Despite the difficult current macroeconomic context there is confidence in the world of hotel transactions. Even the incipient trade war triggered by the protectionist measures of the new US president Donald Trump, does not seem to be dampening global investors’ desire for hotels. This is according to JLL's Global Hotel Investment Outlook, which predicts that global investment in the sector will grow by between 15% and 25% by 2025.
All this after 2024, in which the total value of transactions worldwide reached $57.4 billion, an increase of 7% over the previous year. A value that remained below historical parameters, mainly due to a limited volume of portfolio transactions and a significant reduction in the average size of transactions.
According to the JLL report, this year's growth will be supported by a series of factors, including the restructuring of maturing debt, which could lead to the disposal of some properties. Then there is the need to implement investment plans to upgrade or maintain properties in an increasingly competitive market environment, together with the imminent exit horizon for many transactions completed by private equity in the recent past.
The luxury and service sectors are confirmed as the most attractive for investors, with particular interest in urban markets and those with high entry barriers. An increase in foreign investment is also expected, with interested parties from the Middle East and private American investors ready to seize opportunities in Europe and in some US cities.
Italy also stands out; a country in which €1.7 billion were invested in 2024, a figure that rises to about 2 billion considering operations for properties to be converted (mainly including office premises), thus confirming the high level of investor interest in this asset class. With the conversion and repositioning into luxury hotels, especially in markets such as Rome, having been some of the main transactions since 2019.
Massimiliano Sarti
Journalist
