PUBLISHER: The Business Research Company | PRODUCT CODE: 1872964
PUBLISHER: The Business Research Company | PRODUCT CODE: 1872964
Lodging construction and renovation involve the development of new hotels and lodging facilities as well as the improvement or refurbishment of existing properties. It includes activities such as structural construction, interior finishing, and the installation of mechanical and electrical systems to improve functionality, safety, and the overall guest experience.
The primary types of lodging construction and renovation include new hotel construction, hotel renovation and refurbishment, hotel expansions and additions, and conversion and adaptive reuse. New hotel construction focuses on creating entirely new hotel properties from the ground up, encompassing structural, architectural, and interior components. This sector employs various construction approaches such as traditional methods, modular and prefabricated construction, advanced building technologies, and sustainable construction practices. The material categories include structural materials, building envelope materials, interior finishing materials, and mechanical, electrical, and plumbing (MEP) materials and equipment. It is applied across full-service hotels, limited-service hotels, specialty hotels, and alternative accommodations.
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.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the construction sector, particularly in materials procurement and project costs. Higher duties on imported steel, aluminum, lumber, and machinery have driven up expenses for builders, contractors, and infrastructure developers, leading to increased project bids and delayed timelines. Construction equipment manufacturers face similar challenges, with tariffs on essential components and raw materials inflating production costs and squeezing margins. Additionally, retaliatory tariffs in international markets have curtailed exports of U.S.-made construction equipment and materials, further affecting profitability. The sector must now prioritize local sourcing, modular construction techniques, and supply chain diversification to control costs and ensure project viability amid ongoing trade uncertainties.
The lodging construction and renovation market research report is one of a series of new reports from The Business Research Company that provides lodging construction and renovation market statistics, including lodging construction and renovation industry global market size, regional shares, competitors with a lodging construction and renovation market share, detailed lodging construction and renovation market segments, market trends and opportunities, and any further data you may need to thrive in the lodging construction and renovation industry. This lodging construction and renovation 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.
The lodging construction and renovation market size has grown rapidly in recent years. It will grow from $592.61 billion in 2024 to $653.86 billion in 2025 at a compound annual growth rate (CAGR) of 10.3%. The growth during the historic period resulted from rising urbanization, increasing disposable income, growing demand for tourism, expansion of hotel chains, and higher government spending on infrastructure.
The lodging construction and renovation market size is expected to see rapid growth in the next few years. It will grow to $955.98 billion in 2029 at a compound annual growth rate (CAGR) of 10.0%. The growth during the forecast period will stem from expanding sustainability initiatives, increasing demand for energy-efficient renovations, development of mixed-use properties, greater consumer focus on wellness amenities, and the growing adoption of digital technologies in construction. Key trends expected in the forecast period include advancements in building automation, innovations in modular construction, development of eco-friendly materials, increased investment in research and development, and the integration of smart building technologies.
The growing travel and tourism sector is expected to drive the growth of the lodging construction and renovation market in the coming years. Travel and tourism encompass activities and services related to people visiting destinations for leisure, business, or cultural purposes. The rise in travel and tourism is largely fueled by increasing disposable income, allowing more people to invest in vacations and leisure experiences. Lodging construction and renovation contribute to this trend by providing modern, comfortable, and sustainable accommodations. These developments improve guest experiences through upgraded facilities and innovative designs, enhancing the appeal and growth of travel destinations. For example, in September 2022, the United Nations World Tourism Organization (UNWTO), a Spain-based UN agency for tourism, reported a 172% increase in international tourist arrivals between January and July 2022 compared to the same period in 2021. Therefore, the rise in travel tourism is driving the growth of the lodging construction and renovation market.
Key players in the lodging construction and renovation market are focusing on developing technologically advanced solutions, such as building automation systems, to improve energy efficiency, streamline operational management, and enhance guest comfort. A building automation system is a technology framework that automates and integrates a building's functions, including heating, ventilation, air conditioning, lighting, and security, to ensure efficient management and improved occupant comfort. For instance, in February 2025, Delta Electronics Inc., a Taiwan-based electronics company, launched its Delta Intelligent Building Technologies (DIBT) platform to integrate smart automation, energy management, and IoT solutions for better building efficiency and sustainability. The platform unites Delta's expertise in architectural lighting, building automation, and indoor air quality to create smart, energy-efficient, and sustainable buildings. It offers tailored solutions to optimize energy usage, enhance occupant comfort, improve security, and allow for real-time monitoring and control. DIBT helps businesses achieve operational excellence and sustainability goals through scalable, integrated smart building technologies.
In September 2025, Ameribrands LLC, a U.S.-based holding company, acquired Genesis Hotel Services for an undisclosed amount. This acquisition enables Ameribrands to expand its national hospitality renovation capabilities, delivering fast, consistent, and large-scale renovation projects. By providing multi-site customers with a single-source partner, Ameribrands aims to ensure speed, scale, and uniformity across all projects. Genesis Hotel Services is a U.S.-based renovation company specializing in lodging construction and renovation services.
Major players in the lodging construction and renovation market are Skanska USA, Whiting-Turner Contracting Company, STO Building Group, DPR Construction, Gilbane Building Company, Suffolk Construction Company, Inc., Manhattan Construction, R.D. Olson Construction, Inc., IDC Construction, Inc., W.E. O'Neil Construction, The Beam Team, Inc., Steelman Partners, Salisbury Moore Construction, Inc., Lippe Construction Services, Inc., Case & Associates Construction, Inc., Crystal Hospitality, Inc., Greython Construction, Hillways Construction, Vocker Hospitality GmbH, and Buildiyo.
North America was the largest region in the lodging construction and renovation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in lodging construction and renovation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the lodging construction and renovation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The lodging construction and renovation market includes revenues earned by entities through maintenance and repair services, interior design and fit-out services, repairs and preventive maintenance services, project management and consultancy services, and health and safety compliance work services. 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.
Lodging Construction And Renovation Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on lodging construction and renovation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for lodging construction and renovation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The lodging construction and renovation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.