Hospitality Real Estate Investment Market Size - By Property, By Investment Structure, By Application, By Deployment, Growth Forecast, 2025 - 2034

Hospitality Real Estate Investment Market Size

The global hospitality real estate investment market size was estimated at USD 61.3 billion in 2024. The market is expected to grow from USD 67.2 billion in 2025 to USD 178.4 billion in 2034, at a CAGR of 11.4%.

• Global tourism's upward trajectory is significantly bolstering the hospitality real estate investment industry, leading to heightened demand across diverse accommodation sectors. As both international and domestic travelers flock to destinations, occupancy rates and revenue streams surge, boosting asset valuations and drawing in strategic investments.
   
• Urbanization and infrastructure development are driving forces behind the surge in hospitality real estate investments, making destinations more accessible and bolstering both tourism and business travel. For instance, in January 2024, the Mumbai Trans Harbor Link, inaugurated. This new connectivity has not only linked the city to burgeoning hospitality areas but has also piqued investor interest in adjacent hotel and mixed-use projects.
   
• The hospitality real estate investment market was valued at USD 47.4 billion in 2021 and is projected to reach over USD 111.2 billion by 2030. This growth is driven by rising global tourism, urban infrastructure expansion, and increased investor interest in alternative lodging formats such as vacation rentals and mixed-use developments across key travel destinations.
   
• The hospitality real estate investment landscape underwent a transformation due to the COVID-19 pandemic, with a pronounced shift towards contactless technologies and flexible accommodation models. Investors responded by focusing on properties that offered digital check-ins, stringent hygiene protocols, and versatile space usage. In 2024, numerous developments have embraced tech-driven operations and hybrid designs, aligning with the changing expectations of travelers and bolstering resilience strategies.
   
• Technology-driven improvements grow to be the key feature of hospitality real estate, and key hotel chains and platforms assure smart room potentialities, contactless check-in, and individualized guest services. Established firms such as Marriott and Hilton are implementing AI-based concierge services to streamline their operations and deliver customer satisfaction to consolidate their competitive advantage.
   
• Mixed-use and hybrid hospitality developments are gaining traction as a strategic trend. For instance, in February 2024, Accor unveiled its "Hospitality Extended Living" model, combining long-stay ideas, branded residences, and co-living. This flexible-use format is being implemented in strategic urban and resort locations to accommodate a range of guest needs, demonstrating how hospitality real estate is progressing beyond short-term stays.
   
• The North American market continues to dominate the hospitality real estate investment sector with the presence of a well-developed tourism sector, healthy institutional capital and deep pipeline in luxury and mixed-use projects. For instance, in January 2025, when Blackstone acquired the 292 room Kimpton Hotel Event in Manhattan for USD 175 million, reinforcing the region's leadership in premium urban hospitality assets.
   
• Asia-Pacific is the fastest-growing region in the hospitality real estate investment market, fueled by rapid urban development, expanding middle-class tourism, and supportive government infrastructure initiatives. Countries like India, Vietnam, and the Philippines are witnessing increased investments in hotel and mixed-use developments, supported by smart city programs and rising inbound travel.
   

Hospitality Real Estate Investment Market Trends

• In early 2024, Marriott International introduced its dynamic pricing platform, which uses AI to increase revenue earned. This step brings the industry towards the strategy of data-driven revenue management and customized customer experience. The growing use of artificial intelligence and analysis of optimizing price and occupancy is transforming the investment plans of hospitality real estate.
   
• Investors and developers are oriented toward tech-enabled smart properties that relate to IoT, contactless services and energy efficiency. These innovations will become standard by 2027 and will lead to an increase in the level of work and the satisfaction of guests, increasing the value of assets.
   
• Wellness and sustainability have turned out to be an inseparable part of property development and more people are demanding eco-friendly hotels and wellness retreats. Product certifications and product-level green certification markers, such as LEED and WELL, are already impacting the choice of investors and appealing to socially responsible travelers, which is also likely to increase until 2030.
   
• For instance, in May 2025, Accor launched a large development of co-living in Southeast Asia, where residential and hospitality services are combined to accommodate compliance-based workers and millennials, who need flexible residence.
   
• The new markets are being opened because of enhanced connectivity and development of infrastructure. Significant transport projects in India and Vietnam were completed in 2024, so investor attention was focused on new destinations with extraordinary access, promoting development of hospitality real estate.
   
• Alliances between technology providers and real estate companies are growing with partnerships to be used in supplying integrated or guest-centric solutions. For instance, in March 2025, Hilton partnered with one of the top AI companies to apply predictive maintenance and personalized guest services and improved its operation excellence.
   
• A health and safety focus since the pandemic is affecting design and investment and the property sector is implementing high-level sanitation technology and flexibility of spaces to adjust to changing customer requirements.
   
• These joined trends will bring a considerable change in hospitality real estate by 2030, which should be built on resilience, innovation, and sustainable growth in all global markets.
   

Hospitality Real Estate Investment Market Analysis

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Based on property, the hospitality real estate investment market is segmented into traditional hotels, extended stay and serviced apartments, vacation rentals and short-term rentals, and alternative accommodation types. The traditional hotels segment dominated the market with 53% share in 2024 and is expected to grow at a CAGR of around 12% from 2025 to 2034.
 

• Traditional hotels dominated the industry, due in part to the increasing importance of retail and e-commerce in hotel settings. Hotels are evolving into places where people go to travel and shop, and this change is drawing in fresh investment surges.
   
• E-commerce is now present in hotel lobbies in addition to screens. Conventional hotels are evolving into lifestyle hubs, complete with branded retail areas and carefully planned pop-up shops. To provide distinctive in-person retail experiences that guests genuinely look forward to increasing both engagement and income per stay, many are partnering with fashion and wellness brands.
   
• Extended stay and serviced apartments have become an established industry that is expanding rapidly with a CAGR over 11% as more business travelers and work-from-homes require a flexible, longer-term place to stay. To make it convenient and cost-effective, there is incorporation of hotel-like services and residential comfort that is increasing investor interest in such properties and driving new development around the world.
   
• The vacation rentals and the short-term rentals are gaining momentum and are on a booming trend due to the increased popularity of flexible and customized stays by travelers. The extension of the legacy formats of core property types to meet the needs of a wider segment of people, including business and long-stay travelers, leisure trip and short-term renters, makes their demand consistent compared to niche formats and alternative accommodations when it comes to occupancy and investment.

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Based on investment structure, the hospitality real estate investment market is segmented into content moderation and safety, real estate investment trusts (REITs), private equity and investment funds, direct property ownership, and alternative investment platforms. The real estate investment trusts (REITs) segment dominates the market with 45% share in 2024, and the segment is expected to grow at a CAGR around 12% from 2025 to 2034.
 

• Real estate investment trusts (REITs) emerged as the dominant force in hospitality real estate investment. Without the hassle of direct ownership, their structure gives investors access to broad hotel portfolios, stability, and liquidity. The recovery of international tourism has made REITs a popular choice for institutional and individual investors looking for steady profits in the industry.
   
• One of the greatest advantages of REITs is their scalability. In contrast to individual ownership models, REITs have the flexibility to rapidly change their asset mix by purchasing, disposing of, or improving properties in response to changing demand patterns. They can respond to market changes more quickly due to their agility, whether it is taking advantage of popular tourist destinations or adjusting to shifting consumer preferences.
   
• Investment and private equity funds are key players in hospitality real estate, driving large-scale acquisitions and portfolio growth with over 11% CAGR. Firms like Blackstone and Brookfield target high-growth urban and resort assets, especially in post-pandemic and emerging markets, fueling market consolidation and long-term transformation.
   
• Direct property ownership remains a vital segment of the hospitality real estate investment market with 18% market share, with individual and institutional owners investing in income-generating assets for long-term returns. This model enables greater control over operations and asset strategy, with growing interest in boutique hotels, serviced apartments, and short-term rentals in high-demand locations.
   
• For instance, in April 2024, Host Hotels & Resorts purchased a posh resort in Scottsdale, Arizona. With its high RevPAR and robust cash flow from recent renovations, the property was a good fit for Host's strategy of concentrating on high-growth, high-barrier markets.
   

Based on application, the hospitality real estate investment market is segmented into business and corporate travel, leisure and tourism, healthcare and medical tourism, and education and training. The leisure and tourism segment is expected to dominate due to the increasing demand for intelligent, sensor-driven, and compliant safety technologies.
 

• Leisure and tourism are predicted to drive the majority of hospitality real estate investment, due to rising demand for travel worldwide and changing visitor expectations. Hospitality providers are reconsidering how properties cater to the contemporary leisure visitor as travelers prioritize immersive, tech-enabled, and wellness-focused experiences. Increased investment in resorts, boutique hotels, and destination-driven lodging is being fueled by this change.
   
• For instance, in February 2024, Hilton debuted its newest LXR Hotels & Resorts property in Bali, which was created especially to serve high-end leisure tourists. The resort emphasizes a strong emphasis on tech-enabled guest services, local cultural features, and customized wellness experiences. Hilton emphasized the opening as a component of its plan to bolster its portfolio of upscale leisure properties in popular resort areas.
   
• Business and corporate travel will drive growth in the hospitality real estate investment market, with a projected CAGR exceeding 11%. Demand will focus on urban hotels, serviced apartments, and flexible-stay hotels. Hospitality brands will collaborate with businesses to offer loyalty-based corporate packages and tech-optimized facilities, addressing the needs of global workforces in major business capitals.
   
• The healthcare, medical tourism and education related travel sectors take up about 27% of the hospitality real estate investment market. Growing demand for wellness resorts, recovery facilities, student apartments, and academic lodgings near medical and educational centers is driving the rise. However, the segment remains fragmented. Many regional operators lack standardized service delivery and brand integration, hindering their scalability and operational efficiency compared to mainstream hospitality assets.

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The US dominated the hospitality real estate investment market in North America with around 86% share and generated USD 23.7 billion in revenue in 2024.
 

• The US dominated the hospitality real estate investment market, due to solid economic fundamentals, an established hotel infrastructure, and ongoing demand from both domestic and foreign tourists.
   
• Institutional and international capital are still drawn to the US’s hospitality assets because of its well-established investment framework and high level of transparency.
   
• The US market's advantage is also being strengthened by the adoption of technology. American hotels are quick to embrace innovations that improve operational efficiency and guest satisfaction, from smart energy management systems to mobile-first guest experiences. Both long-term investors seeking future-proof assets and visitors find properties more appealing when they adopt this tech-forward strategy.
   
• Canada is emerging as a key player in hospitality real estate investment market due to the inbound tourism that is high, the urban redevelopment that is increasing and the government supported infrastructure initiatives. Bilingual requirement and regional variation make a case of investment in both luxurious and medium scale property. Projects such as the tourism recovery program launched by Destination Canada and its incentives to develop new hotels in new markets have a long-term potential, particularly, in second tier or underserved markets.
   
• For instance, in March 2024, Hyatt Hotels Corporation opened the Grand Hyatt Scottsdale Resort & Spa, following a significant repositioning of the existing property. In line with changing traveler expectations, the project added digital guest services, improved event venues, and improved wellness amenities. Hyatt stated this development reflects its strategy to invest in high-demand US destinations that combine luxury, experience, and operational excellence.
   

The hospitality real estate investment market in the UK region is expected to experience significant and promising growth from 2025 to 2034.
 

• Europe has the second largest with a CAGR around 11% of the international hospitality real estate investment market in 2024, occasioned by considerable tourist inflows, established real estate facilities, and the desire to invest in real estate to buy assets with secure revenue. Major cities throughout Western Europe enjoy steady demand for business and leisure travel and EU-sponsored regional development initiatives are aiding in the development of less-developed hospitality corridors.
   
• The UK has dominated the European hospitality real estate investment market due to its strength in local and international tourism, wealthy serviced apartment owners and institutional investment in major cities such as London and Edinburgh as the gateway cities. In September 2023, the UK government unveiled new funding to support tourism zone development providing an infrastructure boost to hospitality in the region and hotel development.
   
• Germany's real estate strategy places a strong emphasis on sustainability and compliance. By updating properties with environmentally friendly certifications, smart systems, and low-impact designs, investors are supporting the country's energy efficiency and carbon neutrality goals. These procedures guarantee long-term asset resilience in a highly regulated market in addition to enhancing operational performance.
   
• For instance, In January 2024, Motel One opened a new hotel in Kiel, Germany, featuring digital check-in, energy-efficient systems, and maritime-inspired design. This expansion supports the brand’s strategy to grow in popular secondary cities with demand for stylish, affordable, and sustainable stays.
   
• While cities like Hamburg, Düsseldorf, and Leipzig are seeing rising investment interest, major hubs such as Berlin, Munich, and Frankfurt remain key magnets for business travelers and urban tourists, driven by strong transport links, service quality, and demand for diverse, upscale lodging options.
   

The hospitality real estate investment market in the India in Asia Pacific is expected to experience significant and promising growth from 2025 to 2034.
 

• India in the Asia-Pacific region is dominant in the hospitality real estate investment market through the force of urbanization, increased metropolitan population, tourism, and infrastructure improvement policies by government initiatives like Swadesh Darshan and Dekho Apna Desh. The big cities such as Mumbai, Delhi, or Bengaluru experience the strong hotel pipeline growth whereas the tier-2 and tier-3 cities are becoming more attractive to investments as more people in India start travelling.
   
• China's major cities like Shanghai, Beijing, and Shenzhen still attract business and foreign tourists. While emerging travel destinations like Chengdu, Hangzhou, and Xi'an are becoming more well-liked for leisure travel. These markets are particularly appealing due to their diverse cultures, rising demand for unusual travel experiences, and expanding urban populations. 
   
• For instance, in March 2024, IHG Hotels & Resorts opened the Kimpton Bamboo Grove Suzhou, its first Kimpton property in Greater China. Inspired by Suzhou's garden traditions and situated along serene canals, the hotel provides visitors with a modern take on a deeply local experience.
   
• China and Japan also play an important role, with China also leading in the luxury and resort sector in such areas as Hainan and Yunnan, which is complemented with high domestic tourism. Prior to key international events and improvement of infrastructure, Japan is receiving institutional investment.
   
• The newfound markets of Vietnam, Indonesia, and the Philippines are driving growth regionally which is propelled by the current state of tourism, foreign direct investments, and government incentives. The opportunities in this market are becoming more desirable in mid-scale and resort property development, particularly in secondary cities and island destinations.
   

The hospitality real estate investment market in UAE is expected to experience significant and promising growth from 2025 to 2034.
 

• MEA is experiencing moderate growth in investment projects in the hospitality real estate industry due to increasing tourism together with the move towards economic diversification and development of the infrastructure. A mix of massive constructions and the national strategies such as the Vision 2030 are introduced in the UAE and Saudi Arabia. Nevertheless, there are some obstacles systematically hampering expansion of the hospitality real estate investment market in other parts of Africa including poor funding and regulatory issues.
   
• UAE is in the lead as it is supported by the smart city implementation, top-notch infrastructures, and such mega-projects as the legacy of Expo 2020. For instance, in February 2024, Dubai set out to add to its hospitality presence new midscale and luxury hotels in time to host an increasing inflow of international visitors to continue its position as an international hub of tourism and investments.
   
• South Africa and Saudi Arabia act as the key players. Giga-projects such as NEOM and Red Sea Global are still being constructed in Saudi Arabia with global hospitality brands also getting drawn into the country through direct foreign investment. South Africa, whose two key tourism destinations theoretically include Cape Town and Johannesburg, is experiencing a second wave of hotel refurbishments and eco-tourism lodges amid a post-pandemic recovery period.
   
• Egypt, Kenya, and Nigeria are emerging hospitality markets, driven by growing travel demand, expanding middle-class populations, and supportive tourism policies. Investors are focusing on low- and mid-tier hotels, with public-private partnerships unlocking development in secondary and tertiary locations.
   

The hospitality real estate investment market in Brazil is expected to experience significant and promising growth from 2025 to 2034.
 

• Latin America captures a CAGR of 10% of the international hospitality real estate investment market in 2024 underpinned by an increasing tourist presence, attractive exchange rates to foreign investors, and the augmenting desire of different types of lodging. Although the region has huge potential, the differences in the infrastructural development and political stability of some countries are implicating challenges to even investment across the region.
   
• The Brazilian hospitality real estate investment market has been the strongest in Latin America due to a strong domestic tourism sector, infrastructure plans sponsored by government and big tourism/hospitality events. For instance, in January 2024, Accor declared new growth in Rio de Janeiro and Sao Paulo as a response to increased demand for mid-scale and lifestyle services in the hotel brands.
   
• Mexico and Colombia are on the rise, mostly due to the growing foreign direct investment, as well as government tourism favorites and high demand in major urban and resort cities. That investment is especially dedicated to boutique hotels, combined-use resorts, and branded homes that target US and European tourists.
   
• New opportunities are in the offing in Argentina, Chile, and Peru where there is diversifying trends in tourism and an enhancement in investor structures that are drawing new participants along. Local real estate developers and foreign companies are considering eco lodges, urban hotels and short stays particularly in zones with improved visitor movement and positive market regulations.
   

Hospitality Real Estate Investment Market Share

Top 7 companies of the hospitality real estate investment industry are Marriott International Inc., Hilton Worldwide Holdings Inc., InterContinental Hotels Group, Host Hotels & Resorts Inc., Park Hotels & Resorts Inc., Apple Hospitality REIT Inc., and Pebblebrook Hotel Trust around 31% of the hospitality real estate investment market in 2024.
 

• Marriott International remains at the forefront of the industry, with its wide range of brands and global reach. With the help of its well-liked Bonvoy loyalty program, the company concentrates on expanding in markets for resorts and high-demand urban areas. Marriott's long-term strategy strikes a balance between market diversification and upscale expansion, particularly in areas with growing tourism and economic growth.
   
• Hilton Worldwide Holdings Inc. has used an asset-light and franchising model to grow steadily and successfully. Its investment focus covers lifestyle and extended-stay segments, catering to traveler’s changing needs. With brands like Conrad and Hilton Garden Inn, Hilton is growing its presence in both developed and emerging markets while preserving operational flexibility.
   
• InterContinental Hotels Group combines well-known brands like Holiday Inn and InterContinental with an expanding portfolio of contemporary, design-driven hotels. With an emphasis on quality, comfort, and sustainability, it has been renovating older buildings and making new ones in strategic cities. To meet the growing expectations of travellers for more seamless and personalized stays, IHG is also investing in improved digital services.
   
• Host Hotels & Resorts, one of the most well-known hotels, which has a sizable portfolio of upscale and luxury hotels spread throughout important American cities. The business adopts a methodical, long-term strategy, making frequent investments in improvements and renovations to maintain the appeal and newness of its properties.
   
• Park Hotels & Resorts owns most of the large, full-service hotels, which are run by well-known brands like Hilton. The business has been streamlining its portfolio lately, selling properties that do not align with its objectives and concentrating more on areas that yield good results.
   
• Apple Hospitality REIT adopts a direct and targeted strategy. It primarily uses well-known brands like Marriott, Hilton, and Hyatt to invest in select-service hotels across the US. These hotels serve both business and leisure travelers and are in regions with a constant need for travel. Apple appeals to investors who value steady returns and long-term stability because of its dependable, hassle-free approach.
   
• Pebblebrook Hotel Trust focuses on upscale, boutique hotels in vibrant urban and coastal markets like Boston, Miami, and San Francisco. Their properties emphasize local culture, cuisine, and unique experiences, appealing to travelers seeking distinctive stays beyond traditional hotels.
   

Hospitality Real Estate Investment Market Companies

Major players operating in the hospitality real estate investment industry are:

• Apple Hospitality
• Choice Hotels
• Hilton
• Host Hotels & Resorts
• InterContinental
• Marriott
• Park Hotels & Resorts
• Pebblebrook Hotel
• RLJ Lodging
• Wyndham Hotel

• Apple Hospitality and RLJ Lodging Trust emphasize on bringing upscale select-service and extended-stay hotels in major markets within the US, with the power to generate continuous cash flow, and positioning to come up with efficient operations.
   
• Choice Hotels and Wyndham Hotels & Resorts dominate the midscale and economy segments because their franchise models are widespread, focusing on the use of technology to provide guests with a memorable experience and the development of loyalty programs to attract the broadest audience.
   
• Hilton, Marriott International, and InterContinental Hotels Group have proved to be at the forefront of the international hospitality property sector market achieving differentiation, solid loyalty system, and continuous capital investment in technology and sustainability to maximize personalization of guests and premium asset expansion.
   
• Host Hotels and resorts and Park Hotels and resorts are business firms which focus on high-quality urban and resort business oriented in strategic asset optimization and value-added opportunities to achieve maximum shareholder returns.
   
• Pebblebrook Hotel trust stands out by investing in lifestyle and boutique hotels within thriving cities and coastal destinations attracting tourists who want an escape to experience a more cultured experience.
   

Hospitality Real Estate Investment Industry News

• In May 2025, the debut of Marriott International's first entirely solar-powered property under the Element brand in Southern California was announced. The hotel incorporates eco-friendly guest programs, energy-efficient systems, and sustainable materials.
   
• In March 2025, Host Hotels & Resorts unveiled a significant renovation plan, for several of its premier urban properties, which includes improvements to wellness centres, public areas, and digital guest services. The investment, according to the company, was intended to increase long-term asset value and guest satisfaction, especially in high-demand markets like New York and San Francisco.
   
• In August 2024, Hyatt Hotels Corporation announced that it had acquired a luxury lifestyle property in Lisbon, as part of its continuous European expansion. With plans to incorporate regionally specific art, food, and wellness offerings, the move furthers Hyatt's emphasis on upscale, experience-driven travel in culturally diverse locations.
   
• In September 2024, Park Hotels & Resorts reopened a completely refurbished property in downtown Chicago, with improved wellness amenities, contemporary co-working spaces, and guest rooms. The renovation is a component of Park's larger initiative to realign its urban assets to better suit the needs of modern tourists, particularly those who combine work and play.
   
• In July 2024, Accor announced plans to open more than 30 new hotels under the Novotel and Mercure brands throughout Asia-Pacific. To satisfy the growing demand from domestic and regional travellers, the expansion focuses on rapidly expanding urban hubs and secondary cities. As part of its growth strategy, Accor highlighted the significance of locally rooted experiences, digital convenience, and flexible design.
   

The hospitality real estate investment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn) and from 2021 to 2034, for the following segments:

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Market, By Property

• Traditional hotels
  • Luxury hotels and resorts
  • Full-service hotels
  • Limited-service hotels 
• Extended stay and serviced apartments
  • Extended stay hotels
  • Serviced apartments
• Vacation rentals and short-term rentals
  • Vacation rental properties
  • Short-term rental platforms
  • Hybrid accommodation models
• Alternative accommodation types
  • Glamping and outdoor hospitality
  • Hostels and budget accommodations
  • Specialized accommodation

Market, By Investment Structure

• Real estate investment trusts (REITs)
  • Publicly traded hotel REITs
  • Private placement REITs
  • Specialized REIT structures 
• Private equity and investment funds
  • Private equity real estate funds
  • Hedge funds and alternative investments
  • Sovereign wealth and pension funds
• Direct property ownership
  • Individual investor ownership
  • Corporate and institutional ownership
  • Joint ventures and partnerships
• Alternative investment platforms
  • Crowd funding and fractional ownership
  • Digital and blockchain investments

Market, By Application

• Business and corporate travel
• Leisure and tourism
• Healthcare and medical tourism
• Education and training

Market, By Deployment

• Urban and metropolitan markets
• Resort and destination markets
• Secondary and tertiary markets
• Mixed-use and integrated developments

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia
  • Philippines
  • Malaysia
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa