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
1U.S. hotel industry employed 6.2 million workers in 2023
Verified2Hotel employment grew 4.1% to 6.2 million jobs in 2023
Verified3Housekeeping staff turnover rate was 112% in U.S. hotels in 2023
Verified4Average hourly wage for hotel front desk clerks rose to $17.45 in 2023
Directional5U.S. hotels added 200,000 jobs in 2023
Single source6Food service workers in hotels earned median $15.80/hour in 2023
Verified71.8 million direct hotel jobs supported 5.2 million indirect jobs in 2023
Verified8Hotel managers average salary was $65,320 annually in 2023
Verified9Labor costs as % of revenue averaged 32.8% in U.S. hotels 2023
Directional1045% of U.S. hotels reported staffing shortages in 2023 survey
Single source11Housekeepers median wage $14.25/hour, up 6.2% in 2023
Verified12U.S. hotel industry female workforce participation at 52.3% in 2023
Verified13Part-time workers comprised 28.4% of hotel staff in 2023
Verified14Training hours per employee averaged 24.6 in U.S. hotels 2023
Directional1562% of hotels increased wages to attract talent in 2023
Single source16Benefits costs rose 7.1% for hotel employees in 2023
Verified17Minority representation in hotel management reached 41% in 2023
Verified18Overtime hours averaged 4.2% of total paid hours in 2023
Verified19Hotel recruitment costs per hire averaged $4,200 in 2023
Directional20Employee satisfaction scores averaged 76% in U.S. hotels 2023
Single source21Seasonal hiring peaked at 1.2 million in summer 2023
Verified22Retention rate for front-line staff improved to 68% in 2023
Verified2335% of hotels used agencies for staffing in 2023
Verified24Average tenure for hotel GMs was 4.8 years in 2023
Directional25Wage growth for non-managers was 5.9% in 2023
Single source26U.S. hotels supported $295 billion in total economic output in 2023
VerifiedEmployment 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
1In 2023, U.S. hotels achieved a record total revenue of $239.7 billion, marking a 7.2% increase from 2022
Verified2U.S. hotel industry net operating income reached $70.4 billion in 2023, up 11.5% year-over-year
Verified3Average daily rate (ADR) for U.S. hotels averaged $162.14 in 2023, a 3.8% increase from 2022
Verified4RevPAR for U.S. hotels hit $117.91 in 2023, surpassing pre-pandemic levels by 1.2%
Directional5U.S. hotel profit margins improved to 35.2% in 2023 from 32.1% in 2022
Single source6Total U.S. hotel GOPPAR (Gross Operating Profit Per Available Room) was $105.20 in 2023
Verified7Luxury segment RevPAR grew 4.1% to $285.40 in 2023
Verified8Upscale hotels saw ADR increase by 4.5% to $178.60 in 2023
Verified9U.S. hotels collected $25.6 billion in total fees and surcharges in 2023
Directional10EBITDA for U.S. hotel owners rose 12.3% to $45.2 billion in 2023
Single source11Midscale hotels reported 5.2% RevPAR growth in 2023
Verified12Economy segment GOP rose 8.7% year-over-year in 2023
Verified13U.S. hotel capital expenditures totaled $12.4 billion in 2023
Verified14Hotel transaction volume reached $28.7 billion in 2023, up 15% from 2022
Directional15Average hotel cap rates compressed to 8.2% in 2023
Single source16U.S. hotels generated $8.9 billion in parking revenue in 2023
Verified17Food and beverage revenue per available room was $42.10 in 2023
Verified18Total U.S. hotel tax revenue contributed $18.2 billion to local governments in 2023
Verified19Independent hotels saw 6.8% RevPAR growth in 2023
Directional20Branded hotels outperformed independents by 2.1% in profit growth in 2023
Single source21U.S. hotel debt service coverage ratio averaged 2.45x in 2023
Verified22Total revenue per available room (TRevPAR) reached $158.30 in 2023
Verified23Conference center hotels reported highest margins at 38.9% in 2023
Verified24Resort hotels saw F&B revenue up 9.4% in 2023
Directional25Urban hotels recovered to 95% of 2019 RevPAR levels in 2023
Single source26Suburban hotels grew RevPAR by 7.1% in 2023
Verified27Airport hotels ADR up 5.3% to $192.40 in 2023
Verified28Highway hotels saw strongest economy segment growth at 6.2% RevPAR in 2023
Verified29Downtown markets RevPAR +3.8% in 2023
Directional30Total U.S. hotel revenue labor costs were 32.4% of total expenses in 2023
Single sourceFinancial 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
1Total U.S. hotel room supply stood at 5.37 million rooms in 2023
Verified2Luxury hotels comprised 12.4% of total U.S. room inventory in 2023
Verified3Upper Upscale segment had 1.28 million rooms in 2023
Verified48,456 new hotel rooms opened in December 2023
Directional5Upscale hotels represent 22% of U.S. market rooms
Single source6Total branded rooms: 4.92 million, independents 450,000 in 2023
Verified7Extended-stay segment grew to 850,000 rooms by 2023
Verified8Top 10 markets hold 28% of national room supply in 2023
Verified9Florida added most new rooms with 15,000 in 2023
Directional10Texas hotel supply reached 520,000 rooms in 2023
Single source11Convention hotels total 1.1 million rooms nationally in 2023
Verified12Boutique hotels numbered 2,400 properties with 180,000 rooms in 2023
Verified13Urban areas host 45% of total U.S. hotel rooms in 2023
Verified14Resort destinations supply grew 2.1% in 2023
Directional15Airport-adjacent hotels: 650,000 rooms in 2023
Single source16Economy segment largest at 1.6 million rooms (30%)
Verified17Midscale hotels 1.45 million rooms, 27% share in 2023
Verified18Under-construction pipeline: 540,000 rooms as of 2023
Verified19Marriott leads with 1.2 million U.S. rooms in 2023
Directional20Hilton portfolio 950,000 rooms in U.S. 2023
Single source21IHG has 580,000 U.S. rooms in 2023
Verified22Wyndham 520,000 rooms, Choice 450,000 in 2023 U.S.
Verified23Total hotel properties: 54,200 in U.S. 2023
Verified24Average hotel size 99 rooms per property in 2023
Directional25Vegas market largest with 87,000 rooms in 2023
Single source26NYC hotel supply 120,000 rooms in 2023
VerifiedMarket 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
1National U.S. hotel occupancy rate reached 63.4% in 2023, up 1.4 points from 2022
Verified2December 2023 U.S. hotel occupancy was 52.9%, highest for any December since 2019
Verified3Luxury segment occupancy averaged 68.2% in 2023
Verified4Upper Upscale hotels hit 65.7% occupancy in 2023
Directional5U.S. hotel demand totaled 1.14 billion room nights in 2023
Single source6RevPAR index for U.S. hotels vs. 2019 was 101.2% in 2023
Verified7Weekend occupancy outperformed weekdays by 4.2 points nationally in 2023
Verified8Q4 2023 U.S. occupancy rose 2.1% to 61.8%
Verified9Independent hotels occupancy at 59.3% in 2023, trailing chains by 5 points
Directional10Resort markets occupancy recovered to 67.1% in 2023
Single source11Urban occupancy improved 2.8 points to 62.4% in 2023
Verified12Airport hotels occupancy up to 64.9% in 2023
Verified13Downtown convention centers hit 58.2% occupancy in 2023
Verified14Small metro markets occupancy +3.1% YoY in 2023
Directional15Top 25 U.S. markets average occupancy 64.1% in 2023
Single source16Upscale extended-stay occupancy at 71.4% in 2023
Verified17Economy hotels occupancy declined 0.8 points to 60.2% in 2023
Verified18Midscale occupancy stable at 62.7% throughout 2023
Verified19U.S. hotels saw 2.1% YoY occupancy growth in group demand in 2023
Directional20Transient demand drove 85% of total room nights in 2023 U.S. hotels
Single source21RevPAR for top markets grew 3.2% in 2023
Verified22National ADR index vs. 2019 reached 105.4% in 2023
Verified23U.S. hotel supply grew 1.8% or 92,000 rooms in 2023
Verified24December 2023 RevPAR up 3.7% to $105.42 nationally
Directional25Q1 2024 occupancy forecasted at 62.9%
Single sourceOccupancy 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
152% of U.S. leisure travelers booked hotels via OTAs in 2023
Verified268% of business travelers prefer loyalty programs for hotel choice in 2023
Verified3Average U.S. hotel guest length of stay 2.1 nights in 2023
Verified441% of guests used mobile check-in in U.S. hotels 2023
Directional5Millennials comprised 32% of U.S. hotel guests in 2023
Single source673% of Gen Z prioritize sustainability in hotel selection 2023
Verified7Contactless payments used by 82% of U.S. hotel guests in 2023
Verified855% of leisure demand from domestic travelers in 2023
Verified9Group business recovered to 18% of total demand in 2023
Directional1029% increase in solo female travelers booking hotels in 2023
Single source11Average booking lead time shortened to 28 days in 2023
Verified1264% of guests rate WiFi as most important amenity in 2023 survey
Verified13Bleisure travel accounted for 15% of business stays in 2023
Verified1447% of U.S. travelers seek experiential hotels in 2023
Directional15Pet-friendly rooms booked 22% more in 2023
Single source1676% satisfaction with cleanliness post-pandemic in 2023
Verified17EV charging stations at 12% of hotels in 2023
Verified18Direct bookings rose to 42% via hotel websites in 2023
Verified1935% of guests prefer all-inclusive packages in 2023
Directional20Family travel demand up 8% for multi-gen trips in 2023
Single source2161% use reviews before booking U.S. hotels 2023
Verified22Wellness amenities influenced 53% of bookings in 2023
Verified23Remote work stays averaged 5.3 nights in 2023
Verified2424% growth in food delivery partnerships with hotels 2023
Directional25Loyalty redemptions up 14% in U.S. hotels 2023
Single sourceTrends 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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