Global Hotel Investment Stalls as High Debt Costs Deter Large Deals

The hotel investment market is stuck in neutral. Transaction volume hit $24.5 billion in the first half, down 17.5% from last year and 31% below 2019 levels. The culprits? Expensive debt and wobbly demand trends.

Total transactions fell about 16% year-over-year to 600 deals, according to JLL's latest "Global Hotel Investment Trends" report, which the brokerage will publish this week.

All types of hotel projects saw weakness, highlighting how far capital has retreated.

Investors Retreat from Larger Deals

Hotel investors practiced radical selectivity. This translated into a near record share of single-asset purchases, rather than the more typical acquisitions of whole port