Budget Hotels Market Report 2025 (Global Edition)

Global Budget Hotels Market Report 2025 Market Size Split by Type (Limited Service Hotels, Capsule Hotels, Hostels, Motels, Others), by Guest Type (Business Travelers, Leisure Travelers, Families, Oth...

Budget Hotels Market Report Description

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Competitive Landscape of the Budget Hotels Market

There is fierce competition in the low-cost hotel industry, with several companies competing for market share. Global chains, regional brands, independent operators, and newly developed low-cost hotel concepts make up the competitive landscape.

March 2023: With the introduction of 11 new Premier Inn and Hub by Premier Inn brands, Whitbread PLC increased its commercial footprint in the United Kingdom. Source: https://www.whitbread.co.uk/whitbread-adds-eleven-new-and-extended-premier-inn-and-hub-by-premier-inn-hotels-to-its-uk-network-during-its-2022-23-financial-year/.

 

Top Companies Market Share in Budget Hotels Industry: (In no particular order of Rank)

• G6 Hospitality LLC
• Oravel Stays Limited
• B&B HOTELS Group
• ibis Hotel
• Toyoko Inn Co. Ltd.
• Red Roof Inn
• Wyndham Hotels & Resorts Inc.
• Travelodge Hotels Ltd.
• easyHotel
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Budget Hotels Market

Which Region Dominates the Budget Hotels Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024. It accounted for around 40% of the global revenue. The market for low-cost hotels in North America is still robust and flexible, emphasizing accessibility, practicality, and satisfying the changing demands of tourists. Maintaining success in this cutthroat environment will need the capacity to strike a balance between cost-effectiveness and high-quality service. Furthermore, recruiting and keeping consumers will depend on ongoing investments in technology, accommodating booking practices, and improving visitor experiences.

Which Region is Expanding at the Fastest CAGR?

Asia Pacific stands out as the fastest-growing region in the Budget Hotels market. A growing middle class with more discretionary income as a result of economic growth in nations like China and India is driving up demand for reasonably priced travel options. Furthermore, sustainability is becoming more and more important. In an effort to attract environmentally concerned tourists, low-cost hotels are progressively implementing eco-friendly procedures.

 

The current report Scope analyzes Budget Hotels Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Budget Hotels Market Analysis

<P>According to Cognitive Market Research, the global Budget Hotels market size was estimated at USD 284582.6 Million, out of which North America held the major market of more than 40% of the global revenue with market size of USD 113833.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.</P> <ul><li>According to Cognitive Market Research, the US had a major share in the Budget Hotels market with a market size of USD 89814.27 million in 2024 and is projected to grow at a CAGR of 3.0% during the forecast period. The nation's growing technological advancements.</li> <li>The Canada Budget Hotels market had a market share of USD 13659.96 million in 2024 and is projected to grow at a CAGR of 4.0% during the forecast period. Canada's increasing investment.</li> <li>The Mexico Budget Hotels market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD 10358.81 million in 2024.</li></ul>

Asia Pacific Budget Hotels Market Analysis

<P>According to Cognitive Market Research, the global Budget Hotels market size was estimated at USD 284582.6 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 65454.00 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.</P> <ul><li>According to Cognitive Market Research, the China Budget Hotels market size was valued at USD 29454.30 million in 2024 and is projected to grow at a CAGR of 6.5% during the forecast period. Budget Hotels surged in China due to the presence of major hotel chains.</li> <li>The Japan Budget Hotels market is projected to witness growth at a CAGR of 5.5% during the forecast period, with a market size of USD 9032.65 million in 2024.</li> <li>The India Budget Hotels market had a market share of USD 7854.48 million in 2024 and is projected to grow at a CAGR of 8.8% during the forecast period. India's increasing urbanization.</li> <li>The South Korean Budget Hotels market is projected to witness growth at a CAGR of 6.1% during the forecast period, with a market size of USD 6545.40 million in 2024.</li> <li>The Australian Budget Hotels market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 3403.61 million in 2024.</li> <li>The South East Asia Budget Hotels market is projected to witness growth at a CAGR of 8.0% during the forecast period, with a market size of USD 4516.33 million in 2024.</li> <li>The Rest of Asia Pacific Budget Hotels market is projected to witness growth at a CAGR of 6.8% during the forecast period, with a market size of USD 4647.23 million in 2024.</li></ul>

South America Budget Hotels Market Analysis

<P>According to Cognitive Market Research, the global Budget Hotels market size was estimated at USD 284582.6 Million, out of which the Latin America market has more than 5% of the global revenue with a market size of USD 14229.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031. .</P> <ul><li>According to Cognitive Market Research, the Brazil Budget Hotels market size was valued at USD 6090.07 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period. Budget Hotelss flourished in Brazil due to the growing investment.</li> <li>Argentina's Budget Hotels market had a market share of USD 2390.49 million in 2024 and is projected to grow at a CAGR of 5.3% during the forecast period. Argentina's rising expansion.</li> <li>Colombia Budget Hotels market is projected to witness growth at a CAGR of 4.2% during the forecast period, with a market size of USD 1266.39 million in 2024.</li> <li>Peru Budget Hotels market is projected to witness growth at a CAGR of 4.6% during the forecast period, with a market size of USD 1166.79 million in 2024.</li> <li>Chile Budget Hotels market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 1024.50 million in 2024.</li> <li>The Rest of Latin America's Budget Hotels market is projected to witness growth at a CAGR of 3.5% during the forecast period, with a market size of USD 2290.89 million in 2024.</li></ul>

Middle East Budget Hotels Market Analysis

<P>According to Cognitive Market Research, the global Budget Hotels market size was estimated at USD 284582.6 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 5691.65 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031..</P> <ul><li>The GCC Countries Budget Hotels market is projected to witness growth at a CAGR of 5.5% during the forecast period, with a market size of USD 2436.03 million in 2024. Budget Hotels sales flourish due to the presence of major market players.</li> <li>The Egypt Budget Hotels market is projected to witness growth at a CAGR of 5.0% during the forecast period, with a market size of USD 597.62 million in 2024.</li> <li>The South Africa Budget Hotels market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 899.28 million in 2024. Budget Hotels sales flourish in South Africa due to regulatory support.</li> <li>The Turkey Budget Hotels market is projected to witness growth at a CAGR of 4.2% during the forecast period, with a market size of USD 489.48 million in 2024.</li> <li>The Nigeria Budget Hotels market is projected to witness growth at a CAGR of 3.8% during the forecast period, with a market size of USD 597.62 million in 2024.</li> <li>The Rest of MEA Budget Hotels market is projected to witness growth at a CAGR of 3.7% during the forecast period, with a market size of USD 671.61 million in 2024.</li></ul>

Budget Hotels Market Analysis

How are Segments Performing in the Global Budget Hotels Market?

Budget Hotels Market Type Segment Analysis

According to Cognitive Market Research, Limited Service Hotels stands out as the dominant category over the projected period. Limited-service hotels are utilizing technology to enhance guest satisfaction and optimize operations. More hotels are using mobile room keys, in-room technological controls, and contactless check-in/check-out to streamline operations and reduce in-person interactions. Hotels are paying close attention to the needs and desires of its visitors while designing rooms and common areas. Travelers' comfort and utility are taken care of with multifunctional spaces, comfortable furnishings, and adaptable room layouts. Many limited-service hotels are implementing environmentally friendly practices in response to growing environmental concerns. They are progressively incorporating energy-efficient lighting, water-saving devices, and waste reduction programs into their everyday operations.

Motels emerges as the fastest-growing category in the budget hotels market. Short-term stays at motels are popular among cost-conscious business visitors, especially those from small and medium-sized businesses (SMEs). Motels are a popular choice for business travel because of their affordability and ease of use.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Budget Hotels Industry. Request a Free Sample PDF!

Guest Type Segment Analysis of Budget Hotels Market

Market segmentation by Guest Type is another crucial element in understanding the dynamics of the Budget Hotels industry. Applications refer to the specific uses or end-user industries that drive demand for the Budget Hotels products or services. These can vary widely, depending on the nature of the market, ranging from healthcare, manufacturing, and retail to more specialized sectors like aerospace, automotive, and telecommunications. By breaking down the market according to its applications, businesses can gain insight into which industries are adopting Budget Hotels-related solutions most effectively, and where new opportunities are emerging.

Moreover, analyzing application trends helps in recognizing which industries are growing faster, where innovations are occurring, and which markets are saturated, allowing businesses to strategically position themselves in the most promising areas of the market. Get in touch with us to receive industry-specific insights tailored to your needs
 

Some of the key Guest Type of Budget Hotels are:

• Business Travelers
• Leisure Travelers
• Families
• Other

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Budget Hotels Mode of Booking Segment Analysis

• Online Travel Agency
• Hotel Websites
• Direct Booking
• Others

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion