Corporate Travel and Tourism Rebound Boosts Global Hospitality Market Growth

2026-01-26T12:15:44Z

Key opportunities in the hospitality real estate market include growth driven by recovering international tourism, corporate travel, and the rise of experiential stays. Urban properties lead due to business demand, with cross-border investments focusing on Europe and the Middle East, and institutional investors leveraging AI to boost revenue.

Dublin, Jan. 26, 2026 (GLOBE NEWSWIRE) -- The "Hospitality Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.


The Hospitality Real Estate Market is projected to increase from USD 5.12 trillion in 2026 to USD 6.27 trillion by 2031, at a CAGR of 4.18%. Key growth drivers include international arrivals recovery, corporate event rejuvenation, and capital inflows into hotel assets. Investment is focalized in Europe and the Middle East, with urban properties leading RevPAR growth as business travel revives, and resorts benefiting from wellness tourism's rise. Institutional investors are optimizing portfolios using AI-driven revenue systems for up to 10% lift in room revenue. However, margins are pressured by inflation and construction costs, tempering the growth trajectory.

Global Hospitality Real Estate Market Trends and Insights Significant Rebound in Global Tourism and Corporate Travel Activity

Global tourism surpassed pre-pandemic levels in 2024 with 1.4 billion international arrivals and USD 1.6 trillion in receipts, boosting demand across all lodging segments. Corporate travel spending is recovering with postponed conferences and increased mixed-use travel. The sustained rebound is the principal driver for the hospitality real estate market.

Increase in Cross-Border Hotel Transactions Across Major Gateway Cities

Cross-border transactions rose swiftly in 2024 with 74% of inbound capital heading to the EMEA region. Asia-Pacific approached 90% of 2019 investment levels, with Japan drawing significant inflows. Full-service hotels dominated transactions at 87%, offering multiple revenue sources. Lower anticipated interest rates in 2025 are expected to accelerate market activity.

Escalating Operational Costs Impacting Hotel Profitability

Labor, utilities, and food costs outpace room revenue growth, compressing margins, particularly in midscale properties. Operators turn to automation and energy management to preserve profitability. Rising expenses foster consolidation, prompting smaller owners to divest.

Other drivers and restraints analyzed in the detailed report include:

  • Strong Performance Metrics Like RevPAR and ADR in Urban and Leisure Markets
  • Rising Investments from REITs, Private Equity, and Institutional Investors
  • Growing Competition from Alternative Lodging Platforms and Short-Term Rentals

Segment Analysis

Hotels command 68.05% of the market share, supported by global brands and adaptable demand. Resorts are expected to grow at a 4.88% CAGR, driven by wellness tourism. Serviced apartments and boutiques offer superior margins and cater to distinct traveler needs, emphasizing sustainability and local sourcing.

Geography Analysis

Asia-Pacific, holding 38.35% of 2025 revenue, drives growth, with Japan capturing nearly half of regional flows. China's tourism and infrastructure improvements, along with India's rising incomes, bolster performance. The Middle East & Africa anticipate a 6.06% CAGR, driven by significant public capital and event-led demand. North America and Europe provide stability, with London leading hotel investment in 2024.

List of Companies Covered in this Report:

  • Marriott International Inc.
  • Hilton Worldwide Holdings Inc.
  • InterContinental Hotels Group PLC
  • Accor S.A.
  • Wyndham Hotels & Resorts Inc.
  • Choice Hotels International Inc.
  • Jin Jiang International Holdings
  • Hyatt Hotels Corporation
  • Radisson Hotel Group
  • Best Western International Inc.
  • Sonesta International Hotels
  • G6 Hospitality LLC
  • Aimbridge Hospitality
  • Host Hotels & Resorts, L.P.
  • Apple Hospitality REIT Inc.
  • Melia Hotels International
  • Extended Stay America
  • OTO Development
  • Whitbread PLC
  • NH Hotel Group (Minor Intl.)

For more information about this report visit https://www.researchandmarkets.com/r/d1qnik

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