PERSPECTIVE

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HOW SCARCITY AND STRUCTURAL DEMAND ARE CREATING A ONCE-IN-A-CYCLE OPPORTUNITY FOR LUXURY HOTELS.

By KEVIN DAVIS, AMERICAS CEO, JLL’ S HOTELS & HOSPITALITY GROUP

The luxury hotel transaction market had been building momentum for years. Then Q1 2026 hit, and it exploded— several trades crossed $ 1 million per key. RevPAR in the ultra-luxury segment reached $ 872 through April, hitting 148 % of pre-pandemic levels, while the broader U. S. market posted 120 % recovery, according to JLL’ s latest U. S. Luxury Hotel Investment Market Update. Add stabilizing interest rates and renewed private equity interest, and investors are suddenly rethinking their capital deployment timelines. The window for acquiring institutionalgrade luxury assets is opening. It won’ t stay that way for long.

What’ s driving the urgency isn’ t just strong performance; it’ s the irreplaceable nature of these assets. Prime real estate is rare

26 hotelsmag. com July / August 2026 2025