Hospitality Industry Statistics in 2025

Key Takeaways:

• The United States hospitality market is expected to reach $247.45 billion by 2025 and $313.87 billion by 2030.
• The restaurant industry is estimated to employ 15.9 million people, while the hotel industry is expected to employ 2.17 million.
• The expected nationwide hotel occupancy rate for 2025 is 63.38%.
• Guest spending in hotels and resorts is expected to reach a record $777.25 billion.
• The restaurant industry is projected to reach $1.5 trillion in sales.
• About 47% of restaurant operators have raised menu prices to maintain profitability due to rising costs.
• Projects show that approximately 19 million Americans will go on ocean cruises in 2025.
• Domestic passenger airlines are projected to employ 583,277 people.

We break down the most relevant hospitality industry statistics of 2025 to help businesses and job seekers understand where the sector stands — and where it’s heading. 

US Hospitality Industry Market Size and Growth

The hospitality market in the United States presents a compelling picture of growth and opportunity. But to understand where it’s headed, it’s important to look at the numbers. 

Below are some of the most telling stats this year.

• The market size is estimated to reach $247.45 billion in 2025, with projections indicating a further expansion to $313.87 billion by 2030, reflecting a compound annual growth rate (CAGR) of 4.87%. (Source) 
• Despite this positive growth trajectory, the U.S. hospitality industry faces ongoing challenges like labor shortages.
• In fact, annual turnover in hospitality is 74%. This is about five times higher than the average 12%–15% range for other industries.
• Tennessee ranks as the best state for hospitality professionals, offering affordable living, strong wages and a projected 25% job growth by 2030.
• In contrast, Hawaii ranks last due to its high cost of living (despite offering high wages), leaving workers to struggle with balancing income and expenses.
• Overall, the global hospitality market reached an all-time high of $4.99 trillion in 2024 and is expected to exceed $6 trillion by 2028. (Source)

Hospitality Employment and Economic Impact

The hospitality industry is a major source of employment and economic activity in the U.S., supporting millions of jobs across various sectors. 

This section highlights its impact on job creation and economic growth.

• As of March 2025, the broader leisure and hospitality sector has employed approximately 16.99 million people in the U.S. (Source)
• The restaurant industry is projected to employ 15.9 million people by the end of 2025, with around 200,000 new jobs added. (Source)
• Meanwhile, the hotel industry directly employed over 2.15 million individuals in 2024, and this number is expected to rise to over 2.17 million in 2025. (Source)
• However, the leisure and hospitality sector also experienced a decrease in job openings from 1,057,000 in January 2025 to 996,000 in February 2025. This suggests a potential shift in hiring trends within this larger category. (Source)
• The unemployment rate for individuals previously employed in this sector fluctuated between 5.4% and 6.2% from December 2024 to March 2025. These figures indicate some level of volatility and ongoing adjustments within the workforce of this key hospitality segment.
• In 2024, about 3% of wage and salary workers in the leisure and hospitality industry were union members, with 3.4% represented by unions. ​

Hotels and Lodging

Here, we’ll cover key trends and statistics that highlight the performance and outlook of the U.S. hotel industry.

• Recent data shows there are over 116,873 hotels and motels across the country. These establishments collectively offer an estimated 5.3 million guest rooms nationwide. (Source)
• The hotel and broader lodging industry — which also includes vacation rentals — accounts for $660 billion added to the GDP annually. (Source)
• Hotel occupancy is projected to reach 63.38% in 2025, slightly below the 65.8% recorded in 2019 but a significant improvement over 43.8% in 2020. ​(Source)
• The average daily rate (ADR) for U.S. hotels will increase in 2025, reaching a new high of $162.16 — which is 1.99% higher than the 2024 rate.​
• The increase in the ADR that businesses charge for their services is expected to drive growth in the hotel industry. This means that strategies focusing on adjusting prices and offering better value will be crucial for businesses in the U.S. hospitality sector to succeed. 
• Meanwhile, the revenue per available room (RevPAR) will reach a nominal high of $102.78 in 2025, surpassing the previous year’s $100.19. 
• Guest spending is set to achieve a record high of $777.25 billion in 2025.
• Meanwhile, total domestic travel spending in the U.S. amounted to $1.3 trillion in 2024, up from $1.2 trillion in 2023, with leisure travel accounting for over $900 billion of this expenditure. (Source)
• ​As of early 2025, the group travel segment continues to bolster hotel performance. Major hotel chains have reported significant increases in group bookings, with Marriott International noting a 6% year-over-year rise in group revenues as of late 2024. (Source)
• Similarly, Hyatt Hotels Corp. observed a 7% increase in group bookings compared to the previous year. (Source)
• Boston is currently the most expensive city for hotel stays. There, the average price of the least expensive double room at centrally located, three-star or higher hotels is $320 per night.

Restaurants and Food Service

In this section, we’ll break down the key trends and data points shaping the U.S. restaurant industry’s performance and future outlook.

• The U.S. currently has over 1 million restaurant and food service outlets.
• The 2025 revenue projection of $1.5 trillion marks a significant 74% increase from the 2019 revenue of $864 billion, reflecting the restaurant industry’s strong recovery and growth.
• Full-service restaurants have an average profit margin of approximately 9.8%. (Source)
• In early 2025, food prices rose by about 6.2% year-over-year, prompting many restaurants to increase menu prices in order to maintain profitability. (Source)
• To maintain profitability amid rising costs, 47% of restaurant operators have increased menu prices. (Source)
• 54% of quick-service customers and 41% of full-service patrons consider loyalty programs important when choosing where to dine. (Source)
• Restaurants with loyalty programs have observed that loyalty check averages are 5% higher than non-loyalty check averages, indicating the effectiveness of such programs in boosting sales.
• Over 60% of restaurant operators plan to invest in front-of-house technologies, such as kiosks and reservation systems, to enhance customer experience and operational efficiency. (Source)

Cruise Lines, Airlines and Events

Below are key 2025 statistics for other sectors that also play a role in the broader hospitality landscape.

• The U.S. cruise market generated approximately $3.67 billion in revenue in 2024 and is projected to reach $7.58 billion by 2030, reflecting a CAGR of 12.9% from 2025 to 2030. (Source)
• Ocean cruises generated the largest revenue in 2024 among the different segments. 
• In terms of revenue, the U.S. accounted for 41.3% of the global cruise market in 2024.
• Around 19 million Americans are expected to embark on ocean cruises in 2025. This marks a 4.5% increase from the previous year and the third consecutive year of record passenger volume. (Source)
• U.S.-based cruise line operators are projected to employ 20,411 people in 2025, up from 19,838 in 2024. (Source)
• Meanwhile, domestic passenger airlines in the U.S. are projected to employ 583,277 people in 2025, up from 576,876 in 2024. (Source)
• The North American in-flight catering services market is valued at approximately $3.11 billion for 2025, with projections indicating a CAGR of 12.86% from 2025 to 2033. (Source)
• As for the event planning industry, it is on track to surpass a market value of $2 trillion by 2028. ​(Source)
• Currently, about 149,000 people work in the event planning industry, with an expected 16,500 job openings each year, on average, over the next decade. (Source)
• On average, 14% of marketing budgets are allocated to event marketing, underscoring the importance of events in promotional strategies. 
• The event planning industry is notably female-dominated, with women comprising 79% of the workforce compared to only 21% men.

Hospitality in 2025: Final Thoughts

The data from 2025 shows steady growth across most areas of the hospitality industry, along with ongoing challenges. 

Businesses are dealing with rising costs, a tight labor market and evolving customer expectations, all while trying to stay competitive and maintain profitability.

At the same time, we’re seeing clear investment in technology, pricing strategies and customer experience improvements. These shifts suggest a focus on efficiency and long-term sustainability rather than rapid expansion.

For both employers and job seekers, understanding the numbers behind the industry is key. Whether you’re hiring, managing operations or exploring career options, staying informed will help you make better decisions in a fast-changing market.