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CHICAGO — 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 per cent to 25 per cent compared to 2024. This 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 10 per cent behind 2019 levels. Global hotel investment volume reached $57.3 billion, a seven-per-cent increase from 2023, yet remained 17-per-cent 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 such as loan maturities, deferred capitals, 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 blurring boundaries between living, working, and playing, are re-shaping 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 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 labour challenges.

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 favourable supply dynamics.

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