Hotel Management & Transactions 2026

The Global Hospitality Sector 2026: Resilient Demand, Selective Capital and Evolving Deal Structures

In 2026, global hospitality performance remains supported by resilient travel demand, but underwriting and execution are increasingly shaped by the cost of capital, uneven operating results across regions and segments, and tighter regulatory and disclosure expectations. JLL reports that global hotel demand reached 4.8 billion room nights and global RevPAR grew by 4%, with performance uneven by region (JLL Global Hotel Investment Outlook 2025). Within Europe, CBRE expects a more measured outlook in 2026, forecasting Europe-wide RevPAR growth of approximately 1% to 3% supported by disciplined supply and inbound travel growth (CBRE European Real Estate Market Outlook 2026).

Performance and capital markets

Performance reflects both resilience and dispersion. JLL notes that while RevPAR grew in all regions, performance remained uneven, with APAC still lagging 2019 levels while the Americas, Europe and the Middle East had fully recovered (JLL Global Hotel Investment Outlook 2025). On the capital side, JLL reports global hotel investment volume of USD57.4 billion (up 7% year-on-year) and that single-asset deals represented 79% of global liquidity (JLL Global Hotel Investment Outlook 2025). JLL also highlights that improving debt market clarity should spur transactions and recapitalisations (JLL Global Hotel Investment Outlook 2025). In 2026, a meaningful share of hotel activity continues to be structured as share deals, and refinancings and amend-and-extend work remain prominent as owners manage maturities, covenants and capex.

Operating, technology and guest demand

Guest expectations continue to push brands and owners toward more experience-led products and stronger technology enablement. JLL describes hotels as being at the centre of an expanding experience economy and highlights continued blurring of living, working and playing, with non-traditional lodging and branded residences attracting investor interest (JLL Global Hotel Investment Outlook 2025). CBRE expects blended travel and extended stays to deepen, benefitting lifestyle-oriented hotels (CBRE European Real Estate Market Outlook 2026). Both sources also point to accelerating AI adoption across the sector, which can streamline operations and reshape travel planning, while increasing focus on data protection, cybersecurity and vendor allocation (JLL Global Hotel Investment Outlook 2025; CBRE European Real Estate Market Outlook 2026).

Transaction structures and legal focus

Hotel transactions continue to involve cross-border structuring, regulatory approvals and complex operating agreements. Beyond asset deals, a significant share of activity is executed through share deals (including acquisitions of property-owning SPVs and operating platforms), and 2026 also features continued refinancing and amend-and-extend work as sponsors manage maturities, hedging and covenant packages. Key legal themes include aligning acquisition and financing workstreams, diligence on management/franchise/brand and technology contracts, and allocating data protection, cybersecurity and ESG-related disclosure responsibilities.

2026 outlook

CBRE expects long-term interest rates to remain elevated in Europe, limiting yield compression and reinforcing income-driven returns, while financing conditions gradually improve (CBRE European Real Estate Market Outlook 2026). In lending markets, CBRE also notes growing competition among lenders and a shift toward a more balanced mix of refinancing and acquisition loans (CBRE European Real Estate Market Outlook 2026). In this environment, JLL emphasises that clearer debt market direction is crucial for underwriting and should support transaction activity and recapitalisations (JLL Global Hotel Investment Outlook 2025).

ESG and regulatory compliance

Sustainability and regulatory compliance continue to influence underwriting and documentation. CBRE highlights how European regulatory developments and transition plan expectations are shaping decision-making and frames transition plans as a tool for managing risk and identifying value creation opportunities (CBRE European Real Estate Market Outlook 2026). CBRE also emphasises sustainability as a critical factor for risk mitigation and value creation (CBRE European Real Estate Market Outlook 2026), increasing the need for disclosure-ready data, clear targets and careful risk allocation in refurbishments and retrofits.

Transactional risk and legal considerations

Transactional complexity remains elevated, particularly where acquisitions run alongside refinancings and renovation. Key pressure points include regulatory review, zoning/licensing, and the interaction between real estate ownership and management/franchise arrangements. Where stress emerges, sponsors may pursue amend-and-extend, recapitalisations or opportunistic sales, requiring careful co-ordination across stakeholders.

Conclusion

In 2026, hospitality combines resilient demand with selective capital deployment and more complex execution. JLL highlights continued investor optimism and catalysts such as loan maturities and recapitalisations (JLL Global Hotel Investment Outlook 2025), while CBRE expects a measured European performance outlook supported by disciplined supply (CBRE European Real Estate Market Outlook 2026). Share deals and refinancings remain prominent, reinforcing the importance of early alignment across legal, operational and financing workstreams.