How big is the US hotel market for a startup selling to hotels — how many hotels and owners there are, who owns the rooms, what a room earns by segment, what owners already pay their brands, and how mature their management is?
US accommodation firms took in $344,719 million in 2025 (Census Quarterly Services Survey), across 61,574 hotel and motel establishments in 2024 (BLS QCEW); 73% of US hotel rooms are brand-affiliated (Marriott 10-K, 2025). A room in Hilton's comparable US hotels earned $139.28 a night in Q2 2026 (RevPAR) against $43.48 in Wyndham's US economy segment, and franchised owners pay brands royalties of 4.8–5.23% of room revenue on top of marketing fees — while 63.6% of US accommodation firms track no KPIs at all (Census ABS 2023).
US Census Bureau: Quarterly Services Survey (via FRED), Annual Integrated Economic Survey 2024, Service Annual Survey 2022, Statistics of US Businesses 2022, Economic Census 2017 franchise tables, Annual Business Survey 2023, Business Trends and Outlook Survey 2026, Annual Capital Expenditures Survey 2022; BLS Quarterly Census of Employment and Wages 2024, Current Employment Statistics and CPI (2026); Q2 2026 earnings releases and 2025 annual reports of Marriott, Hilton, Hyatt, IHG, Choice and Wyndham (sec.gov); SEC XBRL financial statements of US-listed hotel companies; AHLA member survey (February 2026, proxy). Reference periods 2017–2026. · verified as of
Market size: US accommodation revenue and employment
Accommodation (NAICS 721) covers hotels, motels, casino hotels, B&Bs, RV parks and rooming houses; hotels and motels (NAICS 721110) are the core. The quarterly survey counts only taxable employer firms, so it is the best read on the commercial hotel market; quarters are not seasonally adjusted.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| US accommodation revenue, taxable employer firms | $344,719 million | sum of four quarters as published | 2025 | fred.stlouisfed.org |
| Growth of US accommodation revenue | +1.5% | year on year | 2025 | fred.stlouisfed.org |
| Growth of US accommodation revenue, first half | +4.8% | year on year | H1 2026 | fred.stlouisfed.org |
| US accommodation revenue, quarter | $83,356 million | seasonal low quarter | Q1 2026 | fred.stlouisfed.org |
| US accommodation revenue, all firms | $311,333 million | employer firms, all NAICS 721 · published in USD thousand | 2024 | www2.census.gov |
| Receipts of US hotel and motel firms | $207,721 million | hotels and motels only · published in USD thousand | 2022 | www2.census.gov |
| Employees in US accommodation | 1,916.5 thousand | all employees, NAICS 721 | September 2026 | data.bls.gov |
| Employment in US hotels and motels | 1,541,294 | NAICS 721110, annual average | 2024 | data.bls.gov |
Who the buyer is: hotels, firms and size classes
Establishments are properties; firms are owners (one firm can hold many properties). The owner base is small-business heavy: most firms have fewer than 20 employees, while 61 hotel-and-motel firms with 5,000+ employees employ about a quarter of the people in hotel and motel firms (our calculation from Census values).
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Hotel and motel establishments, US | 61,574 | NAICS 721110 | 2024 | data.bls.gov |
| Traveler accommodation establishments, US | 67,492 | NAICS 7211, incl. casino hotels and B&Bs | 2024 | data.bls.gov |
| Change in number of US hotel and motel establishments | +0.5% | 2023 to 2024 | 2024 | data.bls.gov |
| Hotel and motel firms, US | 45,358 | owning companies | 2022 | www2.census.gov |
| Hotel and motel firms with fewer than 20 employees | 34,479 | small owners | 2022 | www2.census.gov |
| Hotel and motel firms with 5,000+ employees | 61 | large chains and management companies | 2022 | www2.census.gov |
| Employees in hotel and motel firms with 5,000+ employees | 358,825 | of 1,366,502 in all hotel and motel firms | 2022 | www2.census.gov |
| Employees in all hotel and motel firms | 1,366,502 | firm-level count | 2022 | www2.census.gov |
| US hotel establishments with fewer than 5 employees | 21,406 | by establishment size | Q1 2024 | data.bls.gov |
| US hotel establishments with 20–49 employees | 12,917 | by establishment size | Q1 2024 | data.bls.gov |
| US hotel establishments with 100–249 employees | 1,794 | by establishment size | Q1 2024 | data.bls.gov |
| US hotel establishments with 1,000+ employees | 55 | by establishment size | Q1 2024 | data.bls.gov |
Who owns the rooms: brands, franchise and independents
Brands mostly do not own hotels — they franchise their name to owners. That makes the owner (often a small firm) the buyer of property-level software, while the brand mandates parts of the stack. Economic Census franchise data is from 2017, the latest edition with this split.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Share of US hotel rooms that are brand-affiliated | 73% | all US hotel rooms | 2025 | sec.gov |
| Marriott share of US hotel rooms | 17% | largest brand company | 2025 | sec.gov |
| Hilton hotel rooms in operation, US | 863,219 | all ownership types | 30 June 2026 | sec.gov |
| Franchised and licensed Hilton rooms, US | 784,690 | owner-operated under the brand | 30 June 2026 | sec.gov |
| Choice Hotels system rooms, US | 499,226 | almost fully franchised system | 30 June 2026 | sec.gov |
| Franchised share of US hotel and motel establishments | 57.9% | excl. casino hotels | 2017 | www2.census.gov |
| Franchised share of US hotel and motel receipts | 67.9% | excl. casino hotels | 2017 | www2.census.gov |
| Independent (non-franchise) hotel and motel establishments, US | 22,734 | excl. casino hotels | 2017 | www2.census.gov |
What a room earns: RevPAR, rate and occupancy by segment
RevPAR is room revenue per available room per night. Brand systems report their own portfolios (Marriott reports US and Canada together); there is no free official US-wide RevPAR series. The spread between economy and luxury is about eightfold, which sets very different software budgets per room.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Marriott US & Canada Luxury — RevPAR | $335.56 | per available room per night | Q2 2026 | sec.gov |
| Marriott US & Canada, all brands — RevPAR | $150.10 | per available room per night | Q2 2026 | sec.gov |
| Hyatt comparable hotels, US — RevPAR | $169.23 | per available room per night | Q2 2026 | sec.gov |
| Hilton comparable hotels, US — RevPAR | $139.28 | per available room per night | Q2 2026 | sec.gov |
| Marriott US & Canada Select (Courtyard, Fairfield, Residence Inn…) — RevPAR | $125.86 | per available room per night | Q2 2026 | sec.gov |
| Wyndham US Upscale and Above — RevPAR | $91.85 | per available room per night | Q2 2026 | sec.gov |
| Wyndham US Economy — RevPAR | $43.48 | per available room per night | Q2 2026 | sec.gov |
Rate, occupancy and momentum
Upper segments run near three-quarters full; economy hotels in the Choice system filled half their rooms. Growth in 2026 is concentrated at the top: luxury RevPAR rose fastest while Wyndham's upscale segment fell.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Average daily rate, Marriott US & Canada | $202.82 | per occupied room night | Q2 2026 | sec.gov |
| Average daily rate, Hilton comparable hotels, US | $180.16 | per occupied room night | Q2 2026 | sec.gov |
| Occupancy, Marriott US & Canada | 74.0% | systemwide | Q2 2026 | sec.gov |
| Occupancy, Hilton comparable hotels, US | 77.3% | Q2 2026 | sec.gov | |
| Occupancy, Choice Hotels US Midscale & Upper Midscale | 59.6% | Q2 2026 | sec.gov | |
| Occupancy, Choice Hotels US Economy | 49.9% | Q2 2026 | sec.gov | |
| RevPAR change, Marriott US & Canada Luxury | +9.1% | year on year | Q2 2026 | sec.gov |
| RevPAR change, Hilton comparable hotels, US | +5.4% | year on year | Q2 2026 | sec.gov |
| RevPAR change, Wyndham US Upscale and Above | -5% | year on year, constant currency | Q2 2026 | sec.gov |
| US consumer prices, hotels and motels (CPI-U lodging away from home) | +2.9% | 12-month change | August 2026 | data.bls.gov |
What franchised owners already pay their brand
These are fees a franchised owner pays the brand as a share of room revenue — the existing 'tax' a new tool competes with or plugs into. Royalty and marketing fees are separate lines and are not added up here.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Average royalty rate, Choice Hotels US franchisees | 5.23% | of room revenue | Q2 2026 | sec.gov |
| Average royalty rate, Wyndham US franchised hotels | 4.8% | of room revenue | Q2 2026 | sec.gov |
| Typical royalty fee in Choice Hotels US franchise agreements | 5–6% | of gross room revenue | 2025 | sec.gov |
| Typical marketing and reservation fee in Choice Hotels US franchise agreements | 3–4% | of gross room revenue | 2025 | sec.gov |
| Typical royalty fee in Hyatt franchise agreements | 2.75–5% | of gross room revenue · global | 2025 | sec.gov |
| Share of Marriott US room nights booked by loyalty members | 75% | what the brand delivers to the owner | 2025 | sec.gov |
| Share of IHG US room nights booked by loyalty members | 73% | H1 2026 | sec.gov |
Margins and cost pressure
Listed hotel companies include asset-light franchisors, owners and casino resorts, so the spread is wide. Survey shares from AHLA are a member survey (tier 2, shown as proxy); BTOS is the Census Bureau's biweekly business survey.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| Median operating margin, US-listed hotel and casino-resort companies | 14.7% | revenue $50M+ | 2025 | data.sec.gov |
| Median net profit margin, US-listed hotel and casino-resort companies | 5.2% | revenue $50M+ | 2025 | data.sec.gov |
| 25th percentile net profit margin, US-listed hotel and casino-resort companies | -11.0% | revenue $50M+ | 2025 | data.sec.gov |
| Average weekly wage, US hotels and motels | $818 | per employee | 2024 | data.bls.gov |
| Advertising and promotion spend, US accommodation firms | 1.82% | of revenue | 2022 | www2.census.gov |
| Capital expenditures, US traveler accommodation | $9,970 million | all assets | 2022 | www2.census.gov |
| US hoteliers naming cost of goods and supplies a top financial pressure | 71% | AHLA member survey · proxy: industry survey | February 2026 | ahla.com |
| US hoteliers naming labor costs a top financial pressure | 65% | AHLA member survey · proxy: industry survey | February 2026 | ahla.com |
| US accommodation businesses reporting higher prices paid for inputs | 44.6% | last two weeks | March 2026 | census.gov |
| US accommodation businesses whose profitability fell because of interest rates | 29.1% | last six months | March 2026 | census.gov |
Management maturity and AI use
The gap a software startup sells into: most US accommodation firms run without formal KPIs, and fewer than one in ten use AI. Annual Business Survey figures cover employer firms in accommodation (NAICS 721).
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| US accommodation firms using no key performance indicators | 63.6% | employer firms | 2023 | www2.census.gov |
| US accommodation firms using 10 or more KPIs | 3.9% | employer firms | 2023 | www2.census.gov |
| US accommodation firms with no business targets | 42.5% | employer firms | 2023 | www2.census.gov |
| US accommodation firms monitoring customer satisfaction daily | 39.8% | employer firms | 2023 | www2.census.gov |
| US accommodation businesses using AI in any business function | 8.6% | last two weeks | April 2026 | census.gov |
| US accommodation businesses expecting to use AI within six months | 14.9% | April 2026 | census.gov | |
| US accommodation businesses that do not know whether they will use AI | 21.2% | next six months | March 2026 | census.gov |
| Owners in IHG's US commercial-solutions pilot paying less than for their current revenue management services | 75% | pilot participants | H1 2026 | sec.gov |
Rules that shape the product
Verified rules from the primary regulator.
| Metric | Value | Segment | Period | Source |
|---|---|---|---|---|
| FTC Rule on Unfair or Deceptive Fees (16 C.F.R. Part 464): hotels and short-term rentals must show the all-in total price, including resort and service fees, more prominently than other prices | in force | does not cap or ban any fee | since 12 May 2025 | ftc.gov |
Why US hotel numbers from different sources disagree
Four things change the answer. First, the perimeter: US accommodation (NAICS 721) includes casino hotels, B&Bs, RV parks and rooming houses, while hotels and motels (721110) are the core — $344,719 million is all US accommodation, $207,721 million (2022) is US hotel and motel firms only. Second, the survey: the Quarterly Services Survey counts taxable employer firms, the Annual Integrated Economic Survey all employer firms, and they are published on different schedules, so 2024 and 2025 totals are not a growth series. Third, establishments against firms: 61,574 US hotel and motel properties (BLS, 2024) belong to 45,358 owning US firms (Census, 2022), and one management company can run hundreds of properties. Fourth, brand reporting: RevPAR, rate and occupancy come from each brand's own system — Marriott reports the US together with Canada, Hilton and Hyatt report comparable US hotels, Wyndham and Choice report US segments — so they describe each portfolio, not the whole market. Brand-affiliated share (73% of rooms, 2025) and the US franchised share (57.9% of establishments, 2017) differ in year and unit: rooms against properties, and big branded hotels have more rooms than small independents.
US Census Bureau — Quarterly Services Survey (FRED) · BLS — Quarterly Census of Employment and Wages · US Census Bureau — Statistics of US Businesses 2022 · Marriott International — 2025 annual report (10-K) · US Census Bureau — Annual Business Survey 2023
Methodology
Every number on this page is a fact node in the God of Startups Atlas — a knowledge graph where each metric carries its source URL, reporting period, evidence tier and the verbatim quote it was taken from. Tier 1 means official or statutory sources (US Census Bureau, Bureau of Labor Statistics, company filings with the SEC); tier 2 means industry research with a disclosed method (AHLA member survey, shown as proxy). Values are shown in the currency and unit the source reports; amounts published in thousands of dollars are shown in millions, rounded; nothing is converted, estimated or modelled.
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