Hotel Franchise Market Size - By Chain Value (Luxury, Upper-upscale, Upscale, Upper-midscale, Midscale, Economy), By Hotel Type (Extended Stay, Residence, Select Service), Growth Prospects, Regional Outlook & Forecast, 2024 - 2032

Hotel Franchise Market Size - By Chain Value (Luxury, Upper-upscale, Upscale, Upper-midscale, Midscale, Economy), By Hotel Type (Extended Stay, Residence, Select Service), Growth Prospects, Regional Outlook & Forecast, 2024 - 2032

Global Hotel Franchise Market Size will record more than 7.5% CAGR from 2024 to 2032 due to evolving consumer preferences that emphasize personalized experiences and the convenience of online booking platforms.

For instance, the regional statistics from 2022 concerning guest nights spent in short-term rental accommodations reserved through platforms like Airbnb, Booking, Expedia Group, or TripAdvisor reveal that the expansion of platform tourism since before the pandemic is distributed disparately throughout Europe. Specifically, in 2022, the cumulative guest nights in the European Union surged by approximately 7%, rising from 512 million in 2019 to 547 million in 2022.

Technological advancements further streamline operations and enhance guest interactions. These drivers, combined with a growing demand for tailored travel experiences, fuel the momentum of hotel franchises globally. As the industry continues to innovate and adapt, the resilience of the franchise model remains evident, promising continued growth and opportunities in the ever-evolving hospitality sector.

The hotel franchise market is classified based on chain value, hotel type, and region.

The upper-midscale chain value segment will grow significantly through 2032 as the upper-midscale hotel franchise offers a balance between affordability and quality. This segment caters to travelers seeking comfortable accommodations without compromising amenities and service standards. With a focus on delivering consistent experiences across various locations, upper-midscale chain value franchises have garnered a loyal customer base, contributing significantly to the overall growth and stability of the market.

The hotel franchise market share from the select service hotel type segment will generate massive revenue in the market by 2032 as it is a cost-effective option for both business and leisure travelers, select service hotels prioritize essential amenities and services while eliminating non-essential offerings, allowing for competitive pricing and increased profitability. The flexibility and efficiency offered by select service franchises appeal to budget-conscious travelers, driving demand and expansion within this market segment.

Europe hotel franchise industry will expand significantly by 2032, owing to the dynamic trends and evolving consumer preferences shaping the landscape. With diverse cultures, languages, and travel preferences across the continent, European hotel franchises must adapt and innovate to remain competitive. The region boasts a mix of traditional and modern accommodations, catering to a wide range of travelers from across the globe. Factors such as sustainable tourism practices, cultural preservation, and technological integration play crucial roles in shaping the strategies and offerings of hotel franchises operating in Europe.