JLL’s Hotels & Hospitality Group forecast a continued robust increase in global hotel investment volumes for 2026 in its annual Global Hotel Investment Outlook. The report asserts that strong debt markets, a record amount of undeployed capital and reestablished confidence in the sector’s resilience are creating optimal conditions for accelerating investment activity in 2026.

Global hotel transaction volumes demonstrated significant momentum in 2025, with direct investment up 22% from the 2023 trough, according to the report.  The Americas region led growth with a 27% increase in transaction volumes, while Europe/Middle East/Asia 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.

Several key factors are driving the positive investment outlook for 2026, according to the report:

– 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 US 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.

– Luxury resorts and trophy assets are emerging as top investment targets, driven by compelling supply-demand dynamics and institutional appetite for irreplaceable assets. 

Kevin Davis, CEO, said, “We’re witnessing a fundamental shift in investor sentiment toward hotels, driven by compelling relative value and the sector’s proven resilience.” The 2026 FIFA Soccer World Cup, he said, “represents a unique catalyst for performance in host cities, while constrained supply dynamics create lasting value for existing assets.”