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Hotel Franchise Market Size
- Report ID: GMI8027
- Published Date: Feb 2024
- Report Format: PDF
Hotel Franchise Market Size
Hotel Franchise Market size was valued at USD 36.7 billion in 2023 and is estimated to register a CAGR of over 7.5% between 2024 and 2032, due to the rise in demand for unique and localized experiences. With changing traveler preferences, several hotel franchises are exploring boutique and lifestyle concepts to cater to guests seeking more personalized and distinctive stays. The strong focus on local culture, community engagement, and authentic experiences is also playing a significant role in shaping the industry growth.
The emerging trend of sustainability is further compelling an increasing number of franchises to adopt eco-friendly practices, such as waste reduction initiatives, energy-efficient technologies, and environmentally friendly materials. To cite an instance, in April 2023, Marriott International reiterated its commitment to achieving sustainability certification for all its hotels as well as green building certifications for its 650 properties by 2025. This growing consumer preference for hotels committed to sustainable and responsible business practices will significantly contribute to the market growth.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Hotel Franchise Market Size in 2023: | USD 36.7 Billion |
| Forecast Period: | 2024 - 2032 |
| Forecast Period 2024 - 2032 CAGR: | 7.5% |
| 2032 Value Projection: | USD 71.9 Billion |
| Historical Data for: | 2018 - 2023 |
| No. of Pages: | 265 |
| Tables, Charts & Figures: | 300 |
| Segments covered: | Chain Value, Hotel Type |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The surge in the hotel franchise market is notably influenced by the expansion and diversification of luxury hotel offerings. A growing consumer appetite for premium travel experiences has propelled major players in the industry, such as Marriott, Hilton, and AccorHotels, to intensify their focus on luxury hotel franchises. This trend is not only reflective of an increasing demand for opulent accommodations but also underscores the strategic importance of catering to high-end clientele.
The rising emphasis on digital marketing strategies for accelerating direct bookings while reducing reliance on Online Travel Agencies (OTAs) for cost savings for hotel franchises will play a key role in the market expansion. Hotels are increasingly offering incentives, such as discounts, room upgrades, and loyalty program benefits, further motivating guests to choose the hotel's official channels over third-party platforms. However, intense competition from new market entrants and the shifting consumer preference for alternative accommodations like vacation rentals may limit the industry growth to some extent.
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Hotel Franchise Market Scope
