Background. The article is dedicated to justification of a marketing approach to the formation of a hotel business market. The author considers certain problems and contradictions in the development of this market, using the city of Ekaterinburg as an example. Materials and methods. The analysis of statistical information provided by the branch of Federal State Statistics Service in Sverdlovsk region was chosen as the main research method along with the analysis of state and municipal authorities documentation in the field of regulation in the market for personal services. Results . Our research allowed to systematize and describe the factors which define the choice of a marketing strategy in the hospitality industry of the city. It also helped to reveal the barriers and contradictions which restrict the development of the industry in general. Conclusions . The conclusion defines main trends in development of the hotel business and includes recommendations for identifying the foundational directions of the hotel business