Hotel investment outlook improves for 2026
Stronger capital markets and sustained travel demand could shape hotel growth and competitive positioning
According to JLL, hotel investment conditions are expected to strengthen in 2026, driven by improved financing availability, continued travel demand, and growing investor confidence in hospitality real estate. This evolving investment climate has direct implications for hotel operators, as ownership expectations, renovation cycles, and competitive dynamics may shift. While performance varies by region, constrained new supply and stable demand trends support cautious optimism. For hoteliers, these developments signal both opportunities and increased pressure to demonstrate asset performance and brand relevance.
Key takeaways
- Investment momentum returning: Increased capital flows into hospitality assets may lead to more transactions, brand repositioning and operational changes affecting hotels.
- Investor expectations rising: Owners are likely to focus more strongly on profitability, efficiency and long-term value creation from hotel operators.
- Demand supporting asset values: Continued travel demand combined with limited new hotel supply may help sustain occupancy and pricing power.
- Regional differences remain: Some markets will recover faster than others, requiring location-specific commercial and distribution strategies.
- Operational performance under scrutiny: Slower RevPAR growth means hotels must focus on revenue optimisation, cost control and channel mix.
- Strategic positioning matters: Hotels with strong distribution, branding and guest experience differentiation are better positioned to benefit from renewed investment activity.
Source: JLL
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