The global hotel market is entering a period of performance divergence across assets, markets and operators, introducing new investment opportunities as capital markets improve. That divergence is becoming more pronounced in 2026, driven by factors including post-pandemic recovery patterns, the return of business travel and a slowdown in international travel.
“The primary driver of this divergence is a clear ‘quality premium,’ best exemplified by the luxury and upper-upscale sectors,” said Daniel Peek, president, Americas, JLL’s Hotels & Hospitality Group, in an interview with IREI. Global wealth has grown at a 9.6 percent compound annual rate since 2015, he noted, fueling demand for high-end experiences at a time when the supply of new ultra-luxury hotels remains constrained.
“This fundamental gap is giving top-tier, experience-led assets a distinct advantage and widening the performance gap between them and the rest of the market,” Peek said.
