This report covers hotels, defined as collective accommodation establishments providing lodging and usually meals, entertainment and various personal services for the public. The $131 billion hotels industry in the U.S. has rebounded after faltering in 2001 and 2002. Rises in occupancy have allowed hoteliers to raise rates in 2004 and 2005, resulting in approximately 8% growth in revenues per year since 2003.

The rise in travel in the U.S. has helped to drive occupancy and, in turn, room rates. The number of overseas visitors to the U.S. grew in 2004 for the first time since 2000, resulting in an increased demand for rooms even as Americans continue to travel more as well. Census Bureau data indicates that the number of households with income levels over $75K grew by more than 15% during 1999-2004. This rise in households that are most likely to travel is a positive driver for a market that is seeing increasing prices for rooms.

A significant trend within the ranks of the major hotel chains is the move from property ownership to franchise and management. Many of the largest hotel chains have been selling properties, especially those in high-value real estate markets, but negotiating contracts to manage or franchise the properties that they have sold so as to ensure a long-term stream of revenue.

The outlook for hotel revenues is positive for 2006-11 as a continued rise in occupancy and rates is forecast as part of an overall growth pattern for the U.S. travel industry.

In this report, Mintel clearly identifies the principal external factors driving or curtailing growth. Exclusive consumer research reveals the attitudes, needs and behavior of consumers, with analysis broken down both by demographic characteristics, and by segment.

Six years of specific sales data provide a factual and impartial presentation of the market as a whole. Mintel also evaluates the performance of individual sectors in the market, and provides information about the major companies and brands. Using the SPSS forecasting package, Mintel creates a five-year forecast of U.S. retail sales, revealing potential opportunities for growth and product development.

This report contains US IRI InfoScan data.

• Introduction and Abbreviations
• Introduction
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Hotels market sees steady growth; competition breeds better service
• Growth in number of travellers drives demand and rates higher
• Household income levels help determine who stays
• Gay-friendly hotels lure the $80 billion GLBT market
• Location, price and size of property are key segments
• Suppliers moving from owning to managing/franchising
• More face-to-face promotion
• Online sales gain; hotel brands challenging online travel agencies
• Incidence of stays and spending on hotel
• How respondents choose and book a hotel
• What is most important to consumers?
• Bright future for hotel industry
• Market Drivers
• Travel costs and patterns
  • Figure 1: Travel price index* and consumer price index*, 2001-06
• More travellers in the U.S.
  • Figure 2: Total U.S. domestic travel volume, millions of person trips, 1994-2004
  • Figure 3: International and overseas* visitors to U.S., 1998-2005
• Distribution of income
  • Figure 4: Disposable personal income, at current and constant prices, 2000-05
  • Figure 5: Distribution of U.S. households, by income, 1999 and 2004
  • Figure 6: Number of room nights, by income, 2004
• Demographics
  • Figure 7: U.S. population projections and number of hotel users, by age, 2001 and 2006
  • Figure 8: U.S. Hispanic population projections and number of hotel consumers, by age, 2001 and 2006
• Resilient GLBT market a boon for gay-friendly hotels
  • Figure 9: Total travel expenditure by GLBT Americans, at current and constant prices, 2000-05
• New supply not meeting rising demand
  • Figure 10: New hotel rooms added in U.S., 1997-2005
• Condo hotels drive hotel development in oceanside and urban areas
• Market Size and Trends
  • Figure 11: Sales of hotel accommodations, at current and constant prices, 2001-06
  • Figure 12: Graph: Sales of hotel accommodations, at current and constant prices, 2001-06
• Trends in occupancy and revenue per room
  • Figure 13: Hotel occupancy and revenue, 2001-05
• Trends in service
• Investment in technology upgrades
• New ways to get fit
• Less is more
• Laps of luxury
• Market Segmentation
• Rate structure
  • Figure 14: Hotels, segmented by rate structure, 2003 and 2005*
  • Figure 15: Graph: Hotels, segmented by rate structure, 2003 and 2005*
• Location of hotel
  • Figure 16: Hotels, segmented by location, 2003 and 2005*
  • Figure 17: Graph: Hotels, segmented by location, 2005*
• Number of rooms
  • Figure 18: Hotels, segmented by number of rooms, 2003 and 2005*
  • Figure 19: Graph: Hotels, segmented by number of rooms, 2005*
• Supply Structure
• Companies and brands
  • Figure 20: International system-wide* revenue for top ten global hoteliers, 2003 and 2005
  • Figure 21: Number of North American hotel rooms for top five ranked hotel groups in U.S., 2005
• Company profiles
• Accor North America
• Best Western International
• Carlson Hotels Worldwide
• Cendant Corporation (Wyndham Worldwide Corporation)
• Choice Hotels International, Inc.
• Hilton Hotels Corporation
• InterContinental Hotels Group PLC (IHG)
• Marriott International, Inc.
• Starwood Hotels & Resorts Worldwide, Inc.
• Advertising and Promotion
• Accor North America
• Motel 6
  • Figure 22: Television advertisement: Motel 6, 2006
• Best Western International
  • Figure 23: Television advertisement: Best Western, 2006
• Carlson Hotels Worldwide
• Country Inn & Suites
• Cendant/Wyndham Worldwide
• Choice Hotels International, Inc.
• Hilton Hotels Corporation
  • Figure 24: Television advertisement: Hilton Hotels, 2006
• Hilton Garden Inn
• InterContinental Hotels Group
• Holiday Inn
• InterContinental
• Priority Club
• Marriott International Inc.
  • Figure 25: Television advertisement: Marriot Courtyard, 2006
• Starwood Hotels & Resorts Worldwide, Inc.
• Aloft
• W Hotels and Westin
• Retail Distribution
• Introduction
  • Figure 26: U.S. sales of hotels, by channel, 2003 and 2005
• Hotel companies limit supply to certified third parties
• Online travel agencies changing hands
• Online agency profiles
  • Figure 27: Online travel agency market share, 2004
• Expedia (IAC/InterActive Corp.)
• Travelocity (Sabre)
• Orbitz (Cendant)
• Priceline
• The Consumer
• Introduction
• Summary
• Hotel usage peaks for 35-54 year-olds
  • Figure 28: Accommodation on last domestic trip, January-September 2005
• Incidence of hotel stays
  • Figure 29: Incidence of hotel stays, January-September 2005
• Average number of nights peaks at age 45-64
  • Figure 30: Hotel nights for personal reasons/vacation in the past 12 months, January-September 2005
• Mid-priced brands most popular
  • Figure 31: Hotel brands stayed, January-September 2005
• Membership in frequent guest programs
  • Figure 32: Enrollment in frequent guest program, January-September 2005
• Incidence of leisure and business travel
  • Figure 33: Incidence of leisure and business travel, July 2006
• Combination of hotel and flight
  • Figure 34: Booking of flight, hotel, or both--leisure trips, July 2006
  • Figure 35: Booking of flight, hotel, or both--business trips, July 2006
• Average spending per night on hotel
• Leisure
  • Figure 36: Mean spending per night on hotel for leisure, July 2006
  • Figure 37: Mean spending per night on hotel for leisure, by gender, July 2006
  • Figure 38: Mean spending per night on hotel for leisure, by age of respondent, July 2006
  • Figure 39: Mean spending per night on hotel for leisure, by household income, July 2006
• Business
  • Figure 40: Mean spending per night on hotel for business, July 2006
  • Figure 41: Mean spending per night on hotel for business, by age of respondent, July 2006
  • Figure 42: Mean spending per night on hotel for business, by household income, July 2006
• Importance of hotel attributes
  • Figure 43: Importance of hotel attributes--mean, July 2006
  • Figure 44: Importance of hotel attributes--mean, by age, July 2006
  • Figure 45: Importance of hotel attributes--mean, by household income, July 2006
  • Figure 46: Importance of hotel attributes--mean, by race/ethnicity, July 2006
  • Figure 47: Importance of hotel attributes--mean, by Hispanic ethnicity, July 2006
• Methods used for booking
  • Figure 48: Method of booking, July 2006
  • Figure 49: Method of booking, by age, July 2006
  • Figure 50: Method of booking, by household income, July 2006
  • Figure 51: Method of booking, by race/ethnicity, July 2006
  • Figure 52: Method of booking, by marital status, July 2006
• Hotel services and amenities used
  • Figure 53: Hotel services and amenities used, July 2006
  • Figure 54: Hotel services and amenities used, by age, July 2006
  • Figure 55: Hotel services and amenities used, by household income, July 2006
• Attitudes/opinions regarding hotels and their features
  • Figure 56: Attitudes/opinions regarding hotels and their features, July 2006
  • Figure 57: Attitudes/opinions regarding hotels and their features, by gender, July 2006
  • Figure 58: Attitudes/opinions regarding hotels and their features, by age, July 2006
• Future and Forecast
• Future trends
• Demographics
  • Figure 59: U.S. population projections and number of hotel users, by age, 2006 and 2011
• Growing number of international visitors
  • Figure 60: Forecast of international travellers to the U.S., 2006-08
• Fighting high gas prices
• Condo hotels helping to drive new construction of luxury hotels
• Making the hotel the destination
• Race to better service in luxury segment
• Market forecast
• Hotel accommodations
  • Figure 61: Forecast of hotels and accommodations, at current and constant prices, 2006-11
  • Figure 62: Graph: Forecast of hotels and accommodations, at current and constant prices, 2006-11
• Forecast factors
• Appendix: Trade Associations