Market Trends

🏨 In 2024, France's hospitality sector comprised 18% of total real estate investments, with over 100 transactions, mainly single-asset. Paris and Île-de-France dominated two-thirds of the market. Key acquisitions included Saint-James & Albany and Pullman Paris Tour Eiffel. France ranked third in Europe, with hotel transaction volumes reaching €17 billion, a 62% increase. Average price per key was €215,300. U.S. and Asian investors returned, boosting portfolio transactions by 40%, driven by private equity funds.

🛑 U.S. travelers' reliance on familiar hotel brands tripled to 14% in 2026 from 5% last year, per SiteMinder's report. Direct bookings rose to 40%, surpassing the global 28% average. In 2026, 52% plan domestic travel, up from 49%. U.S. named a "dream destination" by 10% globally, topped by Japan at 17%. AI usage in booking rose to 4%, with 71% of U.S. travelers desiring AI features like price alerts. Event-driven travel appeals to 63%, with a focus on quality experiences.

📍 Fourteen percent of U.S. travelers prioritize familiar hotel brands, tripling last year's 5%. In 2026, 52% plan domestic travel, a slight increase from 49%. Direct bookings rose to 40% from 36%, outpacing the global average of 28%. AI use in trip planning reached 4%, with 7% among U.S. Gen Zs and Millennials. The desire for travel is growing, with 49% globally planning more trips. Quality is key, as 58% prefer premium rooms.

🗺 Online travel agencies (OTAs) have surged in popularity as a starting point for accommodation searches, rising from 18% to 26% globally, while search engine use declined to 21%. The SiteMinder 2026 report, surveying 12,000 travelers from 14 countries, notes that 80% want AI features for travel planning, with 65% open to demand-based pricing. Travel for events is expected to grow, with Gen Z and Millennials leading the trend. Japan, the US, and France are top destinations.

🏨 London ranks as the top European city for hotel investment in 2025, according to Deloitte's survey, with Edinburgh leading the UK regions for the fifth year. Confidence in the hotel market remains high, despite concerns over profitability, labor issues, and geopolitical risks. Three-quarters of respondents anticipate increased competition for acquisitions in 2026, driving diversification strategies. Luxury hotels attract the most interest, while mid-market segments face challenges. Athens rises to third place for investment, following Madrid.

📅 October 2025, Arlington, Virginia—U.S. hotel occupancy decreased for the eighth month year-on-year to 65.8%, a 2.4% drop. ADR increased 1.5% to $167.71, while RevPAR fell 0.9% to $110.35. New York City had the highest occupancy at 89.4% (-1.6%). Tampa, Florida (62.5%), and St. Louis, Missouri (63.1%) reported the lowest occupancies, with Tampa affected by post-Hurricane Milton demand. Top 25 markets outperformed others in occupancy and ADR.