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
1Leisure transient segment drove 42% of US hotel demand in 2023.
Verified2Business transient demand grew 4.2% in US hotels in 2023.
Verified3Group demand in US hotels increased 8.7% year-over-year in 2023.
Verified465% of US travelers used mobile apps for hotel bookings in 2023.
Directional5Average length of stay in US hotels was 2.1 nights in 2023.
Single source628% of US hotel guests were international in 2023, up from 18% in 2022.
Verified7Millennials represented 38% of US hotel guests in 2023.
Verified872% of US business travelers prefer hotels with EV charging in 2023.
Verified9Contactless check-in adopted by 85% of US hotels in 2023.
Directional10US hotel online bookings accounted for 76% of total reservations in 2023.
Single source11Sustainable practices influenced 68% of US travelers' hotel choices in 2023.
Verified1241% of US leisure guests prioritized loyalty program perks in 2023.
Verified13Voice search used by 25% of US hotel bookers in 2023.
Verified14US hotel guests aged 35-54 spent 15% more per stay in 2023.
Directional1559% of US corporate travelers valued wellness amenities in 2023.
Single source16OTA bookings dropped to 45% of US hotel reservations in 2023.
Verified1782% of US millennials seek personalized hotel experiences in 2023.
Verified18Pet-friendly rooms booked 20% more in US hotels in 2023.
Verified19AI chatbots handled 35% of US hotel inquiries in 2023.
Directional2074% of US travelers want hotels with sustainability certifications 2023.
Single source21Direct bookings rose to 35% via hotel websites 2023.
Verified2251% of US boomers prefer hotels with fitness centers 2023.
Verified23US hotel app downloads up 18% in 2023.
Verified24Workation stays increased 25% in US hotels 2023.
Directional2563% of US guests review hygiene protocols pre-booking 2023.
Single source26VR tours viewed by 19% of US luxury seekers 2023.
Verified27Loyalty redemptions drove 22% of US stays 2023.
VerifiedConsumer 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
1The US hotel industry employed 6.2 million workers in 2023.
Verified2Hotels supported 1 in 11 US jobs with 6.2 million total in 2023.
Verified3US hotel direct employment was 5.6 million in 2023.
Verified4Hotel payroll reached $121 billion in the US in 2023.
Directional570% of US hotel employees are people of color in 2023.
Single source6Frontline hotel workers earned median wage of $20.49/hour in 2023.
Verified7US hotel turnover rate averaged 45.2% in 2023.
Verified855% of US hotels reported staffing shortages in 2023.
Verified9US hotel industry supported 2.3 million indirect jobs in 2023.
Directional1045% of US hotel managers reported labor shortages in housekeeping in 2023.
Single source11US hotel F&B staff turnover was 52% in 2023.
Verified12Average US hotel employee benefits cost rose 4% to $8,200 in 2023.
Verified1362% of US hotels increased wages by 5-10% in 2023.
Verified14Women comprise 55% of US hotel workforce in 2023.
Directional15US hotels spent $15 billion on training programs in 2023.
Single source1678% of US hoteliers faced recruitment challenges in 2023.
Verified17Gen Z accounted for 22% of US hotel job applicants in 2023.
Verified18US hotel employment at 5.8 million direct jobs Q4 2023.
Verified19Leisure/hospitality sector added 20,000 jobs monthly avg 2023.
Directional2048% of US hotels raised minimum wage to $15+ in 2023.
Single source21US hotel labor costs up 7.2% as % of revenue 2023.
Verified2235% of US hotel staff work part-time in 2023.
Verified23Hispanic workers 28% of US hotel employees 2023.
Verified24Training hours per US hotel employee averaged 32 in 2023.
Directional25Retention bonuses offered by 42% of US hotels 2023.
Single source2667% of US Gen Z workers seek flexible scheduling.
VerifiedEmployment & 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
1In 2023, the US hotel industry generated total revenue of $239.7 billion, up 5.9% from 2022 levels.
Verified2US hotel revenue per available room (RevPAR) reached $110.52 in 2023, a 6.7% increase year-over-year.
Verified3Total US hotel room supply stood at 5.5 million rooms in 2023, contributing to $23.5 billion in property-level taxes.
Verified4The lodging sector's GDP contribution in the US was $239.7 billion in 2023, representing 1.1% of national GDP.
Directional5US hotels collected $17.4 billion in state and local taxes in 2023, excluding sales and lodging taxes.
Single source6Average daily rate (ADR) for US hotels averaged $159.13 in 2023, rising 3.2% from 2022.
Verified7Luxury segment US hotel RevPAR grew 8.1% to $248.45 in 2023.
Verified8Upper upscale US hotels saw RevPAR increase of 7.4% to $141.22 in 2023.
Verified9US hotel industry's total economic impact was $757.3 billion in direct, indirect, and induced effects in 2023.
Directional10Group revenue for US hotels reached $104.3 billion in 2023, up 11.6% from 2022.
Single source11In 2023, US hotel RevPAR grew 6.4% to $104.61 through November.
Verified12Total US hotel revenue hit $208 billion in 2023 YTD.
Verified13Upscale US hotel ADR rose 4.1% to $134.78 in 2023.
Verified14US hotels generated $42 billion in food & beverage revenue in 2023.
Directional15Total output from US hotels was $428 billion in 2023.
Single source16Midscale US RevPAR increased 5.2% to $68.45 in 2023.
Verified17Independent US hotels RevPAR up 4.8% in 2023.
Verified18US chain scales RevPAR growth averaged 7.1% in 2023.
Verified19US hotel revenue from experiences grew 12% in 2023.
Directional20US hotel profit margins averaged 28.4% GOPPAR in 2023.
Single source21Total US lodging taxes collected $42 billion in 2023.
Verified22Franchise fees contributed $8.5 billion to US hotel revenue in 2023.
Verified23US hotel management fees totaled $4.2 billion in 2023.
Verified24Central reservation system fees $1.8 billion for US hotels in 2023.
Directional25US hotel EBITDA reached $55 billion in 2023.
Single source26Branded residence segment revenue up 9% in US 2023.
Verified27US hotel RevPAR forecast for 2024 at 2.1% growth.
VerifiedMarket 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
1US national hotel occupancy rate averaged 63.8% in 2023.
Verified2Upper upscale segment occupancy in US reached 68.4% in 2023.
Verified3Luxury US hotels achieved 70.2% occupancy in 2023.
Verified4Economy segment US occupancy was 59.1% in 2023.
Directional5US hotel RevPAR index against 2019 pre-pandemic levels was 98.5% in 2023.
Single source6Top 25 US markets by RevPAR saw 7.2% growth in 2023.
Verified7US hotel demand totaled 1.15 billion room nights in 2023.
Verified8Weekend occupancy for US hotels averaged 67.3% in 2023.
Verified9US ADR index vs. 2019 was 105.3% in 2023.
Directional10Occupancy in US resort hotels reached 65.4% in 2023.
Single source11Resort US occupancy hit 64.8% in 2023.
Verified12US urban hotel occupancy recovered to 62.1% in 2023.
Verified13Suburban US hotels occupancy at 65.7% in 2023.
Verified14US highway hotel occupancy averaged 60.3% in 2023.
Directional15Airport US hotels saw 61.9% occupancy in 2023.
Single source16US RevPAR for top markets like Oahu grew 12.3% in 2023.
Verified17National US occupancy penetration index was 100.2% in 2023.
Verified18US hotel demand growth was 3.1% in 2023.
Verified19ADR growth in US convention-center hotels was 2.8% in 2023.
Directional20US hotel occupancy for Q1 2024 at 59.2%.
Single source21US RevPAR index vs 2019 at 97% in Q1 2024.
Verified22US ADR up 1.4% to $162.05 in Q1 2024.
Verified23Luxury US RevPAR grew 0.8% in Q1 2024.
Verified24US group RevPAR up 2.7% in Q1 2024.
Directional25Demand growth slowed to 1.2% in US Q1 2024.
Single source26US weekend occupancy 63.4% in Q1 2024.
Verified27US supply growth 2.1% in Q1 2024.
VerifiedOccupancy & 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
1US hotel supply grew by 1.4% to 5.5 million rooms in 2023.
Verified245,000 new hotel rooms opened in the US in 2023.
Verified3US hotel pipeline includes 3,200 projects with 413,000 rooms as of Q4 2023.
Verified4Upscale segment represents 42% of US hotel construction pipeline in 2023.
Directional5Florida led US states with 15% of national hotel pipeline rooms in 2023.
Single source6New York City had the largest US metro hotel pipeline with 28,000 rooms in 2023.
Verified7US hotel openings totaled 500 properties adding 58,000 rooms in 2023.
Verified8Extended-stay hotels accounted for 12% of US new supply in 2023.
Verified9Independent hotels make up 25% of the US construction pipeline in 2023.
Directional10Texas hotel pipeline included 35,000 rooms across 250 projects in 2023.
Single source11US hotel supply growth slowed to 1.9% in 2023.
Verified1262,000 US hotel rooms were removed from inventory in 2023.
Verified13Upper midscale segment had 18% of US pipeline in 2023.
Verified14California hotel pipeline featured 25,000 rooms in 2023.
Directional15Las Vegas metro pipeline had 22,000 rooms under construction in 2023.
Single source16US luxury hotel pipeline was 8% of total in 2023.
Verified17Orlando led metros with 18% share of US pipeline rooms in 2023.
Verified18Economy US hotels pipeline at 15% in 2023.
Verified191,200 US hotel renovation projects underway in 2023.
Directional20US pipeline now 2,900 projects, 380,000 rooms Q1 2024.
Single source21Upper upscale pipeline 25% of US total in Q1 2024.
Verified22Nevada pipeline 12% of national rooms Q1 2024.
Verified23Phoenix metro pipeline 15,000 rooms Q1 2024.
Verified24US independent pipeline down to 22% Q1 2024.
Directional25Nashville pipeline largest in Southeast Q1 2024.
Single source2652,000 rooms opened US-wide in 2023 full year.
VerifiedSupply & 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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