JLL’s Hotels & Hospitality Group reported that U.S. hotel transaction volume increased 17.5% year-over-year to $24 billion in 2025, with New York recording the highest activity at $3.7 billion.
JLL’s Hotels & Hospitality Group released its 2025 U.S. Hotel Investment Trends Report, stating that the U.S. hotel investment market recorded a 17.5% year-over-year increase in transaction volume, reaching $24 billion in 2025. The report attributes the increase to activity from private equity and changes in debt markets.
The report identifies New York as the leading market in 2025, with $3.7 billion in transaction volume across 29 trades. Phoenix followed with $1.5 billion and 22 trades, and Washington, D.C. recorded $1.2 billion with 22 trades. JLL notes that several large-scale transactions contributed to these volumes in key urban and growth markets.
JLL’s data indicate a shift in buyer composition, with increased participation from high-net-worth individuals and foreign capital, alongside ongoing private equity activity. The report states that this diversification reflects the market’s recognition of hotels’ value, citing discounts to replacement costs and yield profiles compared to other property sectors.
According to JLL, the debt market environment has changed since September 2024, when the Federal Reserve began lowering interest rates. The company states that the overall cost of debt has decreased by almost 300 basis points since then, which has contributed to increased investment activity by providing favorable leverage for investors.
JLL reports that 2025 hotel operating performance showed a K-shaped recovery. Revenue per available room (RevPAR) for luxury properties increased by 3% over 2024, while RevPAR for midscale and economy segments decreased by 2.8% and 4.4%, respectively.
The report cites JLL’s 2026 analysis, indicating that World Cup host cities may see substantial opportunities. JLL cites historical data showing Super Bowl games have contributed an average of 2.8 percentage points to annual market RevPAR, and states that the World Cup’s longer duration and international appeal could lead to higher RevPAR growth in host cities. The report notes that the tournament will feature more than 70 games over 39 days.
JLL expects new hotel supply growth to remain below the long-term average of 1.7% annually. The report also notes that urban markets accounted for 43% of transaction volume in 2025.
