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JLL Predicts World Hotel Investment Market Growth by 2026

On March 3, 2026, JLL (Jones Lang LaSalle), a leading global real estate services firm, released its report titled "Global Hotel Investment Outlook." The report indicates that global hotel investment is expected to grow steadily in 2026, along with a resilient bond market and a return of confidence in robust hotel assets.

2025’s Recovery and Growth

While there is regional variability, 2025 witnessed a significant rebound in global hotel investments. Direct investments surged by 22% from the low point in 2023, led by a 27% increase in the Americas and 4% in the EMEA (Europe, Middle East, and Africa) regions. However, the Asia-Pacific region experienced a decline of 20%. Nevertheless, strong travel demand and underlying performance fundamentals are expected to drive recovery in this region in 2026.

Despite a slight slowing of revenue per available room (RevPAR) growth, performance disparities across markets remain evident. Cities that led the recovery post-pandemic, such as Miami, have normalized, while some areas with slower recoveries, like San Francisco and certain cities in the Asia-Pacific, showed significant growth in 2025. These variations reflect differences in recovery patterns, business demand, and the availability of hotel rooms.

The hotel sector accounted for approximately 8% of total commercial real estate investments worldwide in 2025, surpassing long-term averages, indicating renewed interest from institutional investors.

Factors Supporting Hotel Investment in 2026

Several key elements underpin the positive hotel investment outlook for 2026:

• - Strong Travel Demand: Global air passenger numbers are anticipated to rise by 4.9%, with particularly buoyant demand in India, China, and Vietnam, leading to a projected 7.3% growth in the Asia-Pacific region.
• - Value Creation from Supply Constraints: A slowdown in supply growth in major markets supports existing hotel performance, with many major U.S. cities projecting new construction at less than 2% of current supply.
• - Improved Capital Market Environment: The bond market conditions have improved globally, encouraging lenders to become more actively involved in hotel investments and enhancing interest rate conditions. Additionally, abundant equity capital is fostering increased transaction activity.

Regional Insights and Investment Opportunities

High-end resorts and trophy assets are gaining traction among institutional investors due to their favorable supply-demand balance, competitiveness, and rarity. Major events, such as the FIFA World Cup in 2026 and the 250th anniversary of the founding of the United States, are also anticipated to significantly boost lodging demand in key cities.

Kevin Davis, CEO of JLL Hotels & Hospitality Group Americas, noted, "The relative value and resilience of hotel assets are changing investor perceptions. Special events, like the FIFA World Cup 2026, enhance hotel performance in host cities, creating sustainable value for existing hotels in areas with limited new construction."

As per Will Duffy, CEO of JLL Hotels & Hospitality Group EMEA, "Gone are the days when all hotel markets experienced similar rebounds. We now find ourselves in a strategic phase where discerning consumers and targeted capital flows create market disparities. High-quality, experience-focused hotels command premium pricing, driven by an increase in global wealth seeking unique European properties. This trend, combined with aggressive private equity funding, is generating unique investment opportunities, from trophy asset acquisitions to substantial strategic shifts in operations."

The Asia-Pacific region presents a favorable forecast, with notable performance from Japan. Major financial institutions are establishing a $500 million fund targeting Japanese real estate, including hotels, with an expected capital raising by the end of the first quarter of 2026. It's projected that in 2026, Japan will account for 35-40% of hotel investments in the Asia-Pacific. The enduring appeal of Singapore as a safe haven and India's growth potential are also creating new strategic investment opportunities.

Nihat Ekin, CEO of JLL Hotels & Hospitality Group Asia Pacific, states, "The hotel investment landscape in the Asia-Pacific is poised for sustained outperformance, fueled by robust structural tailwinds. The region currently leads global passenger growth, supported by an expanding middle class and increasing disposable income. Furthermore, Asian capital is significantly boosting market growth, with major cities' RevPAR ranking among the highest globally. The interconnectedness of Asian markets is generating further cross-border investment opportunities, signaling the beginning of a new cycle of investment growth."

Key Themes for Investment Strategy Towards 2026

• - Dichotomy in Performance Influencing Investment Decisions: The variance in RevPAR across markets is clarifying winners and losers. Investors are focusing on high-quality assets in prime locations.
• - Resurgence of Large Transactions: An improvement in bond markets is expected to significantly increase transactions over $250 million.
• - Acceleration of Cross-Border Investments: The flow of investment funds is accelerating globally, with heightened activity especially in the UK and European markets.
• - Revitalization of Private Equity: Private equity firms with abundant capital are focusing on value-add investments, portfolio transactions, and acquiring high-quality hotels at prices below reconstruction costs.

Market Fundamentals Signalling a New Cycle

Dan Peek, President of JLL Hotels & Hospitality Group Americas, commented, "The hotel investment market is at a turning point, merging structural advantages with exceptional investment capacities. The rare combination of favorable supply-demand fundamentals, a robust bond market, and investor confidence lays the groundwork for an ongoing investment cycle beyond 2026."

According to Yuki Abe, Managing Director and Head of Investment Sales at JLL Japan, "The Japanese hotel investment market stands out as one of the strongest sectors in the Asia-Pacific, driven by continuous interest from global investors and robust operational performance. The inbound visitor numbers are anticipated to reach a record high of approximately 42.7 million by 2025, enhancing average daily rates (ADR) and RevPAR across the nation, particularly in major cities. The investment activity remains vibrant, with stable capital inflows from both domestic and international investors. Japan is expected to continue occupying a significant portion of hotel transaction volumes in the Asia-Pacific in 2026. The high levels of inbound demand, compounded by increased construction costs limiting new supply, alongside solid operating fundamentals, will make Japan's hotel sector a vital investment target for institutional investors going forward."

About JLL

JLL (NYSE: JLL) operates in over 80 countries with a workforce of approximately 113,000 employees. For over 200 years, JLL has supported clients in leasing, buying, investing, managing construction projects, and managing properties across various sectors, including office, retail, industrial, hospitality, residential, and data centers. With a projected revenue of 26.1 billion USD in 2025, JLL ranks among Fortune 500® companies. The company is committed to "Shape the future of real estate for a better world," aiming to create a brighter future in collaboration with clients, employees, and communities. For more in-depth information, visit JLL's website.