Executive Summary
2024 marked a significant rebound in global hotel investment, driven by strong growth in cross-border transactions. The U.S. remains a buyers’ market but should see net asset value growth through the end of the decade. EMEA is benefitting from more international tourism, making it an attractive destination, particularly for luxury and resort hotels. Asia-Pacific continues to be a powerhouse of growth, creating investment opportunities in value-add strategies. Potential risks include geopolitical factors affecting travel, currency fluctuations, and inflationary pressures across the globe. Rachael Rothman (CFA, ISHC), Head of Hotels Research & Data Analytics
This report was compiled before the emergence of recent geopolitical and trade challenges, most notably U.S. tariffs and stock market volatility, in early April 2025. With the situation evolving on a daily basis, it is too early to gauge the effect it may have on global hotel capital flows in the year ahead.
Americas
EMEA emerged as the dominant source of cross-border capital in the Americas in 2024, accounting for 74% of inbound investment volumes. However, this was partly due to Asia-Pacific investors, particularly those from Greater China, reducing their activity. Full-service hotels remained popular, comprising 87% of all cross-border investment last year. Upper upscale properties accounted for 49% of investment volumes in 2024, an increase of 13 percentage points since the onset of the COVID-19 pandemic. Hotel investment in the Americas is expected to strengthen this year on the back of narrowing bid-ask spread and lower interest rates.
EMEA
In EMEA, foreign capital inflows accounted for 61% of total hotel investment volumes, driven by interest from U.S.-based investors. The UK remained the top destination, while Italy, Portugal, and Greece, showed substantial growth in cross-border investment. Looking ahead to 2025, stabilized interest rates, solid operating performance, and the projected medium-term demand/supply dynamics are expected to sustain investment momentum.
Asia-Pacific
Total hotel investment volumes reached 90% of 2019 levels last year, outpacing EMEA (75%) and the Americas (60%), driven by strong purchasing by investors from within the region. The U.S. remained the leading source of cross-border capital, with annual inflows up 23% since the onset of COVID-19. Japan saw a significant rise in capital inflows in 2024, comprising nearly 50% of cross-border investment in the region. Investor sentiment is expected to remain strong in 2025, driven by prospects of lower interest rates, occupancy growth, and limited supply. Cross-border capital should remain focused on Japan, driven by lower debt costs and a weak Yen, as well as Australia, Southeast Asia, and Korea. A notable shift toward upscale and upper midscale products involving value-add strategies is expected.
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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 serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
