JLL likes 2026 investment dynamics

• 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.

The JLL 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.

“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.”

Will Duffey, CEO, EMEA, JLL Hotels & Hospitality Group, added, “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 fuelled 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.”

Asia Pacific presents a mixed but ultimately promising picture, according to JLL, 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 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,” said Nihat Ercan, CEO, Asia Pacific, JLL Hotels & Hospitality Group. “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.”

Looking back, global hotel transaction volumes in 2025 were up 22% from the 2023 trough. The Americas region led growth with a 27% increase, while EMEA posted 4% growth. Asia Pacific experienced a 20% decline, though JLL said resilient travel volumes and performance fundamentals position the region for a rebound in 2026.

Hotels also accounted for approximately 8% of global investment volumes in 2025, surpassing the long-term average, according to JLL.