GLOBAL HOTEL DEALS REMAINED STUNTED IN THE FIRST HALF OF 2025. COULD THE SECOND HALF BE DIFFERENT?

By DAVID EISEN

lobal hotel transaction volume reached $ 24.5 billion in the first half of 2025, down 17.5 % compared to the same time period a year ago and more than 30 % down versus 2019. That’ s according to new data from JLL Research Hotels & Hospitality in its“ State of the Lodging Industry H1 2025.”

There were 600 total transactions in the half, 16.7 % less than in H1 2024. Of the deals that did come to fruition, 20 were more than $ 1 million per key, the second most ever recorded in a first half, showing that while there was a shortage of deals, valuations for luxury assets remain high. The singleasset average price per key was $ 241,000.

Global portfolio volume

fell 52 % to a near-historic low highlighting the challenges investors have underwriting high-dollar trades. As JLL noted, urban markets are driving liquidity while resorts fuel pricing.“ Look for investors to continue targeting top urban gateway markets, particularly as the discount-to-replacement cost remains pronounced,” JLL wrote. Foreign capital and private equity will likely be the most acquisitive, with selectservice and luxury most in favor.

Just more than half of all hotel transactions were in the U. S. and while total deals were down 6.7 % versus the same period in 2024, total transaction volume of $ 9.7 billion was up nearly 4 % compared to H1 2024. It,

however, remains well below historical averages as liquidity for larger transactions has been more subdued, JLL noted. Supply growth is expected to continue to be muted as construction costs remain elevated and investors focus on acquiring existing assets, often at a discount to replacement cost. More brand and management company M & A is expected, as hotel companies seek to drive unit growth.

Global hotel supply is expected to grow 230 basis points less than its long-term average over the next four years as construction costs remain high. This should benefit existing hotels as well as spur hotel brands to use their balance sheets to fuel net unit growth, JLL noted.

68 hotelsmag. com Sept / Oct 2025