International Hotel Investment: Forecast to 2025

2025 promises to be a milestone year in the world of hotel business, opening up new horizons for investors and market players. According to the Global Hotel Investment Outlook report from JLL, the influence of global capital in this industry will increase by 15-25% compared to 2024. This confirms the resilience of the industry and its ability to adapt to new traveler demands and a changing economic backdrop.

2024 Results: Return to Growth

2024 has brought a strong recovery for the hotel sector despite macroeconomic challenges. Global hotel demand reached 4.8 billion visits, 102 million more than in 2023. RevPAR (revenue per available room) increased by 4%, reaching 17-26% above pre-COVID levels in some regions.

In the investment space, 2024 was marked by transactions worth $57.4 billion, up 7% from the previous year. However, deal volume remains below historical highs due to a decline in the number of portfolio transactions and a decrease in average deal sizes.

In Italy, the volume of investments reached 1.7 billion euros, and taking into account the reconversion of buildings into hotels, it is about 2 billion. Investors were particularly interested in properties in Rome, where luxury hotels have become the center of the largest transactions since 2019.

Key trends for 2025

Lifestyle hotels

The hotel market is actively developing towards the creation of conceptual spaces that combine work, rest and entertainment. Unlike traditional hotels, lifestyle hotels earn up to 40% of their revenue through additional services – restaurants, spas, shops and cultural events. This segment attracts large investors seeking innovative business models.

Growing influence of new players

Leading the way in investment will be countries with rapidly growing economies, such as India and Saudi Arabia. Saudi Arabia’s Vision 2030 program envisages the transformation of the country into a leading tourism hub. Mega-projects such as Diriyah Gate and NEOM aim to attract 150 million tourists – 7.8 times more than in 2019. These regions are becoming not only investment targets, but also important participants in the global hotel market.

Artificial Intelligence in the Hotel Industry

AI is playing an increasingly important role in the hospitality industry. Hotels are implementing intelligent management systems, personalized services, and process automation. Machine learning algorithms analyze guest behavior, predict their preferences, and optimize pricing, which improves customer experience and increases business profitability.

Forecast for 2025: Where will investments go?

Analysts expect US markets to be the main growth drivers, followed by Europe, the Middle East and Asia Pacific. The most attractive segments remain luxury and premium services, as well as large cities with high entry barriers. International investment is expected to increase, especially from Middle Eastern funds and US companies actively investing in Europe and leading US cities.

“The hotel industry is undergoing a major transformation, with technological innovation and flexibility in response to changing consumer preferences becoming key success factors. Investors are increasingly interested in the hotel sector, particularly in the redevelopment and rebranding segments,” said Claudia Bisignani, Head of Hospitality at JLL. “Despite challenges related to capital costs, we expect this momentum to continue into 2025, confirming the attractiveness of the hotel sector as a resilient and profitable investment class.”