The ongoing transformation in the lodging construction market emphasizes innovation and sustainability.
The global lodging construction and renovation market is set for substantial growth, with projections indicating an increase from USD 629.5 billion to USD 1.36 trillion. This growth is driven by rising consumer demand for new hotels, energy-efficient designs, and increased global travel. Hotel types such as full-service hotels have significant market shares, and regions like the Southern U.S. are hotspots for development despite economic challenges. Major construction companies dominate the market, focusing on innovation to navigate challenges ahead.
The global lodging construction and renovation market is on a significant growth trajectory, projected to surge from USD 659.7 billion in 2025 to USD 1.36 trillion by 2034. With an estimated market value of USD 629.5 billion in 2024, this industry is set to expand at a compound annual growth rate (CAGR) of 8.5% over the next decade.
This thriving market is categorized into several segments, including structural materials, building envelope materials, interior finish materials, and MEP (Mechanical, Electrical, and Plumbing) materials and equipment. The structural materials segment, which held approximately 35% of the market share in 2024, is forecasted to grow at a CAGR of over 8% through 2034.
Additionally, the lodging market is split by hotel types, consisting of full-service hotels, limited-service hotels, specialty hotels, and alternative accommodations. Full-service hotels alone represented 35% of the market share in 2024 and are also expected to grow at a similar CAGR of over 8% from 2025 to 2034.
The market can be segmented according to project types, including new hotel construction, hotel renovation and refurbishment, hotel expansions and additions, as well as conversion and adaptive reuse projects. New hotel construction is anticipated to dominate the market, driven by an increasing demand for smart infrastructure and energy-efficient designs.
Various construction methods are employed in the lodging sector, including traditional construction, modular and prefabricated construction, advanced construction technologies, and sustainable methods. Traditional construction methods are expected to maintain their dominance due to their familiarity and versatility across different project scales.
In North America, the U.S. significantly leads the lodging construction market, with an impressive market share of 80.5%. In 2024 alone, the U.S. generated USD 135.8 billion in revenue from this sector. However, recent indicators show a downturn in hotel construction in the U.S., with levels reaching the lowest point in 20 quarters. This decline, nearly 12% less than the prior year, is attributed to economic fluctuations and rising construction costs.
Despite a national decline, the Southern U.S. remains at the forefront of new hotel development. Dallas has emerged as the leading market, predicted to expand its hotel supply by nearly 25% by 2027. Conversely, hotel construction in Boston continues to lag, hindered by high costs and a scarcity of suitable sites, even as the market shows signs of recovery.
Looking ahead, markets in the UK, China, UAE, and Brazil are projected to see significant growth from 2025 to 2034. Major players within the industry, including firms like Barton Malow Company, Balfour Beatty US, and Clark Construction Group, collectively account for around 40% of the market share in 2024. These statistics reflect the competitive landscape and provide insight into the industry’s potential expansion.
The comprehensive research report on the lodging construction and renovation market encompasses forecasts of revenue from 2021 to 2034, covering 20 leading companies and 24 countries, supported by 170 tables and figures. The anticipated growth of this market represents opportunities for innovation and development, promising a resilient sector poised for expansion despite current challenges.
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