Executive Summary
Global hotel investment grew significantly in 2024, largely due to a surge in cross-border deals. The U.S. will remain a buyer’s market through the end the decade, but there should be a net asset value increase. EMEA has benefited from an increase in international tourism. It is now a popular destination, especially for luxury hotels and resorts. Asia-Pacific is a growth engine that offers investment opportunities for value-added strategies. Risks include currency fluctuations, geopolitical issues affecting travel and inflationary forces around the globe. Rachael Rothman (CFA, ISHC), Head of Hotels Research & Data Analytics
This report was prepared before recent geopolitical challenges and trade issues, notably U.S. Tariffs and stock market volatility in April 2025. As the situation is constantly changing, it’s too early for us to know what impact it will have on the global hotel market in the next year.
Americas
EMEA accounted for 74% inbound investment volume in 2024. This was partially due to Asia-Pacific, and particularly Greater China investors, decreasing their activity. The full-service hotel sector remained a popular investment, accounting for 87% of cross-border investments last year. The upper-upscale properties will account for 49% investment volumes by 2024. This represents a 13-point increase since the COVID-19 epidemic. The hotel investment market in the Americas will likely grow this year due to a narrowing spread between bid and ask prices, as well as lower interest rates.
EMEA
The interest of U.S. investors drove 61% foreign capital inflows into EMEA. Italy, Portugal, Greece and the UK were all major destinations for cross-border investments. Stabilized interest rates, solid operational performance, and the projected mid-term demand/supply dynamic are expected to maintain investment momentum in 2025.
Asia-Pacific
The total hotel investment volume reached 90% of the 2019 levels in 2018, outpacing EMEA (75%), and the Americas (60%) due to strong purchases by investors within the region. US capital inflows are up by 23% annually since COVID-19 began. In 2024, Japan accounted for nearly half of all cross-border investments in the region. Investor sentiment should remain strong through 2025 as a result of the prospects for lower interest rates, increased occupancy, and limited availability. Japan should continue to be the focus of cross-border capital due to lower debt costs, a weaker Yen and Australia, Southeast Asia and Korea. It is likely that the market will shift to upscale products and higher midscale products, incorporating value-add strategy.
CBRE Group, Inc.
CBRE Group, Inc.NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE offers a wide range of integrated services to a variety of clients, including property management, investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services, and development services. Please visit our site at www.cbre.com.
