The U.S. hotel and hospitality industry in 2025 is experiencing a period of growth. Guest spending is set to hit a record high, surpassing previous years, proving the continued strength of travel and tourism. The hospitality industry directly employs over 2 million people and remains a vital contributor to local and federal tax revenues, supporting communities across the country.

Several key trends are shaping the industry’s future, including a shift toward unique, experience-driven, and sustainable stays. Major international events hosted in the U.S. are also driving increased travel demand. Technology adoption is accelerating, with hotels using AI, cloud-based systems, and smart solutions to enhance guest experiences and streamline operations. Hotel development is evolving to meet changing consumer preferences, with more focus on apartment-style accommodations and innovative dining options. Despite challenges like rising costs and labor shifts, the industry’s ability to innovate and adapt will be crucial for ongoing growth and success.

Below are just a few of the initiatives that offer business grants for hotel businesses:

NASFM Fire Safety Inspections of Hotels/Motels Grant: Provided by the Department of Homeland Security (FEMA), this grant offers funding (recently $40,000) for fire safety inspections and improvements in hotels and motels.

Timothy S.Y. Lam Foundation Hospitality Association Grant: Annual grants (starting at $3,000 for first-time applicants) for hospitality associations and nonprofits to expand educational programming, certification training, and workforce development in the hospitality sector.

San Francisco Accessibility Grant: Small business owners in San Francisco can apply for a grant to enhance accessibility in their establishments. The grant can cover expenses like accessible equipment, construction to remove ADA barriers, CASp inspections, design services, and relevant permit fees, with a maximum grant amount of $10,000.

SBA 8(a) Business Development Program: Designed for minority-owned and socially disadvantaged businesses, this program offers grants, mentoring, and access to government contracts.

FedEx Small Business Grant Contest: Awards up to $50,000 to small businesses, along with FedEx shipping credits and print services.

NASE Growth Grants: Offered by the National Association for the Self-Employed, these grants provide up to $4,000 for business development.

Veteran-Owned Business Opportunities: The Department of Veterans Affairs offers grants and resources for veterans looking to start a hotel business.

USDA Rural Business Enterprise Grants: Aimed at small businesses in rural areas, these grants range from $10,000 to $500,000.

Amber Grant: Every month, WomensNet awards three $10,000 Amber Grants to women-owned businesses in the U.S. or Canada.

HerRise Microgrants are offered by the Yva Jourdan Foundation, the nonprofit arm of HerSuiteSpot, an organization that provides business coaching and training to under-resourced women entrepreneurs, including women of color.

Santander's Cultivate Small Business program helps early-stage entrepreneurs in the food industry, with a focus on women-, immigrant- and BIPOC-owned businesses in low-to-moderate income neighborhoods. Through this program, business owners participate in a 12-week virtual education curriculum that includes mentorship and networking. Business owners also receive up to $20,000 in capital grants.