy and RevPAR
- National U.S. hotel occupancy rate reached 63.4% in 2023, up 1.4 points from 2022
- December 2023 U.S. hotel occupancy was 52.9%, highest for any December since 2019
- Luxury segment occupancy averaged 68.2% in 2023
- Upper Upscale hotels hit 65.7% occupancy in 2023
- U.S. hotel demand totaled 1.14 billion room nights in 2023
- RevPAR index for U.S. hotels vs. 2019 was 101.2% in 2023
- Weekend occupancy outperformed weekdays by 4.2 points nationally in 2023
- Q4 2023 U.S. occupancy rose 2.1% to 61.8%
- Independent hotels occupancy at 59.3% in 2023, trailing chains by 5 points
- Resort markets occupancy recovered to 67.1% in 2023
- Urban occupancy improved 2.8 points to 62.4% in 2023
- Airport hotels occupancy up to 64.9% in 2023
- Downtown convention centers hit 58.2% occupancy in 2023
- Small metro markets occupancy +3.1% YoY in 2023
- Top 25 U.S. markets average occupancy 64.1% in 2023
- Upscale extended-stay occupancy at 71.4% in 2023
- Economy hotels occupancy declined 0.8 points to 60.2% in 2023
- Midscale occupancy stable at 62.7% throughout 2023
- U.S. hotels saw 2.1% YoY occupancy growth in group demand in 2023
- Transient demand drove 85% of total room nights in 2023 U.S. hotels
- RevPAR for top markets grew 3.2% in 2023
- National ADR index vs. 2019 reached 105.4% in 2023
- U.S. hotel supply grew 1.8% or 92,000 rooms in 2023
- December 2023 RevPAR up 3.7% to $105.42 nationally
- Q1 2024 occupancy forecasted at 62.9%
Occupancy and RevPAR Interpretation
Even as inflation tries to claim victory, the numbers don’t lie: Americans are still choosing to check in, proving that the only thing they love more than complaining about hotel prices is paying them to get away from home.
Trends and Guest Preferences
- 52% of U.S. leisure travelers booked hotels via OTAs in 2023
- 68% of business travelers prefer loyalty programs for hotel choice in 2023
- Average U.S. hotel guest length of stay 2.1 nights in 2023
- 41% of guests used mobile check-in in U.S. hotels 2023
- Millennials comprised 32% of U.S. hotel guests in 2023
- 73% of Gen Z prioritize sustainability in hotel selection 2023
- Contactless payments used by 82% of U.S. hotel guests in 2023
- 55% of leisure demand from domestic travelers in 2023
- Group business recovered to 18% of total demand in 2023
- 29% increase in solo female travelers booking hotels in 2023
- Average booking lead time shortened to 28 days in 2023
- 64% of guests rate WiFi as most important amenity in 2023 survey
- Bleisure travel accounted for 15% of business stays in 2023
- 47% of U.S. travelers seek experiential hotels in 2023
- Pet-friendly rooms booked 22% more in 2023
- 76% satisfaction with cleanliness post-pandemic in 2023
- EV charging stations at 12% of hotels in 2023
- Direct bookings rose to 42% via hotel websites in 2023
- 35% of guests prefer all-inclusive packages in 2023
- Family travel demand up 8% for multi-gen trips in 2023
- 61% use reviews before booking U.S. hotels 2023
- Wellness amenities influenced 53% of bookings in 2023
- Remote work stays averaged 5.3 nights in 2023
- 24% growth in food delivery partnerships with hotels 2023
- Loyalty redemptions up 14% in U.S. hotels 2023
Trends and Guest Preferences Interpretation
In a landscape where loyalty programs woo the business traveler and Gen Z demands a green room, hotels now find themselves juggling the whims of spontaneous weekenders, bleisure pioneers, and pet parents, all while trying to keep the Wi-Fi strong and the direct bookings flowing.
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