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Connected Hotel System Solution Market

ID: MRFR/ICT/37225-HCR
100 Pages
Aarti Dhapte
October 2025

Connected Hotel System and Solution Market Research Report: By System Type (Property Management Systems, Guest Engagement Solutions, Revenue Management Systems, Mobile Applications, IoT Solutions), By Deployment Type (Cloud-based, On-premises, Hybrid), By End Use (Hotels, Resorts, Boutique Hotels, Serviced Apartments, Hostels), By Service Type (Consulting, Installation, Maintenance, Managed Services) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035.

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Connected Hotel System Solution Market Summary

As per MRFR analysis, the Connected Hotel System and Solution Market was estimated at 14.6 USD Billion in 2024. The Connected Hotel System and Solution industry is projected to grow from 15.76 USD Billion in 2025 to 34.01 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.99 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Connected Hotel System and Solution Market is experiencing robust growth driven by technological advancements and evolving consumer preferences.

  • The integration of IoT technologies is transforming operational capabilities in hotels across North America.
  • Data-driven decision making is becoming increasingly vital for enhancing guest experiences in the Asia-Pacific region.
  • Sustainability and eco-friendly solutions are gaining traction as hotels seek to align with emerging consumer values.
  • Rising demand for personalized guest experiences and advancements in smart technology are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 14.6 (USD Billion)
2035 Market Size 34.01 (USD Billion)
CAGR (2025 - 2035) 7.99%

Major Players

Oracle (US), Amadeus IT Group (ES), Sabre Corporation (US), Agilysys (US), Guestline (GB), RoomRaccoon (NL), Mews Systems (CZ), Cloudbeds (US), StayNTouch (US)

Connected Hotel System Solution Market Trends

The Connected Hotel System and Solution Market is currently experiencing a transformative phase, driven by advancements in technology and evolving consumer expectations. Hotels are increasingly adopting integrated systems that enhance guest experiences through automation and personalization. This shift appears to be influenced by the growing demand for seamless connectivity, as travelers seek convenience and efficiency during their stays. Moreover, the integration of Internet of Things (IoT) devices within hotel environments is fostering a more interactive atmosphere, allowing guests to control various aspects of their accommodations through mobile applications. In addition to enhancing guest satisfaction, the Connected Hotel System and Solution Market is also focusing on operational efficiency. Hotels are leveraging data analytics to optimize resource management and streamline processes, which may lead to cost reductions and improved service delivery. Sustainability initiatives are becoming more prominent, as properties aim to reduce their environmental impact through smart technologies. Overall, the market appears poised for continued growth, with innovations likely to shape the future of hospitality in the coming years.

Integration of IoT Technologies

The integration of Internet of Things (IoT) technologies is reshaping the Connected Hotel System and Solution Market. Hotels are increasingly utilizing smart devices to enhance guest experiences, allowing for personalized services and improved operational efficiency. This trend indicates a shift towards more interactive environments, where guests can control room settings and access services through their smartphones.

Data-Driven Decision Making

Data-driven decision making is becoming a cornerstone of the Connected Hotel System and Solution Market. Hotels are harnessing analytics to gain insights into guest preferences and behaviors, which may lead to tailored offerings and improved service delivery. This trend suggests a growing emphasis on understanding customer needs to enhance satisfaction and loyalty.

Sustainability and Eco-Friendly Solutions

Sustainability is emerging as a key focus within the Connected Hotel System and Solution Market. Hotels are adopting eco-friendly technologies to minimize their environmental footprint, such as energy-efficient systems and waste reduction initiatives. This trend reflects a broader societal shift towards responsible tourism and the increasing importance of sustainability in consumer choices.

Connected Hotel System Solution Market Drivers

Advancements in Smart Technology

The Connected Hotel System and Solution Market is significantly influenced by advancements in smart technology. The proliferation of smart devices, such as smart locks, thermostats, and lighting systems, is transforming the hospitality landscape. Hotels are increasingly adopting these technologies to enhance operational efficiency and improve guest experiences. For instance, smart room controls allow guests to adjust their environment through mobile applications, leading to higher satisfaction rates. Market data indicates that the smart hotel market is projected to grow at a compound annual growth rate of 25% over the next five years. This growth is driven by the need for hotels to modernize their offerings and stay competitive. As smart technology continues to evolve, its integration into connected hotel systems will likely become a fundamental aspect of the Connected Hotel System and Solution Market.

Emergence of Sustainable Practices

Sustainability is increasingly influencing the Connected Hotel System and Solution Market. As environmental concerns gain traction, hotels are adopting connected solutions to implement eco-friendly practices. This includes energy management systems that optimize energy consumption and reduce waste. For instance, hotels utilizing smart energy solutions can decrease energy costs by up to 25%. Additionally, connected systems facilitate better resource management, allowing hotels to track and minimize their environmental footprint. The growing consumer preference for sustainable travel options is prompting hotels to showcase their eco-friendly initiatives, which can enhance brand loyalty. As sustainability becomes a core value for travelers, the integration of sustainable practices within connected hotel systems is likely to drive growth in the Connected Hotel System and Solution Market.

Growing Importance of Data Security

Data security has become a paramount concern within the Connected Hotel System and Solution Market. As hotels increasingly rely on connected systems to store and process guest information, the risk of data breaches and cyber threats has escalated. This has prompted hotels to invest in robust cybersecurity measures to protect sensitive data. According to recent studies, nearly 60% of hotel guests express concerns about the security of their personal information. Consequently, hotels that prioritize data security can enhance their reputation and build trust with guests. The implementation of advanced encryption technologies and compliance with data protection regulations are becoming essential components of connected hotel systems. As the focus on data security intensifies, it is likely to drive innovation and investment within the Connected Hotel System and Solution Market.

Increased Focus on Operational Efficiency

Operational efficiency is emerging as a pivotal driver in the Connected Hotel System and Solution Market. Hotels are increasingly adopting connected systems to streamline operations, reduce costs, and enhance service delivery. By utilizing data analytics and automation, hotels can optimize staff allocation, inventory management, and maintenance schedules. This not only improves the guest experience but also contributes to significant cost savings. Reports suggest that hotels implementing connected solutions can reduce operational costs by up to 30%. Furthermore, the ability to monitor and manage resources in real-time allows for proactive decision-making, which is essential in a competitive market. As the hospitality sector continues to evolve, the emphasis on operational efficiency will likely remain a key driver in the Connected Hotel System and Solution Market.

Rising Demand for Personalized Guest Experiences

The Connected Hotel System and Solution Market is witnessing a notable increase in demand for personalized guest experiences. As travelers seek tailored services, hotels are leveraging connected systems to gather and analyze guest data. This data enables hotels to offer customized recommendations, room settings, and amenities, enhancing overall satisfaction. According to industry reports, hotels that implement personalized services can see a revenue increase of up to 20%. This trend is likely to continue as technology evolves, allowing for even more sophisticated personalization strategies. The integration of artificial intelligence and machine learning into connected hotel systems further supports this driver, enabling hotels to anticipate guest needs and preferences. As a result, the focus on personalized experiences is becoming a critical driver in the Connected Hotel System and Solution Market.

Market Segment Insights

By Type: Property Management Systems (Largest) vs. Guest Engagement Solutions (Fastest-Growing)

In the Connected Hotel System and Solution Market, the distribution among key segment values shows Property Management Systems (PMS) holding the largest share, cementing their position as an essential backbone for hotel operations. Conversely, Guest Engagement Solutions are on an accelerated growth trajectory, capturing significant interest among hospitality providers eager to enhance customer interactions. This shift reflects the evolving demands of guests who are increasingly prioritizing personalized experiences and seamless service interactions. The growth of these segments is primarily driven by technological advancements and the rising adoption of digital solutions in hospitality. Property Management Systems benefit from their foundational role in hotel management, while Guest Engagement Solutions derive their momentum from innovations in mobile and IoT technologies. The integration of these systems enables hotels to optimize operations and elevate guest satisfaction, leading to a robust competitive advantage in the marketplace.

Guest Engagement Solutions (Dominant) vs. IoT Solutions (Emerging)

Within the realm of the Connected Hotel System and Solution Market, Guest Engagement Solutions are recognized as a dominant segment, primarily due to their ability to foster personalized guest interactions and enhance loyalty. By utilizing data-driven insights, hotels can tailor communication and services to individual preferences, thus increasing overall guest satisfaction. On the other hand, IoT Solutions represent an emerging segment with immense potential, as they integrate cutting-edge technology to create smart environments within hotels. The growing trend towards automation and connectivity enables hotels to provide innovative features, such as smart room controls and personalized service through connected devices, positioning IoT as a key component for future advancements in hospitality technology.

By Deployment Type: Cloud-based (Largest) vs. On-premises (Fastest-Growing)

In the Connected Hotel System and Solution Market, the deployment type segment is primarily dominated by cloud-based solutions, which have emerged as the largest segment due to their scalability, cost-effectiveness, and flexibility. This segment is favored by hotels seeking to optimize operations and improve guest experiences through advanced technologies. Conversely, the on-premises deployment has witnessed a surge in interest, particularly from luxury and boutique hotels that prefer to maintain control over their data and IT infrastructure. The hybrid models are also gaining traction, providing a blend of both on-premises and cloud-based solutions that cater to the diverse needs of hotels. Growth in this segment is driven by the increasing demand for customizable solutions that combine the best of both worlds—secure data management of on-premises systems with the agility of cloud services. This trend is largely fueled by technological advancements and a shift toward integrated systems that enhance operational efficiency and guest satisfaction.

Cloud-based (Dominant) vs. On-premises (Emerging)

Cloud-based deployment types in the Connected Hotel System and Solution Market have established dominance due to their ability to offer seamless access to data and applications from anywhere, fostering collaboration and operational efficiency. Additionally, these solutions typically come with lower upfront costs and provide regular updates, making them attractive for hotel operators looking to enhance their technological capabilities without a significant financial burden. On the other hand, on-premises systems, while traditionally viewed as more secure due to localized data storage, are emerging in response to specific market demands for tailored solutions that address bespoke hotel operational needs. Many hotels are seeking to balance robustness with operational control, and this rise reflects a move towards incorporating advanced functionalities while maintaining strategic oversight.

By End Use: Hotels (Largest) vs. Boutique Hotels (Fastest-Growing)

The Connected Hotel System and Solution Market showcases a diverse distribution across various end-use segments, with hotels dominating the landscape. This segment accounts for a significant share, benefiting from the increasing integration of smart technologies to enhance guest experiences and operational efficiency. On the other hand, boutique hotels are emerging rapidly, carving out a niche market as travelers seek personalized and unique experiences. The demand in this sector reflects a broader trend towards customization and innovative service offerings. Growth trends in the Connected Hotel System and Solution Market indicate a shift towards enhanced connectivity and automation among hotels, with technology playing a pivotal role in optimizing guest engagement. The rising expectations for advanced amenities, seamless digital interfaces, and energy-efficient systems drive competition. As the market evolves, boutiques are showcasing unique attractions that leverage technology for personalized services, thus capitalizing on their agility to adapt quickly to changing consumer preferences.

Hotels (Dominant) vs. Hostels (Emerging)

In the Connected Hotel System and Solution Market, hotels are recognized as the dominant segment due to their substantial investments in advanced technologies such as IoT, self-check-in solutions, and integrated management systems that enhance both guest satisfaction and operational efficiencies. With their established infrastructure and higher customer expectations, hotels are well-positioned to implement comprehensive solutions that foster loyalty and repeat business. Conversely, hostels represent an emerging segment, appealing to budget-conscious travelers looking for cost-effective accommodation options. Emerging technologies adopted by hostels often focus on social interaction and community-building features, utilizing shared amenities and fostering collaboration among guests. This segment is adapting to the trends of connectivity, aiming to enhance user experiences while maintaining affordability and a unique social atmosphere.

By Service Type: Consulting (Largest) vs. Managed Services (Fastest-Growing)

In the Connected Hotel System and Solution Market, the service type segment comprises Consulting, Installation, Maintenance, and Managed Services. Consulting services hold the largest share, primarily due to the growing demand for expert advice on implementing advanced technologies in hotel operations. This segment helps hotels to maximize their operational efficiency and enhance guest experiences through tailored strategies and solutions. Installation and Maintenance services are also essential but represent a smaller portion of the market share as compared to Consulting, with Managed Services emerging rapidly due to the increasing trend for outsourcing operational aspects.

Consulting (Dominant) vs. Managed Services (Emerging)

Consulting services play a dominant role in the Connected Hotel System and Solution Market, focusing on strategic insights and optimizations that enhance hotel operations and guest experiences. These services offer personalized advice, enabling hotels to stay competitive by integrating the latest technologies and trends. On the other hand, Managed Services are gaining recognition as an emerging trend, driven by the need for hotels to outsource their IT infrastructure and support functions. This shift enables hotel operators to concentrate on core competencies while benefiting from specialized expertise, scalability, and cost efficiencies, ensuring a rapid growth trajectory in the coming years.

Get more detailed insights about Connected Hotel System Solution Market

Regional Insights

The Connected Hotel System and Solution Market is experiencing notable growth across regional segments, having achieved a valuation of 12.51 USD Billion in 2023 and is projected to reach 25.0 USD Billion by 2032. North America holds a majority share in this market, valued at 5.0 USD Billion in 2023, and is expected to grow to 10.14 USD Billion by 2032, emphasizing its significance in the industry.

Europe follows, with a valuation of 3.5 USD Billion in 2023, set to expand to 7.2 USD Billion, indicating substantial market engagement in the region.The APAC region is also emerging as a critical market, valued at 2.5 USD Billion in 2023 and expected to reach 5.2 USD Billion by 2032, driven by rising tourism and digital transformation trends.

South America and MEA are smaller markets within the Connected Hotel System and Solution Market, valued at 1.0 USD Billion and 0.51 USD Billion, respectively, in 2023, but they showcase the potential for growth, with South America projected to attain 1.8 USD Billion and MEA expected to reach 1.66 USD Billion by 2032 as connectivity becomes increasingly prioritized.Overall, the market dynamics across these regions highlight varying growth drivers, challenges, and opportunities driven by technological advancements and an increasing demand for enhanced customer experiences.

Fig 3: Connected Hotel System and Solution Market Regional Insights (2023-2032)

Connected Hotel System Solution Market Regional Image

Key Players and Competitive Insights

The Connected Hotel System and Solution Market arewitnessing transformative growth as technology and hospitality converge to enhance guest experiences and operational efficiencies. The competitive landscape in this market is shaped by the increasing demand for smart hotel solutions, which integrate IoT, mobile, and data analytics to create a seamless and personalized environment for guests. Players are continually innovating to offer comprehensive systems that enhance connectivity among hotel services, staff, and guests.

This dynamic market is characterized by rapid advancements in technology, strategic partnerships, and evolving consumer preferences, which compel hospitality providers to embrace connectivity solutions to stay competitive.IBM holds a formidable position in the Connected Hotel System and Solution Market, offering a robust suite of solutions aimed at optimizing hotel operations and enhancing guest engagement. With its strong emphasis on artificial intelligence, analytics, and cloud computing, IBM empowers hotels to harness data for informed decision-making and personalized guest experiences.

The company’s extensive research and development capabilities allow it to lead in creating innovative, scalable solutions that drive efficiency and improve the overall guest journey. Its established reputation for reliability and security further strengthens its market presence, making IBM a valuable partner for hotels looking to implement advanced technology solutions for operational excellence.StayNTouch presents a compelling offering in the Connected Hotel System and Solution Market, with a focus on cloud-based mobile solutions that elevate guest engagement and streamline hotel operations.

Known for its user-friendly interface, StayNTouch's products enable hotel staff to manage operations efficiently while providing guests with the freedom to control their experience through mobile devices. The company boasts a strong track record of integrating hotel management systems that facilitate real-time data access, enhancing communication and service delivery. Its commitment to innovation ensures that StayNTouch remains competitive by constantly evolving its solutions to meet the changing demands of the hospitality industry, positioning itself as a frontline player in delivering connected hotel experiences.

Key Companies in the Connected Hotel System Solution Market market include

Industry Developments

  • Q2 2024: ASSA ABLOY acquires Nomadix, expanding connected hotel technology portfolio ASSA ABLOY, a global leader in access solutions, announced the acquisition of Nomadix, a provider of guest-facing network and IoT solutions for hotels, strengthening its position in the connected hotel systems market.
  • Q2 2024: Oracle Hospitality launches OPERA Cloud Digital Assistant for hotels Oracle Hospitality introduced a new AI-powered digital assistant integrated into its OPERA Cloud platform, enabling hotels to offer guests voice-activated room controls and personalized service through connected devices.
  • Q3 2024: IHG Hotels & Resorts partners with Honeywell to deploy smart room controls globally IHG announced a strategic partnership with Honeywell to roll out IoT-enabled smart room controls across its global portfolio, enhancing guest personalization and energy efficiency.
  • Q2 2024: Siemens and Accor sign multi-year deal for connected hotel infrastructure Siemens and Accor entered a multi-year agreement to implement Siemens’ building automation and IoT solutions in Accor hotels, aiming to optimize energy use and guest comfort through connected systems.
  • Q1 2025: Mews raises $110M Series D to expand cloud-based hotel management platform Mews, a provider of cloud-based property management systems for hotels, secured $110 million in Series D funding to accelerate development of its connected hotel solutions and expand into new markets.
  • Q2 2025: Marriott International launches mobile key integration with Apple Wallet Marriott International announced the rollout of mobile room keys compatible with Apple Wallet, allowing guests at select properties to access rooms and amenities using their iPhones and Apple Watches.
  • Q1 2024: Hilton appoints new Chief Digital Officer to drive connected guest experience Hilton named a new Chief Digital Officer tasked with accelerating the company’s digital transformation, including the expansion of connected hotel systems and guest-facing technologies.
  • Q3 2024: Wyndham Hotels & Resorts selects NEC for facial recognition check-in pilot Wyndham Hotels & Resorts partnered with NEC Corporation to pilot facial recognition-based check-in and room access at select properties, aiming to streamline guest arrival and enhance security.
  • Q2 2025: Protel and Samsung announce partnership for in-room IoT integration Protel hotel software and Samsung Electronics announced a partnership to integrate Protel’s PMS with Samsung’s in-room IoT devices, enabling centralized control of lighting, climate, and entertainment for hotel guests.
  • Q1 2025: Minor Hotels opens flagship smart hotel in Singapore with full IoT integration Minor Hotels unveiled its new flagship property in Singapore, featuring comprehensive IoT integration for guest rooms, public spaces, and back-of-house operations, setting a new standard for connected hospitality.
  • Q4 2024: IHG launches AI-powered guest personalization platform across EMEA hotels IHG rolled out a new AI-driven platform to personalize guest experiences and automate service delivery, leveraging connected hotel systems across its EMEA properties.
  • Q3 2025: Choice Hotels acquires StayNTouch to bolster cloud-based hotel operations Choice Hotels completed the acquisition of StayNTouch, a provider of cloud-based property management and guest engagement solutions, to enhance its connected hotel system capabilities.

Future Outlook

Connected Hotel System Solution Market Future Outlook

The Connected Hotel System and Solution Market is projected to grow at a 7.99% CAGR from 2024 to 2035, driven by technological advancements, increased guest expectations, and operational efficiencies.

New opportunities lie in:

  • Integration of AI-driven guest personalization systems
  • Development of IoT-enabled energy management solutions
  • Implementation of mobile check-in and keyless entry technologies

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Connected Hotel System Solution Market Type Outlook

  • Property Management Systems
  • Guest Engagement Solutions
  • Revenue Management Systems
  • Mobile Applications
  • IoT Solutions

Connected Hotel System Solution Market End Use Outlook

  • Hotels
  • Resorts
  • Boutique Hotels
  • Serviced Apartments
  • Hostels

Connected Hotel System Solution Market Service Type Outlook

  • Consulting
  • Installation
  • Maintenance
  • Managed Services

Connected Hotel System Solution Market Deployment Type Outlook

  • Cloud-based
  • On-premises
  • Hybrid

Report Scope

MARKET SIZE 202414.6(USD Billion)
MARKET SIZE 202515.76(USD Billion)
MARKET SIZE 203534.01(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.99% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of artificial intelligence and Internet of Things enhances guest experiences in the Connected Hotel System and Solution Market.
Key Market DynamicsTechnological advancements drive competitive forces, enhancing guest experiences and operational efficiency in connected hotel systems.
Countries CoveredNorth America, Europe, APAC, South America, MEA

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FAQs

What is the projected market valuation of the Connected Hotel System and Solution Market by 2035?

The market is projected to reach a valuation of 34.01 USD Billion by 2035.

What was the market valuation of the Connected Hotel System and Solution Market in 2024?

The market valuation was 14.6 USD Billion in 2024.

What is the expected CAGR for the Connected Hotel System and Solution Market during the forecast period 2025 - 2035?

The expected CAGR for the market during this period is 7.99%.

Which segment is projected to have the highest growth in the Connected Hotel System and Solution Market?

The Cloud-based deployment type is projected to grow from 5.0 to 12.0 USD Billion.

What are the key players in the Connected Hotel System and Solution Market?

Key players include Oracle, Amadeus IT Group, Sabre Corporation, and Agilysys.

How much is the Property Management Systems segment expected to grow by 2035?

The Property Management Systems segment is expected to grow from 4.5 to 10.5 USD Billion.

What is the projected growth for Guest Engagement Solutions by 2035?

Guest Engagement Solutions are projected to grow from 3.0 to 7.0 USD Billion.

What is the expected market size for IoT Solutions in 2035?

IoT Solutions are expected to reach a market size of 6.5 USD Billion by 2035.

Which service type is anticipated to have the highest valuation by 2035?

Maintenance services are anticipated to reach a valuation of 10.01 USD Billion by 2035.

What is the expected growth for Boutique Hotels in the Connected Hotel System and Solution Market?

The Boutique Hotels segment is expected to grow from 2.0 to 4.5 USD Billion by 2035.

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