Research Outline

US Independent Hotels/Motels


To provide the number of independent hotels/motels in the US, how they are faring in the wake of the Covid-19 outbreak, trends predicting distress in the hotel/hospitality market, and predicted growth trends in the rental market in the US.

Early Findings

  • Three decades ago, independent hotels represented two-third of the total number of hotels in the US. This figure has plummeted to less than 40% in recent times.
  • There are currently more than 56,000 hotels in the US." Calculating 40% of 56,000 (40/100 * 56,000), there are an estimated 22,400 independent hotels in the US.
  • This reduction is due to some factors including the high rate of annual closures of independent hotels, the age of independent hotel buildings, the advent of more hotel types, and an increase in the supply of midscale hotel types.
  • Another factor causing the reduction in the number of independent hotels is that "they are getting acquired by the large hotel companies or joining them as affiliates to tap into their marketing power." These affiliations are necessary as independent hotels now have to compete with "huge hotel companies with deep pockets as well as competitors on Airbnb."
  • According to a report by STR, big chain hotels have also "been building new hotels at a faster clip than independents" because lenders prefer hotel projects that are affiliated with a large hotel chain" as they are seen as a "less risky investment."