Although it took three years for the hotel industry to fully recover after the COVID-19 hit, the entire market has picked up the pace of solid growth and is set to reach a new milestone in the following years. According to data presented by Stocklytics.com, the global hotel industry revenue will grow by 9% and hit $446.5 billion in 2024. This figure is expected to grow by $50 billion in the next four years, with the entire market reaching over half a trillion value.

More than 130 Million New Hotel Users in the Next Four Years

Four years after the COVID-19 hit, the hotel industry has not only fully recovered but is thriving, with people worldwide spending more money than ever on hotel accommodation and services. According to a Statista survey, last year alone, tourists, travelers, and business people paid $411 billion on hotel accommodations, or $41 billion more than before the pandemic. This figure is expected to grow by almost 9% and hit $446.5 billion this year. Although the annual growth rate will slow down in the following years, the hotel industry revenue is still expected to increase by an average of $15 billion annually, resulting in a market volume of $508.9 billion by 2028.  

In regional comparison, Asians will remain the biggest spenders in the hotel sector, generating $192 billion or 37% of total market revenue in 2028. North Americans will make up roughly 30% of total revenue that year, or $147 billion, and Europeans follow with $121.6 billion in hotel spending. Statista survey also showed the hotel sector will see a considerable user increase in the following years. In 2024, more than 1.26 billion people will use hotel accommodations and services, the highest number this market has ever seen. However, Statista expects more than 130 million people to flock to the market in the next four years, pushing the total number of users to almost 1.4 billion.

Hotels Stocks Drop Despite Positive Market Outlook

Despite the positive market outlook and an estimated half a trillion-dollar valuation by 2028, the stocks of the biggest hotel groups have dropped in value over the past few months. As the single largest player in the hotel industry, Marriott International’s stock price dropped by $8 billion in the past two months. In March, the market cap of the world’s biggest hotel group was $73.8 billion; now, it’s $65.8.

Statistics show the stock price of Hilton Worldwide, the second-largest company in the market, also decreased, falling from $53.8 billion to $50.1 billion in two months. However, Oriental Land, the third-largest player in the market, saw the biggest stock value drop in this period, falling by almost $12 billion to $46.7 billion as of last week.

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