- Global hotel investment volume is projected to increase by 15% to 25% in 2025.
- The investment growth is anticipated to be driven by factors such as decelerating supply growth, clarity in debt markets, and the influence of emerging markets.
According to the 2025 Global Hotel Investment Outlook released by JLL’s Hotels & Hospitality Group, the global hotel investment volume is predicted to rise by 15% to 25% compared to 2024. This projection underscores the industry’s resilience and growth potential in adapting to changing travel patterns and consumer preferences.
In 2024, the global hotel market experienced an uneven recovery. Global hotel demand reached 4.8 billion room nights, marking a 102-million increase from 2023. However, while RevPAR (Revenue Per Available Room) increased across all regions, Asia Pacific lagged 10% behind 2019 levels. Global hotel investment volume reached $57.3 billion, a 7% increase from 2023, yet remained 17% below historic levels due to limited portfolio volume and a significant decrease in average deal size.
Looking forward to 2025, several factors are expected to catalyze global hotel investment growth, including impending loan maturities, deferred capital expenditures, private equity fund-life expirations, and moderating RevPAR in some markets. The Americas is predicted to see the largest growth, followed by EMEA (Europe, Middle East, Africa) and APAC (Asia Pacific).
Emerging trends in the hotel industry, such as the blurring boundaries between living, working, and playing, are reshaping the investment landscape. Lifestyle hotels are emerging as the new “third place,” driving expansion into branded residences and alternative accommodations. Additionally, emerging markets, particularly India and Saudi Arabia, are set to play increasingly significant roles in shaping future travel trends, creating new opportunities for development and investment.
Furthermore, the adoption of artificial intelligence (AI) in the hospitality industry is predicted to rise, with strategic implementation of AI being crucial for optimizing hotel operations, enhancing guest experiences, and addressing ongoing labor challenges.
As the global hotel industry enters a pivotal year, the hotel industry stands at a transformative crossroads. Embracing technological innovation and adapting to evolving consumer preferences will be key to unlocking unprecedented value and shaping the future of hospitality.
The report concludes by emphasizing that global real estate investors are increasingly gravitating towards the hotel sector, evidenced by near-historic levels of first-time capital invested in 2024. This dynamic is expected to continue throughout 2025 as hotels emerge as a preferred asset class driven by outsized yields, robust operating performance, and favorable supply dynamics.
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