Despite ongoing challenges, the global hotel sector demonstrated remarkable resilience in 2024, with RevPAR growing 4% and demand reaching 4.8 billion room nights. Performance varied across regions, with APAC lagging behind 2019 levels while other regions fully recovered. Urban markets saw accelerated demand, driven by group, business, and international travel, with London, New York, and Tokyo expected to attract significant investor interest in 2025. As the industry enters 2025, it faces a unique inflection point. While leisure travel has been the primary driver of demand post-Covid, it’s expected to moderate as consumer savings contract. Group, corporate, and international travel are anticipated to accelerate, fueling 3-5% global RevPAR growth. Performance will remain uneven across regions, with APAC likely seeing the largest growth due to recovering Chinese travel. Urban markets are poised for a surge in performance, with London, New York, and Tokyo likely to attract significant investor interest. JLL projects 15-25% growth in global hotel investment volume catalyzed by impending loan maturities, deferred capex, and private equity fund-life expirations.
