Investments | Lifestyle Hotels with branded residences and alternative accommodations in focus

Global hotel investment volume in 2025 will increase by 15% to 25% compared to 2024, according to the Global Hotel Investment Outlook report by JLL's Hotels & Hospitality Group.

Who is JLL's Hotels & Hospitality Group? The group, which has 370 partners in 20 countries, has completed more transactions than any other hotel and hospitality real estate advisor in the past five years, totaling $83 billion globally.

The report highlights the resilience and growth potential of the hotel industry as it adapts to evolving travel patterns and consumer preferences.

A key JLL assessment:

Lifestyle hotels are emerging as the new “third category,” leading to expansion into branded residences and alternative accommodations as hotels tap into the growing Experience Economy
According to the report’s findings:

In 2024, through November, 4.8 billion hotel room nights were booked, 102 million more than in 2023, resulting in a 4% increase in RevPAR (revenue per available room). While RevPAR increased across all regions of the world, performance remains uneven, with Asia-Pacific (APAC) still lagging 10% below 2019 levels, while the Americas, Europe, and the Middle East have fully recovered.
Global hotel investment volume reached $57.3 billion in 2024, up 7% from 2023, but still 17% below historical levels. Global growth was driven by growth in APAC and EMEA, while transaction volume in the Americas declined slightly for the second consecutive year.
Funds remained the most active global hotel buyers. This trend is expected to continue in 2025 and beyond, with cross-border investment likely to increase. Middle Eastern high-net-worth investors and US funds are likely to be the biggest winners, targeting quality assets in Europe and Asia, respectively.
Luxury hotels will continue to be the focus of investment interest. Overall, we see a surge in investment in urban hotels.
The study expects increased mergers and acquisitions of branded hotels and private equity investments in third-party management companies in 2025. Finally, the proliferation of artificial intelligence in the hospitality industry is expected. The strategic application of artificial intelligence will be crucial to optimizing hotel operations, improving the guest experience, and addressing ongoing labor challenges.

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