Beneath the glimmering surface of record-breaking revenues, the U.S. hotel industry in 2023 told a complex story of robust recovery, strategic expansion, and transformative challenges, from generating a staggering $239.7 billion in total revenue and a $757.3 billion total economic impact to navigating labor shortages and evolving guest demands for sustainability and technology.
Key Takeaways
- In 2023, the US hotel industry generated total revenue of $239.7 billion, up 5.9% from 2022 levels.
- US hotel revenue per available room (RevPAR) reached $110.52 in 2023, a 6.7% increase year-over-year.
- Total US hotel room supply stood at 5.5 million rooms in 2023, contributing to $23.5 billion in property-level taxes.
- US national hotel occupancy rate averaged 63.8% in 2023.
- Upper upscale segment occupancy in US reached 68.4% in 2023.
- Luxury US hotels achieved 70.2% occupancy in 2023.
- US hotel supply grew by 1.4% to 5.5 million rooms in 2023.
- 45,000 new hotel rooms opened in the US in 2023.
- US hotel pipeline includes 3,200 projects with 413,000 rooms as of Q4 2023.
- The US hotel industry employed 6.2 million workers in 2023.
- Hotels supported 1 in 11 US jobs with 6.2 million total in 2023.
- US hotel direct employment was 5.6 million in 2023.
- Leisure transient segment drove 42% of US hotel demand in 2023.
- Business transient demand grew 4.2% in US hotels in 2023.
- Group demand in US hotels increased 8.7% year-over-year in 2023.
The US hotel industry achieved strong revenue and job growth in 2023, continuing its post-pandemic recovery.
Consumer Trends & Technology
- Leisure transient segment drove 42% of US hotel demand in 2023.
- Business transient demand grew 4.2% in US hotels in 2023.
- Group demand in US hotels increased 8.7% year-over-year in 2023.
- 65% of US travelers used mobile apps for hotel bookings in 2023.
- Average length of stay in US hotels was 2.1 nights in 2023.
- 28% of US hotel guests were international in 2023, up from 18% in 2022.
- Millennials represented 38% of US hotel guests in 2023.
- 72% of US business travelers prefer hotels with EV charging in 2023.
- Contactless check-in adopted by 85% of US hotels in 2023.
- US hotel online bookings accounted for 76% of total reservations in 2023.
- Sustainable practices influenced 68% of US travelers' hotel choices in 2023.
- 41% of US leisure guests prioritized loyalty program perks in 2023.
- Voice search used by 25% of US hotel bookers in 2023.
- US hotel guests aged 35-54 spent 15% more per stay in 2023.
- 59% of US corporate travelers valued wellness amenities in 2023.
- OTA bookings dropped to 45% of US hotel reservations in 2023.
- 82% of US millennials seek personalized hotel experiences in 2023.
- Pet-friendly rooms booked 20% more in US hotels in 2023.
- AI chatbots handled 35% of US hotel inquiries in 2023.
- 74% of US travelers want hotels with sustainability certifications 2023.
- Direct bookings rose to 35% via hotel websites 2023.
- 51% of US boomers prefer hotels with fitness centers 2023.
- US hotel app downloads up 18% in 2023.
- Workation stays increased 25% in US hotels 2023.
- 63% of US guests review hygiene protocols pre-booking 2023.
- VR tours viewed by 19% of US luxury seekers 2023.
- Loyalty redemptions drove 22% of US stays 2023.
Consumer Trends & Technology Interpretation
The US hotel industry in 2023 reveals a guest who is predominantly a fun-seeking, app-wielding millennial who still means business, values sustainability and a smooth digital experience, and might just bring their pet, their laptop, and an international passport.
Employment & Labor
- The US hotel industry employed 6.2 million workers in 2023.
- Hotels supported 1 in 11 US jobs with 6.2 million total in 2023.
- US hotel direct employment was 5.6 million in 2023.
- Hotel payroll reached $121 billion in the US in 2023.
- 70% of US hotel employees are people of color in 2023.
- Frontline hotel workers earned median wage of $20.49/hour in 2023.
- US hotel turnover rate averaged 45.2% in 2023.
- 55% of US hotels reported staffing shortages in 2023.
- US hotel industry supported 2.3 million indirect jobs in 2023.
- 45% of US hotel managers reported labor shortages in housekeeping in 2023.
- US hotel F&B staff turnover was 52% in 2023.
- Average US hotel employee benefits cost rose 4% to $8,200 in 2023.
- 62% of US hotels increased wages by 5-10% in 2023.
- Women comprise 55% of US hotel workforce in 2023.
- US hotels spent $15 billion on training programs in 2023.
- 78% of US hoteliers faced recruitment challenges in 2023.
- Gen Z accounted for 22% of US hotel job applicants in 2023.
- US hotel employment at 5.8 million direct jobs Q4 2023.
- Leisure/hospitality sector added 20,000 jobs monthly avg 2023.
- 48% of US hotels raised minimum wage to $15+ in 2023.
- US hotel labor costs up 7.2% as % of revenue 2023.
- 35% of US hotel staff work part-time in 2023.
- Hispanic workers 28% of US hotel employees 2023.
- Training hours per US hotel employee averaged 32 in 2023.
- Retention bonuses offered by 42% of US hotels 2023.
- 67% of US Gen Z workers seek flexible scheduling.
Employment & Labor Interpretation
Behind a facade of bustling lobbies and crisp linens, the US hotel industry in 2023 was a frantic engine room, pouring billions into wages and training to plug a leaking talent pipe, all while being powered by a diverse workforce it struggled desperately to keep.
Market Size & Revenue
- In 2023, the US hotel industry generated total revenue of $239.7 billion, up 5.9% from 2022 levels.
- US hotel revenue per available room (RevPAR) reached $110.52 in 2023, a 6.7% increase year-over-year.
- Total US hotel room supply stood at 5.5 million rooms in 2023, contributing to $23.5 billion in property-level taxes.
- The lodging sector's GDP contribution in the US was $239.7 billion in 2023, representing 1.1% of national GDP.
- US hotels collected $17.4 billion in state and local taxes in 2023, excluding sales and lodging taxes.
- Average daily rate (ADR) for US hotels averaged $159.13 in 2023, rising 3.2% from 2022.
- Luxury segment US hotel RevPAR grew 8.1% to $248.45 in 2023.
- Upper upscale US hotels saw RevPAR increase of 7.4% to $141.22 in 2023.
- US hotel industry's total economic impact was $757.3 billion in direct, indirect, and induced effects in 2023.
- Group revenue for US hotels reached $104.3 billion in 2023, up 11.6% from 2022.
- In 2023, US hotel RevPAR grew 6.4% to $104.61 through November.
- Total US hotel revenue hit $208 billion in 2023 YTD.
- Upscale US hotel ADR rose 4.1% to $134.78 in 2023.
- US hotels generated $42 billion in food & beverage revenue in 2023.
- Total output from US hotels was $428 billion in 2023.
- Midscale US RevPAR increased 5.2% to $68.45 in 2023.
- Independent US hotels RevPAR up 4.8% in 2023.
- US chain scales RevPAR growth averaged 7.1% in 2023.
- US hotel revenue from experiences grew 12% in 2023.
- US hotel profit margins averaged 28.4% GOPPAR in 2023.
- Total US lodging taxes collected $42 billion in 2023.
- Franchise fees contributed $8.5 billion to US hotel revenue in 2023.
- US hotel management fees totaled $4.2 billion in 2023.
- Central reservation system fees $1.8 billion for US hotels in 2023.
- US hotel EBITDA reached $55 billion in 2023.
- Branded residence segment revenue up 9% in US 2023.
- US hotel RevPAR forecast for 2024 at 2.1% growth.
Market Size & Revenue Interpretation
While travelers felt the squeeze of rising rates, the US hotel industry used 2023's $240 billion revenue, hefty taxes, and a $757 billion economic footprint to prove it wasn't just making beds—it was making bank.
Occupancy & Performance Metrics
- US national hotel occupancy rate averaged 63.8% in 2023.
- Upper upscale segment occupancy in US reached 68.4% in 2023.
- Luxury US hotels achieved 70.2% occupancy in 2023.
- Economy segment US occupancy was 59.1% in 2023.
- US hotel RevPAR index against 2019 pre-pandemic levels was 98.5% in 2023.
- Top 25 US markets by RevPAR saw 7.2% growth in 2023.
- US hotel demand totaled 1.15 billion room nights in 2023.
- Weekend occupancy for US hotels averaged 67.3% in 2023.
- US ADR index vs. 2019 was 105.3% in 2023.
- Occupancy in US resort hotels reached 65.4% in 2023.
- Resort US occupancy hit 64.8% in 2023.
- US urban hotel occupancy recovered to 62.1% in 2023.
- Suburban US hotels occupancy at 65.7% in 2023.
- US highway hotel occupancy averaged 60.3% in 2023.
- Airport US hotels saw 61.9% occupancy in 2023.
- US RevPAR for top markets like Oahu grew 12.3% in 2023.
- National US occupancy penetration index was 100.2% in 2023.
- US hotel demand growth was 3.1% in 2023.
- ADR growth in US convention-center hotels was 2.8% in 2023.
- US hotel occupancy for Q1 2024 at 59.2%.
- US RevPAR index vs 2019 at 97% in Q1 2024.
- US ADR up 1.4% to $162.05 in Q1 2024.
- Luxury US RevPAR grew 0.8% in Q1 2024.
- US group RevPAR up 2.7% in Q1 2024.
- Demand growth slowed to 1.2% in US Q1 2024.
- US weekend occupancy 63.4% in Q1 2024.
- US supply growth 2.1% in Q1 2024.
Occupancy & Performance Metrics Interpretation
The hotel industry is slowly rediscovering its pre-pandemic stride, but it turns out that even a modest recovery has the luxury segment practically living it up while the economy sector is still packing a slightly lighter suitcase.
Supply & Development
- US hotel supply grew by 1.4% to 5.5 million rooms in 2023.
- 45,000 new hotel rooms opened in the US in 2023.
- US hotel pipeline includes 3,200 projects with 413,000 rooms as of Q4 2023.
- Upscale segment represents 42% of US hotel construction pipeline in 2023.
- Florida led US states with 15% of national hotel pipeline rooms in 2023.
- New York City had the largest US metro hotel pipeline with 28,000 rooms in 2023.
- US hotel openings totaled 500 properties adding 58,000 rooms in 2023.
- Extended-stay hotels accounted for 12% of US new supply in 2023.
- Independent hotels make up 25% of the US construction pipeline in 2023.
- Texas hotel pipeline included 35,000 rooms across 250 projects in 2023.
- US hotel supply growth slowed to 1.9% in 2023.
- 62,000 US hotel rooms were removed from inventory in 2023.
- Upper midscale segment had 18% of US pipeline in 2023.
- California hotel pipeline featured 25,000 rooms in 2023.
- Las Vegas metro pipeline had 22,000 rooms under construction in 2023.
- US luxury hotel pipeline was 8% of total in 2023.
- Orlando led metros with 18% share of US pipeline rooms in 2023.
- Economy US hotels pipeline at 15% in 2023.
- 1,200 US hotel renovation projects underway in 2023.
- US pipeline now 2,900 projects, 380,000 rooms Q1 2024.
- Upper upscale pipeline 25% of US total in Q1 2024.
- Nevada pipeline 12% of national rooms Q1 2024.
- Phoenix metro pipeline 15,000 rooms Q1 2024.
- US independent pipeline down to 22% Q1 2024.
- Nashville pipeline largest in Southeast Q1 2024.
- 52,000 rooms opened US-wide in 2023 full year.
Supply & Development Interpretation
The industry is furiously building a slightly bigger nest, but with fancier twigs, as it strives to replace the rooms it's simultaneously demolishing.
Sources & References
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