Hotel funds are back in business

As travel rebounds, investors are betting on hospitality portfolios for long-term growth and stable returns

As global travel returns to pre-crisis levels, hotel investment funds are regaining their shine. Investors are finding renewed confidence in the sector thanks to rising occupancy rates, strategic acquisitions, and diversification into high-demand destinations. The result: hotel funds are once again proving to be a reliable vehicle for long-term growth and stable returns.

Key takeaways

• Travel recovery fuels demand: Rising business travel, leisure tourism, and events are lifting occupancy rates and revenue, creating favorable conditions for hotel investments.
• Diversification advantage: Hotel funds provide exposure to a portfolio of properties — reducing risk compared to single-asset ownership.
• Targeted acquisitions drive returns: Fund managers are acquiring undervalued hotels, improving them through renovations, rebranding, and operational upgrades.
• Investor appetite growing: Institutional investors and high-net-worth individuals are particularly drawn to boutique, resort, and urban hotels aligned with shifting traveler preferences.
• Resilient long-term outlook: Sustainability, digital innovation, and guest experience will shape future performance, with professionally managed funds positioned to outperform.
• Geographic expansion reduces risk: Many funds are branching into emerging markets and tourist hotspots, mitigating exposure to regional economic fluctuations.

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