JLL’s Hotels & Hospitality Group announced today has released its annual Global Hotel Investment Outlook, forecasting a continued robust 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% from the 2023 trough. The Americas region led growth with a 27% increase in transaction volumes, while EMEA posted 4% growth. Asia Pacific experienced a 20% decline, though resilient travel volumes and performance fundamentals position the region for a rebound in 2026.

While RevPAR growth is moderating after several years of above-average trends, performance remains uneven across markets. Cities like Miami that led pandemic recovery have normalized, while those that were slower to recover like San Francisco and some Asia Pacific markets experienced outsized growth in 2025. This divergence reflects 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% of global investment volumes in 2025, surpassing the long-term average and demonstrating the sector’s renewed appeal to institutional investors.

Strong fundamentals drive optimistic 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% year-over-year, with Asia Pacific leading at 7.3% growth driven by strong patterns in India, China and Vietnam.
• Supply constraints create value: Slower supply growth across major markets will underpin performance of existing hotels, with most major U.S. cities showing construction pipelines below 2% 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 highlights targeted opportunities

Luxury resorts and trophy assets are emerging as top investment targets, driven by compelling supply-demand dynamics and institutional appetite for irreplaceable assets. The 2026 FIFA Soccer World Cup and America’s 250th anniversary celebrations are 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, CEO, 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. 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. Will Duffey, CEO, EMEA, JLL Hotels & Hospitality Group

Asia Pacific presents a mixed but ultimately promising picture, with Japan standing out as the regional leader. Goldman Sachs is raising a $500 million fund targeting Japanese hotels and aiming to close by the end of the first quarter. Japan is forecasted to represent 35% to 40% of total Asia Pacific hotel transaction volumes in 2026, while Singapore’s safe-haven appeal and India’s promising growth trajectory create additional opportunities for strategic capital deployment.

Asia Pacific’s hospitality investment narrative is being rewritten by powerful structural tailwinds that position the region for sustained outperformance. With Asia Pacific leading global passenger traffic growth — driven by expanding middle classes and rising disposable incomes — we’re seeing Asian capital driving significant market upticks while the region’s gateway cities rank among the best-performing RevPAR markets globally. The interconnected nature of Asian markets creates additional cross-border opportunities, positioning the expected investment volume growth as just the beginning of a new cycle. Nihat Ercan, CEO, Asia Pacific, JLL Hotels & Hospitality Group

Key themes shaping investment strategy

The report identifies 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. 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. Dan Peek, President, Americas, JLL’s Hotels & Hospitality Group

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500^® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.