Top trends driving US hotel investment in 2024

Hotel performance and investor interest this year will be influenced by factors such as supply growth, travel demand and changes in the lending landscape, according to JLL

In the first half of 2024, U.S. hotel transaction volume totaled $9.2 billion, marking a decline of approximately 23% compared to the previous year, according to JLL's H1 2024 U.S. Hotel Investment Trends report, as reported by Hotel Dive. Despite this, hotel RevPAR remained strong, with urban markets particularly showing potential for growth.

Key takeaways

• According to JLL, U.S. hotel supply growth continues to be sluggish due to high construction costs and ongoing supply chain disruptions;
• The report indicates that investors are likely to remain interested in urban and other high-barrier-to-entry markets, which are benefiting from strong RevPAR driven by the resurgence of group, corporate, and international travel;
• Additionally, an increase in the issuance of commercial mortgage-backed security loans is expected to boost hotel transactions in the second half of the year, as some lenders continue to prefer hotel loans due to their attractive credit spreads compared to other asset classes.

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