CHICAGO, Illinois—JLL’s Hotels & Hospitality Group released its annual Global Hotel Investment Outlook, forecasting a continued increase in global hotel investment volumes for 2026. The report identifies that strong debt markets, record dry powder, and reestablished confidence in the sector’s resilience are creating optimal conditions for accelerating investment activity in 2026.
2025 Delivered Strong Rebound Amid Uneven Performance
Global hotel transaction volumes demonstrated significant momentum in 2025, with direct investment up 22 percent from the 2023 trough. The Americas region led growth with a 27 percent increase in transaction volumes, while EMEA posted a 4 percent growth. Asia Pacific experienced a 20 percent decline, though resilient travel volumes and performance fundamentals position the region for a rebound in 2026.
While RevPAR growth was moderating after several years of above-average trends, performance remained uneven across markets. Cities like Miami that led pandemic recovery normalized, while those that were slower to recover, like San Francisco, and some Asia Pacific markets experienced outsized growth in 2025. This divergence reflected varying recovery patterns, business travel return rates, and differences in room supply additions.
Hotels reclaimed their historical share of commercial real estate investment, accounting for approximately 8 percent of global investment volumes in 2025, surpassing the long-term average and demonstrating the sector’s renewed appeal to institutional investors.
Factors Driving 2026 Outlook
Several key factors are driving the positive investment outlook for 2026:
- Robust travel demand: Global air passenger volumes are projected to grow 4.9 percent year-over-year, with Asia Pacific leading at 7.3 percent growth.
- Supply constraints create value: Slower supply growth across major markets will underpin the performance of existing hotels, with most major U.S. cities showing construction pipelines below 2 percent of existing supply.
- Improved capital market conditions: Debt markets have strengthened globally with increased lender appetite and better pricing, while equity capital remains abundant, supporting increased transaction activity.
Regional Outlook
The report showed that luxury resorts and trophy assets are emerging as top investment targets. The 2026 FIFA Soccer World Cup and America’s 250th anniversary celebrations were also expected to drive significant lodging demand spikes in major cities.
“We’re witnessing a fundamental shift in investor sentiment toward hotels, driven by compelling relative value and the sector’s proven resilience,” said Kevin Davis, chief executive officer, Americas, JLL Hotels & Hospitality Group. “The 2026 FIFA Soccer World Cup represents a unique catalyst for performance in host cities, while constrained supply dynamics create lasting value for existing assets.”
“The era of uniform recovery is decisively over. We’re now in a phase of strategic sorting, where discerning consumers and targeted capital are creating a great divergence in the market. Experience-led, high-quality assets are commanding a significant premium, a trend partly fueled by growing global wealth chasing irreplaceable European hotels,” said Will Duffey, chief executive officer, EMEA, JLL Hotels & Hospitality Group. “This dynamic, coupled with substantial private equity capital on the offense, is creating distinct opportunities—from acquiring trophy assets to large-scale, strategic repositionings. With hotels consolidating a larger share of European real estate investment and a muted construction pipeline supporting values, a compelling window has opened for investors to act.”
Key Themes Shaping Investment Strategy
The report also identified several critical trends for 2026:
- Performance bifurcation drives conviction areas: More uneven RevPAR performance is creating clear winners and losers, with investors increasingly focused on quality assets in prime locations.
- Large-scale transactions return: Improved debt market conditions enable bigger-ticket sales, with transactions over $250 million expected to increase significantly.
- Cross-border capital accelerates: International investment flows are gaining momentum, particularly into UK and European markets.
- Private equity mobilizes: With substantial undeployed capital, private equity firms are positioning themselves to target value-add opportunities, portfolio transactions, and high-quality hotels available below replacement cost across key markets.
Market Fundamentals Signal New Cycle
“Investment market dynamics for the hotel sector have reached an inflection point where structural advantages converge with exceptional capital availability,” concluded Dan Peek, president, Americas, JLL’s Hotels & Hospitality Group. “This rare alignment of favorable supply-demand fundamentals, robust debt markets, and investor conviction creates the foundation for a sustained investment cycle that extends well beyond 2026.”
