Hotels (except Casino Hotels) and Motels Revenue Benchmarks
The average hotels (except casino hotels) and motels business in the United States generates $2.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 44,739 hotels (except casino hotels) and motels businesses in the U.S., employing 1,131,342 workers with an average profit margin of 5.0%. The average employee in this industry earns $41K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Hotels Business Actually Do?
Businesses providing overnight lodging — from budget motels to full-service hotels to boutique properties. Modern hotels are often franchised (Marriott, Hilton) with an owner-operator running each property.
Who buys: Business travelers, leisure travelers, event attendees, extended-stay guests.
Average Revenue
$2.7M
per year
Profit Margin
5.0%
industry average
Revenue / Employee
$106K
per year
Total Businesses
44,739
in the US
Est. Owner Income
$134K
small business avg
Labor Cost
32.0%
of revenue
Avg Employee Wage
$41K
per year (BLS)
Market Saturation
13.5
firms per 100K people
How Much Do Hotels (except Casino Hotels) and Motels Charge?
Hotels price by night with rate optimized daily. ADR (average daily rate) and occupancy are the two operative metrics.
| Service | Typical range |
|---|---|
Economy motel | $50–100/night |
Mid-scale hotel | $100–200/night |
Upscale full-service | $180–400/night |
Luxury | $350–1,500+/night |
Franchise royalty (if branded) | 4–7% of room revenue |
GOP margin target | 25–40% of room revenue |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete hotels business plan
A 12-section data-backed business plan for a hotels (except casino hotels) and motels business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the hotels (except casino hotels) and motels industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Food & beverage costs | $35 | $931K | Ingredients, food, beverages, disposables — the raw cost of what's served. |
Wages & benefits | $32 | $860K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $13 | $339K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $85K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $13 | $339K | Utilities, cleaning, licenses, credit-card processing, kitchen equipment depreciation, insurance. |
Net profit | $5 | $134K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
9.45%
openings/year
Closure Rate
10.1%
closings/year
Net Job Growth
+8.74%
annual
Businesses Closed
4,264
in 2023
Firm Count Trend
Should You Start a Hotels Business?
Startup Cost
$100K – $500K
Break-Even
27 months
5-Year Survival Rate
40.0%
Related Industries
Frequently Asked Questions
- What does a hotels (except casino hotels) and motels business do?
- Businesses providing overnight lodging — from budget motels to full-service hotels to boutique properties. Modern hotels are often franchised (Marriott, Hilton) with an owner-operator running each property. Business travelers, leisure travelers, event attendees, extended-stay guests.
- How much do hotels (except casino hotels) and motels charge?
- Hotels price by night with rate optimized daily. ADR (average daily rate) and occupancy are the two operative metrics. See the pricing table above for typical rates by service type.
- How much does the average hotels (except casino hotels) and motels make per year?
- The average hotels (except casino hotels) and motels business generates $2.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $134K per year at a 5.0% profit margin.
- How many hotels (except casino hotels) and motels businesses are there in the US?
- There are 44,739 hotels (except casino hotels) and motels businesses operating in the United States, employing a total of 1,131,342 workers.
- How much does it cost to start a hotels (except casino hotels) and motels business?
- Startup costs for a hotels (except casino hotels) and motels business typically range from $100K to $500K, with a 5-year survival rate of 40.0%.
- What is the average salary in the hotels (except casino hotels) and motels industry?
- The average employee in the hotels (except casino hotels) and motels industry earns $41K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The hotels (except casino hotels) and motels industry is actively growing — adding jobs at a net rate of 8.7% per year. New establishments are opening faster than existing ones close (9.5% entry vs 10.1% exit), indicating healthy demand.
Approximately 59% of hotels (except casino hotels) and motels businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 4,264 firms in this industry closed permanently.
Employment & Wages
The average employee in the hotels (except casino hotels) and motels industry earns $40,778/year. This is below the national average of ~$65K — typical for this sector. With 61,273 establishments employing 1,514,663 people, the typical business has about 25 employees.
Industry Trend (2000–2023)
The hotels (except casino hotels) and motels industry has grown 28% since 2000 (from 34,485 to 44,237 firms).
See full historical statistics →Compare Hotels (except Casino Hotels) and Motels revenue with other industries: