Investor types

Hospitality investors and hotel operators

Hospitality investors own hotel real estate, while hotel operators brand, franchise or manage the hotels that others own. The two groups meet in every hotel transaction, and the split between ownership and operation shapes how capital flows into the sector.

What hospitality investors and hotel operators are

The hotel market has two distinct sides. The first is ownership: real estate investment trusts, private equity firms, families and sovereign funds that hold hotel buildings as investments. The second is operation: companies that attach a brand to a hotel, franchise it or manage it under contract for the owner.

The largest brand companies have largely moved away from owning property. Marriott International describes an asset-light model in which it typically franchises, manages or licenses hotels rather than owning them. At the end of 2025 Marriott had 7,644 franchised or licensed properties against 2,017 company-operated properties, according to its Annual Report 2025.¹

Hotel owners differ from general real estate investors because a hotel is a trading business as well as a building. Income depends on room rates that change daily, on food and beverage sales and on a large workforce, rather than on leases with fixed rents. Results are also seasonal. Families that develop and hold property, including hotels, are covered separately under property developer families.

Scale of hotel investment

Global hotel investment volume reached US$57.4bn in 2024, an increase of 7% on 2023 and the third-lowest annual total since 2012, according to JLL's Global Hotel Investment Outlook 2025. JLL put 2024 volume 17% below historical levels. By region, volume rose 36% in Europe, the Middle East and Africa and 15% in Asia Pacific in 2024.²

In 2025 direct hotel investment rose 22% from the 2023 trough. Transaction volumes rose 27% in the Americas and 4% in Europe, the Middle East and Africa; they fell 20% in Asia Pacific (JLL, 10 February 2026).³ Hotels accounted for approximately 8% of global commercial real estate investment volume in 2025.^3,4

In Asia, JLL forecasts that Japan will account for 35% to 40% of Asia Pacific hotel transaction volume in 2026.³ In the Gulf, JLL reported that Saudi Arabia had 161,000 hotel rooms, 60% more than in 2019, with a further 102,000 expected to open over the following decade; on that basis JLL expects it to overtake the United Arab Emirates as the largest hotel market in the Middle East.²

Structures and sub-types

Six types of participant recur in hotel transactions:

Owner-operators, which both own and run their hotels.
Asset-light brand companies, which franchise, manage or license hotels.
Third-party managers, which manage hotels for their owners.
Hotel real estate investment trusts.
Private equity firms, which typically buy, reposition and resell hotels.
Family and sovereign owners, which often hold trophy hotels for long periods.

The relationship between owner and brand takes one of two main contractual forms. Under a hotel management agreement the brand company operates the hotel and employs or directs its staff on the owner's behalf, in return for base and incentive fees. Under a franchise agreement the owner operates the hotel itself, or appoints a third-party manager, and pays royalties to use the brand. Many owners also separate the property company that holds the building from the operating company that runs the business, so that property ownership is kept apart from operating liabilities.

The size of the brand companies shows how far operation and ownership have separated. Marriott had 9,805 properties with 1,779,936 rooms at year-end 2025, according to its Annual Report 2025.¹ IHG Hotels & Resorts had 6,963 open hotels with 1,026,177 rooms at 31 December 2025.⁶

Source of capital and investment horizon

Hotel acquisitions are funded with equity combined with hotel debt. JLL cites strong debt markets and record dry powder as conditions supporting faster investment in 2026 (JLL, 10 February 2026).³

Private equity remained the largest acquirer of hotels worldwide in 2024, supported by significant dry powder. Private individuals and real estate investment trusts increased their buying in 2024, which JLL attributes to lower leverage and lower costs of capital respectively. First-time hotel investors accounted for 16% of global volume in 2024, and JLL expected family offices and private individuals to invest heavily in the sector in 2025 and beyond.²

Horizons follow the owner. Private equity funds have finite lives, and JLL identified a high volume of private equity funds reaching the exit stage of their lifespan as a driver of sales in 2025.² Listed owners, families and sovereign owners can hold hotels indefinitely.

How hotel capital is deployed

Single-asset deals drove a record 79% of global hotel investment volume in 2024, according to JLL. Portfolio volume fell to US$12.2bn, 50% below historical averages.²

The pipelines of the brand companies show where new rooms are coming from. Marriott's pipeline ended 2025 at about 610,000 rooms, a 5.7% increase on the previous year.⁷ IHG's global pipeline stood at 339,526 rooms at 31 December 2025, up 4% on the previous year.⁶ Hyatt ended 2025 with a record pipeline of 148,000 rooms.⁷

Typical deal sizes

The average hotel deal size fell to US$45.0m in 2024, 22% below historical averages, according to JLL.² Select-service and luxury hotels were the most favoured assets: buyers chose select-service hotels for smaller cheque sizes and luxury hotels because they are irreplaceable and have in-place cash flow.²

How decisions are made

A hotel acquisition is underwritten as an operating business. Buyers analyse occupancy, average daily rate, revenue per available room and food and beverage margins. They also compare the hotel's performance with its local competitors.

Three further reviews are specific to hotels:

Capital expenditure. A brand usually requires a property improvement plan, a schedule of renovations to bring the hotel up to current brand standards, when ownership changes. JLL cited deferred capital expenditure, with property improvement plans being reinstituted, as a driver of hotel sales in 2025.²
Management and franchise contracts. Buyers check whether the agreement can be terminated on sale, how incentive fees are calculated and whether the owner has a priority return, an agreed yield the owner receives before the operator earns incentive fees.
Labour. Collective agreements and staffing levels affect both cost and flexibility.

What investors look for and why deals fail

JLL expected investors in 2025 to target top urban gateway markets, where the cost to build a hotel remains significantly higher than the cost to buy one, naming London, Madrid, New York, San Francisco, Singapore and Tokyo.² For 2026 JLL names luxury resorts and trophy assets as emerging top investment targets.⁴

The most common obstacle is price. JLL reported in March 2026 that gaps between the prices buyers bid and the prices sellers ask are becoming increasingly common.⁵ Other reasons buyers withdraw are specific to hotels: a management agreement that cannot be terminated, a large backlog of deferred capital expenditure, restrictive labour agreements or a hotel that is losing share to its competitors.

Regulation and governance

Hotels operate under licences and rules that do not apply to most other property. Owners and operators need the relevant local lodging and alcohol licences and must meet fire, safety and food hygiene standards and employment law. Listed or historic buildings carry planning restrictions on alteration. Franchise and management agreements add a contractual layer: the owner must maintain the hotel to the brand's standards, which is the origin of the property improvement plan.

Trends in 2025 and 2026

In January 2025 JLL forecast that global hotel investment volume would exceed the 2024 total by 15% to 25% in 2025. It expected impending loan maturities, deferred capital expenditure and private equity funds reaching the exit stage to drive transactions.² Cross-border investment in 2024 reached its highest total since 2021, and JLL expected cash-rich Middle Eastern investors and select US private equity investors to be the most acquisitive in 2025, targeting quality assets in Europe and Asia respectively.²

The 2025 recovery was uneven. The Americas led with a 27% rise in transaction volume. Europe, the Middle East and Africa grew more slowly at 4%, while Asia Pacific fell 20%.³ JLL forecasts a continued robust increase in global hotel investment volume in 2026, and projects global air passenger volume to grow 4.9% in 2026, with Asia Pacific growing 7.3% (JLL, 10 February 2026).³

New supply is limited. JLL expected global hotel supply to grow only 2% in 2025, 220 basis points less than its long-term average, and expected brands to use their balance sheets to grow, citing Hilton's acquisition of Graduate Hotels and Hyatt's acquisition of Standard International in 2024.² Brand pipelines continued to grow through 2025 at Marriott, IHG and Hyatt.^6,7

Notable hotel owners and brand companies

Name	Headquarters	Size, with date
Marriott International	Bethesda	9,805 properties and 1,779,936 rooms, year-end 2025¹; pipeline of about 610,000 rooms, end 2025⁷
IHG Hotels & Resorts	United Kingdom	6,963 hotels and 1,026,177 rooms; pipeline of 339,526 rooms, 31 December 2025⁶
Host Hotels & Resorts	Bethesda	Total assets of US$13.0bn; 71 properties in the United States and five abroad, 2025 results published 18 February 2026⁸
Pandox	Stockholm	192 hotel properties with about 42,500 rooms in 11 countries; market value about SEK 90bn, year-end report of 5 February 2026¹⁰
Katara Hospitality	Lusail City, Qatar	Owns and manages over 7,188 keys in 12 countries, company website, October 2026⁹

Marriott and IHG are brand and operating companies. Host Hotels & Resorts is a listed hotel owner: it reported GAAP net income of US$776m and Adjusted EBITDAre of US$1,757m for 2025.⁸ Pandox is a listed owner of hotel properties in Northern Europe, and Katara Hospitality is a Qatar-based owner and manager with hotels in Europe, Asia, Africa and the Americas.^10,9

How advisers work with hotel investors

Hotel sales are commonly run by sell-side brokers through auctions. The market is concentrated: JLL advised on US$10.6bn of hotel transactions globally in 2025, a market share of nearly 25%, and on US$5.8bn in Europe, the Middle East and Africa, a share of 35.3%, according to transaction data compiled by MSCI Real Assets (JLL, 9 March 2026).⁵

Beyond running sales of single hotels and portfolios, advisers negotiate the termination or transfer of management contracts, handle conversions from one brand to another and arrange acquisition finance from banks and debt funds. Anglo-Suisse Capital advises on capital raising, M&A and secondary transactions with professional investors.

Frequently asked questions

Do hotel brands own their hotels?

Mostly not. Marriott had 7,644 franchised or licensed properties against 2,017 company-operated properties at the end of 2025.¹

How large is global hotel investment?

Global hotel investment volume was US$57.4bn in 2024, up 7% on 2023, according to JLL.²

Which region led the 2025 recovery in hotel investment?

The Americas, where transaction volume rose 27% in 2025. Europe, the Middle East and Africa rose 4% and Asia Pacific fell 20%.³

What is the average size of a hotel deal?

JLL put the average hotel deal size at US$45.0m in 2024, 22% below historical averages.²

What share of property investment goes into hotels?

Approximately 8% of global commercial real estate investment volume in 2025, according to JLL.⁴

What is the difference between a management agreement and a franchise agreement?

Under a management agreement the brand company operates the hotel for the owner. Under a franchise agreement the owner, or a manager it appoints, operates the hotel and pays royalties to use the brand.

What is a property improvement plan?

A schedule of renovations that a brand requires, usually when a hotel changes hands, to bring the property up to current brand standards.

Who advises on most hotel sales?

JLL advised on US$10.6bn of hotel transactions in 2025, nearly 25% of the global market, according to MSCI Real Assets data.⁵

Working with Anglo-Suisse Capital

Anglo-Suisse Capital advises companies, fund managers and shareholders on capital raising, M&A and secondary transactions with professional investors in the UK, Switzerland and internationally.

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Sources

This page is general information for professional investors and is not investment advice. Figures are taken from the sources listed, as at the dates stated.