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Lodging Construction And Renovation Market Forecast: What Market Value Is Expected By 2030?
The lodging construction and renovation market size has seen rapid expansion in recent years. It is projected to increase from $653.86 billion in 2025 to $720.33 billion in 2026, at a compound annual growth rate (CAGR) of 10.2%. The historical growth in this sector can be linked to factors such as a rise in hotel construction activity, the increasing refurbishment of aging lodging properties, an expanding emphasis on interior upgrades, the proliferation of specialty accommodations, and the growing adoption of sustainable building materials.
The lodging construction and renovation market size is projected to experience substantial growth over the coming years, reaching $1048.73 billion by 2030, driven by a compound annual growth rate (CAGR) of 9.8%. This anticipated expansion is fueled by factors such as the increasing deployment of modular and prefabricated building methods, the embrace of sophisticated construction technologies, the rise of energy-efficient mechanical, electrical, and plumbing (MEP) installations, the broader application of AI-powered project management, and a growing need for integrated building systems. Key developments expected during this period involve the widespread adoption of modular and prefabricated construction, the introduction of intelligent hotel management solutions, the incorporation of sustainable construction methods, the scaling of connected material monitoring for buildings, and the implementation of AI-supported interior design and fit-out services.
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Lodging Construction And Renovation Market Growth Drivers: What Factors Are Accelerating Expansion?
The expansion of travel and tourism is anticipated to fuel the future growth of the lodging construction and renovation market. These activities encompass various services and engagements when individuals visit places for recreation, professional purposes, or cultural exploration. An upward trend in disposable income is contributing to the rise in travel and tourism, allowing more individuals to allocate funds for holidays and recreational activities. By offering modern, comfortable, and sustainable accommodation options, lodging construction and renovation improve the travel and tourism sector. These improvements, achieved through updated facilities and creative designs, elevate guest experiences and bolster the expansion and appeal of travel destinations. For example, data from the UN Tourism, a Spain-based specialized agency for tourism, indicates that in 2025, specifically between January and June of 2025, approximately 690 million tourists journeyed internationally. This figure represents an increase of roughly 33 million compared to the corresponding period in 2024. Consequently, the surge in travel and tourism is a key factor propelling the expansion of the lodging construction and renovation market.
Lodging Construction And Renovation Market Segmentation Trends And Revenue Drivers
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 Trends: What Is Shaping Future Industry Growth?
Major companies within the lodging construction and renovation market are concentrating on developing sophisticated technological solutions, including building automation systems, to improve energy efficiency, streamline operational management, and enhance guest comfort. A building automation system (BAS) is defined as a technological framework that automates and integrates a building’s operations, such as heating, ventilation, air conditioning, lighting, and security, for effective management and heightened occupant comfort. For example, in February 2025, Delta Electronics Inc., a Taiwan-based electronics company, unveiled its Delta Intelligent Building Technologies (DIBT) platform. This platform integrates smart automation, energy management, and IoT solutions to boost building efficiency and sustainability. It functions as a unified platform, bringing together Delta’s expertise in architectural lighting, building automation, and indoor air quality to create smart, energy-efficient, and sustainable structures. The platform delivers tailored solutions to optimize energy usage, enhance occupant comfort, bolster security, and enable real-time monitoring and control. DIBT assists businesses in achieving operational excellence and sustainability targets through its scalable, integrated smart building technologies.
#Lodging Construction And Renovation Market Industry Leaders: Which Organizations Are Driving Competition?
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 Distribution: Which Areas Drive Market Expansion?
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.