Hospitality Buildings Market Report 2026

The hospitality buildings market size has grown steadily in recent years. It will grow from $82.29 billion in 2025 to $85.85 billion in 2026 at a compound annual growth rate (CAGR) of 4.3%. The growth in the historic period can be attributed to growth in tourism-driven construction, expansion of urban hotel development, rising demand for resort properties, reliance on traditional construction methods, increasing investment in commercial hospitality spaces.

The hospitality buildings market size is expected to see strong growth in the next few years. It will grow to $104.64 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to growing demand for sustainable hospitality infrastructure, rising investment in themed and experiential hotels, expansion of mixed-use hospitality developments, increasing renovation and modernization activities, development of innovative modular hotel construction techniques. Major trends in the forecast period include growth in boutique and themed hospitality construction, increasing demand for resort and leisure-oriented facilities, expansion of budget and midscale hotel developments, rising renovation and upgrade activities across existing hotels, higher focus on space optimization for guest experience.

The rapid expansion of the travel and tourism industry is expected to drive growth in the hospitality buildings market moving forward. The travel and tourism industry encompasses businesses that provide essential products and services to travelers. Increased tourism can boost business activities, raise sales, and enhance profits for companies, thereby improving the financial performance of hospitality firms. Hospitality buildings are crucial to the travel and tourism sector as they are establishments that provide meals, short-term lodging, and various services to visitors, including tourists and travelers. Consequently, the rise in the number of travelers and tourists will stimulate the construction of hospitality buildings. For example, in October 2025, data from the Australian Bureau of Statistics (ABS), Australia’s national statistical agency, showed that short-term visitor arrivals reached 753,320, marking a 14.3% increase compared with the same month in the previous year. Thus, the exponential growth of the travel and tourism industry is driving the growth of the hospitality buildings market.

Premier companies are concentrating on the development of managed hotels, specifically all-women managed hotels, to foster gender diversity and gain a competitive edge. An all-women managed hotel is defined as a lodging establishment where women hold leadership and operational roles across various departments. Westin Hotels & Resorts, a US-based hotel management company, exemplifies this trend with the launch of The Westin Hyderabad Hitec City in June 2023. This all-women managed hotel, with a focus on wellness experiences, operates solely on green energy from renewable sources. It features 168 keys, four dining options, banquet space, and sets a new standard of hospitality with its all-women management team.

In November 2025, Shawmut Design and Construction, a US-based construction management firm specializing in high-end projects across hospitality, education, commercial, and healthcare sectors, acquired First Finish for an undisclosed amount. Through this acquisition, Shawmut aims to offer a fully integrated solution in the hotel construction market by combining its expertise in ground-up construction with First Finish’s specialized renovation capabilities, thereby strengthening its presence in the hospitality sector. First Finish is a US-based full-service hotel renovation contractor providing interior renovation services for major hotel brands and property owners throughout North America.

Major companies operating in the hospitality buildings market are Turner Construction Company, AECOM, Balfour Beatty Construction, STO Building Group, The Whiting-Turner Contracting Company, Gilbane Building Company, JE Dunn Construction Group, Hensel Phelps Construction Company, DPR Construction Inc., HITT Contracting Inc., Brasfield & Gorrie LLC, Clark Construction Group LLC, Mortenson Inc., PCL Constructors Inc., McCarthy Holdings Inc., Suffolk Construction Company, The Yates Companies, Gray Construction Inc., Robins & Morton Inc., Sundt Construction Inc., Swinerton, W.E. O'Neil Construction Co., Hoffman Construction Company, Messer Construction Company, Skanska USA Civil Inc., The Beck Group Inc., Pepper Construction Company, Webcor Builders LLC, Layton Construction Company LLC, Clayco Inc., Hoar Construction LLC, Weis Builders Inc.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on steel, cement, HVAC systems, imported interior materials, and construction components have raised project costs and extended development timelines across the hospitality buildings market. Segments such as luxury hotels, resorts, and boutique accommodationsparticularly in regions reliant on imported finishing materials like Europe and Asia-Pacificexperience cost inflation and slowing project completions. Both chain and individual hotel developers face heightened capital expenditure. However, tariffs are encouraging domestic sourcing, stimulating local manufacturing of interiors and structural materials, and promoting cost-efficient design innovations that strengthen regional supply resilience.

The hospitality buildings market research report is one of a series of new reports that provides hospitality buildings market statistics, including hospitality buildings industry global market size, regional shares, competitors with a hospitality buildings market share, detailed hospitality buildings market segments, market trends and opportunities, and any further data you may need to thrive in the hospitality buildings industry. This hospitality buildings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Hospitality buildings encompass the construction of structures such as hotels and restaurants, designed to offer a satisfying experience to each visitor. The focus is on creating an enjoyable atmosphere within the hotel or restaurant.

The primary types of hospitality buildings encompass business or commercial hotels, boutique hotels, resort hotels, casino hotels, transit hotels, bed and breakfast hotels, and others, with different price levels such as luxury, upscale, midscale, and economy. Business hotels cater predominantly to business travelers, and room capacities vary from small to mega. The main business models are individual and chain.North America was the largest region in the hospitality buildings market in 2025. The regions covered in the hospitality buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hospitality buildings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hospitality buildings market includes revenues earned by entities by constructing hotels, restaurants, tents and convention buildings. The market includes new work, additions, alterations, maintenance, and repairs. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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