With a focus on actionable insights and strategic value, The Business Research Company’s 2026 market reports include market attractiveness scoring, total addressable market sizing, company benchmarking matrices, interactive Excel dashboards, deeper supply chain intelligence, emerging startup tracking, and granular product-level insights.
How Large Could The Lodging Construction And Renovation Market Become By 2030 At A 9.8% CAGR?
The lodging construction and renovation market has seen significant expansion in recent years. This market is anticipated to expand from $653.86 billion in 2025 to $720.33 billion in 2026, exhibiting a compound annual growth rate (CAGR) of 10.2%. The historical increase can be attributed to several factors including a surge in hotel construction activities, a rise in the refurbishment of older lodging establishments, a heightened focus on interior improvements, the growth of specialty accommodations, and an increasing adoption of sustainable building materials.
The lodging construction and renovation market is projected to experience robust expansion over the coming years. This market is anticipated to reach $1048.73 billion in 2030, exhibiting a compound annual growth rate (CAGR) of 9.8%. This anticipated growth during the forecast period is largely driven by factors such as the increasing utilization of modular and prefabricated construction methods, the widespread adoption of advanced construction technologies, the surge in energy-efficient MEP installations, the broader application of AI-assisted project management, and the escalating demand for connected building systems. Key trends shaping the forecast period encompass the embrace of modular and prefabricated construction approaches, the establishment of smart hotel management systems, the incorporation of energy-efficient construction methods, the broadening scope of connected building materials monitoring, and the strategic deployment of AI-assisted interior design and fit-out services.
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Lodging Construction And Renovation Market Outlook: Key Driver Supporting Long-Term Growth
Increasing travel and tourism are anticipated to drive expansion in the lodging construction and renovation market in the coming period. This sector encompasses activities and services where individuals journey to various locations for purposes such as recreation, commerce, or cultural immersion. The uptick in travel and tourism stems from growing disposable income, which allows a larger population to allocate funds towards holidays and recreational pursuits. New construction and refurbishment projects in the lodging sector boost travel and tourism by offering contemporary, cozy, and eco-friendly lodging options. These efforts elevate guest satisfaction through improved amenities and novel designs, thereby fostering the development and appeal of tourist spots. As an illustration, in 2025, data from the UN Tourism, a specialized tourism agency situated in Spain, revealed that approximately 690 million international tourists embarked on journeys between January and June of 2025. This figure represents an increase of around 33 million compared to the corresponding period in 2024. Consequently, the expansion of travel and tourism is a key driver for the growth of the lodging construction and renovation market.
Segmentation Of The Lodging Construction And Renovation Market: Key Categories Explained
The lodging construction and renovation market covered in this report is segmented –
1) By Type: New Hotel Construction, Hotel Renovation And Refurbishment, Hotel Expansions And Additions, Conversion And Adaptive Reuse
2) By Construction Method: Traditional Construction Methods, Modular And Prefabricated Construction, Advanced Construction Technologies, Sustainable Construction Method
3) By Material Category: Structural Materials, Building Envelope Materials, Interior Finish Materials, Mechanical, Electrical, And Plumbing (MEP) Materials And Equipment
4) By Application: Full-Service Hotels, Limited-Service Hotels, Specialty Hotels, Alternative Accommodations
Subsegments:
1) By New Hotel Construction: Luxury Hotels, Mid-Scale Hotels, Budget Hotels
2) By Hotel Renovation And Refurbishment: Interior Upgrades, Exterior Renovations, Energy Efficiency Retrofits
3) By Hotel Expansions And Additions: Additional Guest Rooms, Conference And Event Spaces, Wellness And Spa Facilities
4) By Conversion And Adaptive Reuse: Office-To-Hotel Conversions, Residential-To-Hotel Conversions, Historic Building Restorations
Lodging Construction And Renovation Market Evolving Trends: What Businesses Should Know
Leading companies operating in the lodging construction and renovation market are concentrating on developing advanced technological solutions, such as building automation systems, to boost energy efficiency, optimize operational management, and improve guest comfort. A building automation system refers to a technology framework that automates and integrates a building’s operations, including heating, ventilation, air conditioning, lighting, and security, to ensure efficient management and enhanced occupant comfort. For instance, in February 2025, Delta Electronics Inc., a Taiwan-based electronics company, launched a Delta Intelligent Building Technologies (DIBT) platform designed to integrate smart automation, energy management, and IoT solutions for enhanced building efficiency and sustainability. It represents a unified platform that combines Delta’s expertise in architectural lighting, building automation, and indoor air quality to create smart, energy-efficient, and sustainable buildings. The platform offers customized solutions to optimize energy use, enhance occupant comfort, improve security, and enable real-time monitoring and control. DIBT helps businesses achieve operational excellence and sustainability goals through scalable, integrated smart building technologies.
Who Competes In The Lodging Construction And Renovation Market? Major Companies Listed
Major companies operating 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, Vöcker Hospitality GmbH, Buildiyo
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Lodging Construction And Renovation Market Regional Ranking: Which Geography Comes First?
North America was the largest region in the lodging construction and renovation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the lodging construction and renovation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
