Global hotel investment volumes are expected to see a “continued robust increase” in 2026, in part due to stronger debt markets, according to JLL Hotels & Hospitality Group’s 2026 Global Hotel Investment Outlook.
Additionally, improvement in the U.S. debt liquidity market will catalyze hotel transaction volumes, Kevin Davis, Americas CEO of JLL Hotels & Hospitality Group, told Hotel Dive.
“There's a lot more transparency and visibility as to where pricing is, so as more things trade, more people have comps to base their valuations on,” he said.
In turn, sellers will have a better idea about pricing, allowing more deals to go through. Large-scale transactions, particularly those valued at more than $250 million, are expected to “increase significantly” in 2026, per the report.
Improved market conditions are favorable to owners who have held onto assets because of dampened markets over the past few years, according to Davis.
“The passage of time where equity would like a repatriation of capital; or an asset needs to be renovated; or there's a loan maturity coming up — those are all motivating factors for sellers, forcing them to bring assets to market,” Davis said.
Private equity is also “back on the offense,” with firms gearing up to deploy capital this year, according to JLL. Family offices and high-net-worth individuals in particular are prepared to buy more hotels, in part “drawn by the relative yield premium that hotels offer,” according to the report.
Steady travel demand, with global air passenger volumes expected to grow 4.9% year over year in 2026, also points to a positive investment outlook, per JLL.
Future of luxury
Although RevPAR is likely to be more uneven across markets in 2026, luxury is expected to be a winning asset class for investors, the report detailed, as luxury consumer spending patterns outpace overall economic growth and fuel interest in unique, high-end travel and experiences.
Global wealth rose by a 9.6% compound annual growth rate from 2015 to 2025, “driving demand for luxury hotels and resorts,” per the report.
Ultra luxury supply, however, is generally moving at a slower pace than demand for such products, which further cements the segment as a “long term winner.”
High-net-worth travelers are “truly price elastic” and are willing to spend big on “special, authentic and irreplaceable experiences,” Davis explained.
“The scarcity of supply, coupled with the fact that the number of billionaires continues to grow around the globe will drive outperformance in the ultra-luxury space,” he said.
Luxury hotel transactions so far this year include Gencom’s acquisition of the 253-key Ritz-Carlton New York and the sale of the 232-key St. Regis Houston.
Event impact
Major events such as the 2026 FIFA World Cup and America’s 250th anniversary are expected to have a powerful effect on the U.S. hospitality industry, shifting investor attitudes. World Cup host cities, for example, are expected to experience mid-double-digit RevPAR growth in 2026, per the report.
"We're witnessing a fundamental shift in investor sentiment toward hotels, driven by compelling relative value and the sector's proven resilience," Davis said in a statement, noting the World Cup, in particular, “represents a unique catalyst for performance in host cities, while constrained supply dynamics create lasting value for existing assets."
For cities like Philadelphia that will be hosting America’s anniversary celebrations, “these are already cities that attract a global traveler base, and so I think the events will only help enhance global inbound travel to some markets,” Davis said.
Headwinds ahead
Hospitality union negotiations are expected to remain an ongoing challenge for the industry in 2026, impacting the underwriting process, per the report.
For example, in New York City, the New York Hotel and Gaming Trades Council’s union contract with the Hotel Association of New York City is set to expire in July. Some of the union’s demands at the bargaining table will include higher wages and increased money for medical and pension benefits.
“That will impose higher labor costs on hotels that are subject to the [collective bargaining agreement] in New York City, and so that's certainly something that the market is keeping an eye on,” Davis said.
