Published: August 2026
Updated Recession Risk Analysis & Forecasts
The Hostels and Guest Houses industry has sustained solid 10.5% annual growth over the past three years, expanding to $1.6 billion in 2025. Market conditions demonstrate strengthening demand across diverse traveler demographics beyond traditional backpacker segments, with particularly strong performance in properties offering both shared and private accommodations. Key growth drivers include value-conscious traveler growth amid inflationary pressures, social connection seeking among solo travelers, and upgraded hostel concept development appealing to broader customer segments. The segment benefits from higher per-bed revenue density while navigating operational challenges from high-touch service requirements. Growth continues through facility modernization enhancing appeal beyond traditional budget travelers, community experience development differentiating from standard accommodations, and hybrid accommodation models offering both private and shared options addressing diverse traveler preferences across budget-conscious segments.
Hostels and Guest Houses Industry Definition
Companies in this industry provide budget-oriented shared or private accommodations. Core activities include maintaining dormitory-style or basic private rooms, offering shared facilities, creating social environments, providing budget lodging options, and facilitating traveler interaction. These businesses offer economical accommodations emphasizing value and social connection. They provide simplified lodging options that minimize costs through shared facilities, limited services, or basic amenities, often appealing to young travelers, backpackers, and budget-conscious guests seeking affordable accommodations and opportunities to meet fellow travelers.
Guest houses, Tourist homes, Housekeeping cabins and cottages, Youth hostels
Hostels and Guest Houses Industry Statistics
This market research report utilizes the most extensive set of business surveys as the foundation for over 100 market research data sets with extensive historical data (2017-2025), statistics, trend analysis, and forecasts for 2026 & the next 5 years.
This report includes market size, growth, sales & cost trends, industry dynamics, operating expenses for 26 categories, profitability, employee productivity, 10 financial ratios, 31 balance sheet metrics, extensive statistics by state and Metropolitan Statistical Area (MSAs), workforce composition statistics, market share for top 50 companies, inflation, payroll and pay range data on 46 jobs, product line breakdown, industry data sets segmented by business size, concentration, and business structure, and much more.
Below are a few of the statistics included in this extensive 78-page market research report:
MARKET SIZE
In 2025, industry revenue was $1.6 billion
NUMBER OF COMPANIES
There are 1,434 companies in the industry
MARKET GROWTH
The 5-year annual growth rate averaged 9.2%
MARKET SHARE
The top 4 companies have 17.1% market share
REVENUE PER LOCATION
The average sales per location is $1.1 million
INFLATION & PRICING
Over the past 5 years, inflation averaged 2.8%
For unprofitable firms, the avg. net loss is -17.2%
EMPLOYEE PRODUCTIVITY
Revenue per employee is $168,315
OPERATING EXPENSE BENCHMARKS
2.8% of expenses is spent on professional services
PAY BENCHMARKS
In 2025, avg. pay per employee was $34,280
ORGANIZATIONAL BENCHMARKS
2% of employees are in business ops & finance
JOB PAY RANGES
The avg. hourly pay for finance jobs is $29.48
Instantly download the 2026 Hostels and Guest Houses U.S. Market Research Report to access over 100 data sets on the industry.
Hostels and Guest Houses Report Format
The 2026 Hostels and Guest Houses Market Research Report is 78 pages of extensive data, trends, forecasts, benchmarks, analysis, and charts on the industry. Below are select page images from the report and scroll further down for the table of contents and a sample of the report.
Sample Report
Download the full sample report below. The Hostels and Guest Houses Market Research Report will have the same format and data sets.
Table of Contents – Hostels and Guest Houses Report
1-2 Report Overview & Table of Contents
3 Industry Overview
– Methodology
– Industry Definition & Examples
– Market Commentary
4 Industry Snapshot – Revenue & Growth
5 Industry Snapshot – Costs & Profitability
Section One
REVENUE & GROWTH BENCHMARKS
7 Industry Growth Details
– Industry Revenues
– Number of Companies & Locations
– 2017-2030 Trends & Forecasts
8 Growth Benchmarks
– Revenues per Company & Locations
– Locations per Company
– 2017-2030 Trends & Forecasts
9 Breakdown of Product Lines
– Percentage of Revenue from Product Lines
10 BCG Income vs. Revenue Growth Matrix
– Service Subsectors vs. Industry
11 Total Revenue by Industry Segments
– Concentration (Top 4, next 4, next 12, next 30 largest companies)
– Business Size (1-4 employees, 5-9 employees, 10-19, 20-49, 50-99, 100-249, 250+)
– Business Structure (C-Corporations, S-Corporations, Partnerships, Sole Proprietorships)
– Franchise Segments
12 Total Revenue per State
– Revenue per State and State Rankings
13 Sales per Capita by State
14-17 Revenue per Metropolitan Statistical Area
18-21 Revenue per Capita per Metropolitan Statistical Area
22 Revenue per Company by Industry Segment
– Concentration, Business Size, & Business Structure
23 Revenue per Location by Industry Segment
– Concentration, Size, Structure, & Franchise
24 Revenue per Location by State
– Revenue per Location and State Rankings
25-28 Revenue per Location per MSA
29 Industry Segmentation by Business Size
30 Industry Consolidation Analysis
– By Business Size Segments
– Revenue, Companies, Locations & Employees
– 2020 vs. 2025 by Business Size
31 Industry Consolidation Benchmarks
32 Industry Segmentation by Top 50 Companies
– Segments include top 4, next 4, next 12, next 30, and top 50 companies by revenue
– Revenue, Locations, Employees & Payroll
33 Sector Concentration Benchmarks
– % of Sector Revenue from the Top 50 Companies for 12 Sectors
34 Industry Segmentation by Business Structure
– Revenue, Companies, Locations, Employees & Payroll
35 Pricing & Inflation
– 2017-2030 Trends & Forecasts
– Monthly Inflation Figures for the Past 4 Years
36 Service Subsector Growth
– Revenue and 5-Year CAGR for 12 Subsectors
37 Service Subsector Analysis
– Revenue per Company & Location
38 Service Subsector Analysis
– Revenue & Payroll per Employee
SECTION TWO
COST & FINANCIAL ANALYSIS
40 Profitability & Financial Ratio Analysis
– Percent of Companies that are Profitable
– Average Net Income as a Percent of Revenue
– Financial Ratios – 10 ratios, such as Total Asset
Turnover, Assets to Liabilities, Return on
Net Worth, Solvency Ratio
41 Balance Sheet Benchmarks
– Assets and Liabilities indexed to industry revenue at 100
– Current & Non-Current Assets
– Short-term, Long-term Liabilities, & Net Worth
42 Operating Expenses
– 2017-2030 Trends & Forecasts
43 Operating Expenses by Company & Location
– Operating Expenses per Company & Location
– 2017-2030 Trends & Forecasts
44 Operating Expense Detail
– Employee Expenses: Annual Payroll, Health Insurance, Defined Benefit Pension Plans, Defined Contribution Plans, Other Fringe Benefits, Contract Labor Costs, Incl. Temporary Help
– Property Expenses: Lease and Rent for Buildings, Offices, Stores, Repairs and Maintenance to Buildings, Purchased Electricity, Purchased Fuels (except motor fuels), Water, Sewer, Refuse, Other Utility Payments
– Equipment Expenses: Expensed Equipment: Lease and Rent for Machinery and Equip., Repairs, Maint. to Machinery and Equip., Depreciation and Amortization Charges, Other Materials, Parts, and Supplies
– IT Expenses: Data Processing & Other Computer Services: Communication Services: Expensed Purchases of Software
– Miscellaneous Expenses: Advertising and Promotional Services, Professional and Technical Services, Taxes and License Fees
45 Productivity & Industry Employment
– Revenue per Employee
– Total Industry Employees
– Employees per Company
– 2017-2030 Trends & Forecasts
46 Employee Productivity by Segments
47 Employee Productivity by State
48-51 Employee Productivity per MSA
52 Industry Payroll
– Payroll per Employee, Company & Location
– 2017-2030 Trends & Forecasts
53 Workforce Composition Benchmarks
– 26 Job Categories
– Management & Finance
– Sales & Marketing
– Technology, Engineering, Science
– Service, Support & Training
– Operations
– Percent of Industry Employees
54 Job Categorization Pay Ranges
– 26 Job Categories
– Pay Bands – Bottom 10% & 25%, Mean, Top 25% & 10%
– Pay Bands (10%, 25%, Mean, 75%, 90%)
55 Top 20 Jobs Breakdown
– Percent of Total Employees by Job
– Rank Ordered by Top 20 Job Categories
56 Pay Ranges of Top 20 Jobs
57 Payroll per Company by Segments
58 Payroll per Location by Segments
59 Payroll per Employee by Segments
60 Payroll per Employee by State
61-64 Payroll per Employee per MSA
65 Employees per Company by Segments
– Concentration, Business Size, & Business Structure
66 Employees per Company by Segments
– Concentration, Business Size, Structure, & Franchise
67 Total Employment by State
68 Population to Every Employee by State
69-72 Total Employment per MSA
73 Locations per Company by Segments
74-77 Locations per MSA
78 About Kentley Insights
Report & Industry Details
NAICS Code: 721199
Number of Pages: 78
Format: PDF
Price: $295
Support Contact: Email us at support@kentleyinsights.com or call us at 1-800-613-3611
Key Questions Answered in this Market Research Report
How do professionals use this report?
Professionals utilize this report for industry research, market sizing and evaluation, forecasting, strategic planning, sales & marketing strategy, due diligence, valuations, benchmarking, streamlining, and other analyses.
What is the market size of the hostels and guest houses industry?
This report covers the historical industry market size (2017-2025), and forecasts for 2026 and the next 5 years. This report also includes market share of the top 50 companies.
What is the outlook for the industry?
This report has dozens of market forecasts (2025 & 5 years) on total sales, companies, employees, productivity, inflation, compensation, operating expense, and others.
What industry analysis/data exists for the industry?
This report covers over 100+ data sets on the hostels and guest houses industry. Check out the table of contents for all the data sets and analyses.
What segmentations are there on the hostels and guest houses industry?
This report segments the industry many ways including by business size, concentration (Top 50 companies), business structure, state, MSAs, and product lines.
What are the financial metrics for the industry?
This report covers many financial metrics for the industry including profitability, growth, opex / revenue, 31 balance sheet items organized by liabilities, assets, and equity, and 10 financial metrics including return on sales, asset turnover, liability ratio, and net worth ratio.
What are important benchmarks for the industry?
Some of the most important benchmarks for the industry include market share, sales growth, employee productivity, operating expense breakdown, product line breakdown, span of control, and organizational composition. This report includes all of them and many more.
Hostels and Guest Houses Product Lines Analyzed
Room or unit accommodation for travelers
Meals, snacks, other food items, and nonalcoholic beverages, prepared and served or dispensed, for immediate consumption
Rental services for recreational, sports, and fitness equipment (including boats, motorcycles, other sports vehicles, and musical instruments)
Recreational vehicle and tent sites for travelers
Retail sales of household and personal goods, not elsewhere classified
Alcoholic beverages, prepared and served or dispensed for immediate consumption
Other service revenue, not elsewhere classified
Meals, snacks, other food items, and beverages prepared for catered events
Retail sales of candy, prepackaged cookies, and snack foods
Industry Jobs Analyzed
Gambling Services Workers
Building Cleaning Workers
Waiters and Waitresses
Security Guards and Gambling Surveillance Officers
Cooks
First-Line Supervisors of Entertainment and Recreation Workers
Bartenders
Cashiers
Dining Room and Cafeteria Attendants and Bartender Helpers
Supervisors of Food Preparation and Serving Workers
Maintenance and Repair Workers, General
Hotel, Motel, and Resort Desk Clerks
Dishwashers
Gambling Cage Workers
Miscellaneous Entertainment Attendants and Related Workers
First-Line Supervisors of Office and Administrative Support Workers
Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop
Miscellaneous Installation, Maintenance, and Repair Workers
First-Line Supervisors of Building and Grounds Cleaning and Maintenance Workers
Baggage Porters, Bellhops, and Concierges
States Covered
Arizona
Arkansas
California
Colorado
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kentucky
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
New Hampshire
New Mexico
New York
North Carolina
Oklahoma
Oregon
Pennsylvania
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Metropolitan Statistical Areas (MSAs) Covered
Albuquerque, NM
Allentown-Bethlehem-Easton, PA-NJ
Anchorage, AK
Asheville, NC
Atlanta-Sandy Springs-Roswell, GA
Atlantic City-Hammonton, NJ
Austin-Round Rock, TX
Bangor, ME
Barnstable Town, MA
Baton Rouge, LA
Beaumont-Port Arthur, TX
Beckley, WV
Bend-Redmond, OR
Bismarck, ND
Boise City, ID
Boston-Cambridge-Newton, MA-NH
Boulder, CO
Buffalo-Cheektowaga-Niagara Falls, NY
Burlington-South Burlington, VT
Cape Coral-Fort Myers, FL
Carbondale-Marion, IL
Charlotte-Concord-Gastonia, NC-SC
Charlottesville, VA
Chattanooga, TN-GA
Chicago-Naperville-Elgin, IL-IN-WI
Chico, CA
Cleveland, TN
Cleveland-Elyria, OH
Colorado Springs, CO
Columbus, OH
Corpus Christi, TX
Crestview-Fort Walton Beach-Destin, FL
Cumberland, MD-WV
Dallas-Fort Worth-Arlington, TX
Dalton, GA
Decatur, AL
Denver-Aurora-Lakewood, CO
Detroit-Warren-Dearborn, MI
Duluth, MN-WI
Eau Claire, WI
Eugene, OR
Fairbanks, AK
Farmington, NM
Fayetteville-Springdale-Rogers, AR-MO
Flagstaff, AZ
Fort Collins, CO
Fort Smith, AR-OK
Fresno, CA
Gainesville, GA
Gettysburg, PA
Glens Falls, NY
Grand Junction, CO
Grants Pass, OR
Green Bay, WI
Gulfport-Biloxi-Pascagoula, MS
Hammond, LA
Hartford-West Hartford-East Hartford, CT
Hinesville, GA
Hot Springs, AR
Houston-The Woodlands-Sugar Land, TX
Idaho Falls, ID
Indianapolis-Carmel-Anderson, IN
Jackson, TN
Jacksonville, FL
Johnson City, TN
Kahului-Wailuku-Lahaina, HI
Kalamazoo-Portage, MI
Kennewick-Richland, WA
Knoxville, TN
Lancaster, PA
Las Vegas-Henderson-Paradise, NV
Los Angeles-Long Beach-Anaheim, CA
Madera, CA
Madison, WI
Mansfield, OH
Medford, OR
Miami-Fort Lauderdale-West Palm Beach, FL
Milwaukee-Waukesha-West Allis, WI
Minneapolis-St. Paul-Bloomington, MN-WI
Missoula, MT
Morristown, TN
Mount Vernon-Anacortes, WA
Napa, CA
Naples-Immokalee-Marco Island, FL
Nashville-Davidson–Murfreesboro–Franklin, TN
New Orleans-Metairie, LA
New York-Newark-Jersey City, NY-NJ-PA
Niles-Benton Harbor, MI
North Port-Sarasota-Bradenton, FL
Norwich-New London, CT
Ocean City, NJ
Omaha-Council Bluffs, NE-IA
Orlando-Kissimmee-Sanford, FL
Oshkosh-Neenah, WI
Oxnard-Thousand Oaks-Ventura, CA
Palm Bay-Melbourne-Titusville, FL
Pensacola-Ferry Pass-Brent, FL
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
Phoenix-Mesa-Scottsdale, AZ
Pittsburgh, PA
Portland-South Portland, ME
Portland-Vancouver-Hillsboro, OR-WA
Port St. Lucie, FL
Prescott, AZ
Providence-Warwick, RI-MA
Provo-Orem, UT
Rapid City, SD
Redding, CA
Reno, NV
Riverside-San Bernardino-Ontario, CA
Rochester, MN
Rochester, NY
Sacramento–Roseville–Arden-Arcade, CA
St. Cloud, MN
St. Louis, MO-IL
Salem, OR
Salinas, CA
Salisbury, MD-DE
Salt Lake City, UT
San Antonio-New Braunfels, TX
San Diego-Carlsbad, CA
San Francisco-Oakland-Hayward, CA
San Jose-Sunnyvale-Santa Clara, CA
San Luis Obispo-Paso Robles-Arroyo Grande, CA
Santa Cruz-Watsonville, CA
Santa Fe, NM
Santa Maria-Santa Barbara, CA
Santa Rosa, CA
Savannah, GA
Scranton–Wilkes-Barre–Hazleton, PA
Seattle-Tacoma-Bellevue, WA
Sioux City, IA-NE-SD
Spokane-Spokane Valley, WA
Springfield, MO
Syracuse, NY
Tampa-St. Petersburg-Clearwater, FL
Tulsa, OK
Urban Honolulu, HI
Utica-Rome, NY
Visalia-Porterville, CA
Warner Robins, GA
Washington-Arlington-Alexandria, DC-VA-MD-WV
Watertown-Fort Drum, NY
Wenatchee, WA
Worcester, MA-CT
Youngstown-Warren-Boardman, OH-PA
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