Hotel Industry Executives Anticipate U.S. Hotel Values to Rise under Trump Administration

• The U.S. hotel industry is likely to witness an increase in hotel values in the upcoming years, influenced by economic expansion and further interest rate reductions.
• Hotel industry executives anticipate that President-elect Donald Trump’s second term will stimulate this growth due to beneficial tax policies, deregulation, and appointments to the National Labor Relations Board.

The U.S. hotel industry experienced increased transactions in 2024 following a slowdown. A primary factor contributing to a decline in deal volume was the bid-ask spread, where buyers and sellers could not agree on a hotel’s value. However, this spread has begun to narrow as owners and investors gain a clearer understanding of valuations, largely due to reduced interest rates.

According to JLL’s analysis, hotel values have generally undergone a reset in recent years, with some market-specific exceptions. Dan Peek, president of JLL Hotels & Hospitality Group, indicated that hotel valuations are predicted to rise in 2025 and 2026, propelled by economic expansion and further reductions in interest rates. Transaction volumes are expected to increase, particularly in major urban markets benefitting from a recovery in corporate transient and group segments.

In anticipation of President-elect Donald Trump’s second term, many hoteliers believe that the values of their properties will receive a further boost. An informal poll conducted at a recent Lodging Industry Investment Council meeting found that 65% of attendees expect hotel values to increase under Trump’s administration. These expectations are primarily grounded in potential benefits from GOP policies, including taxation, regulation, and appointments to the National Labor Relations Board.

Despite these optimistic projections, some industry executives express concerns over potential negative impacts, including increased debt due to tariffs and the threat of rising labor costs. Despite these potential challenges, the consensus among executives is an optimistic outlook for the industry’s future under the upcoming Trump administration.

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