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Investors return to luxury hotels in major cities
Yahoo Finance· 2025-11-28 04:03
Core Insights - Investors are increasingly interested in luxury and upper-upscale hotels in major cities globally, following a resilient 2024 with 4.8 billion global room nights and a 4% increase in RevPAR [1][2] Regional Performance - Europe and the Americas have largely returned to pre-pandemic levels, while Asia-Pacific is still recovering, with China's travel market showing significant growth potential for hotels [2][5] - Analysts project global RevPAR growth of 3–5% in 2025, driven by leisure travel, corporate bookings, and international group demand [2] Investment Trends - Major cities like London, New York, and Tokyo are attracting investors due to high demand for premium and lifestyle hotels [3] - Urban hotels, particularly in the luxury segment, are gaining attention from institutional investors and private equity [4] - Global hotel investment is expected to increase by 15–25% in 2025, influenced by factors such as upcoming loan maturities and deferred capital expenditure [4] Market Opportunities - The evolving hotel market presents opportunities for both new investors and established operators, with international travel and corporate events driving performance in major cities [5] - Careful asset management can enhance returns, although results will vary across regions, necessitating informed, data-driven strategies [5] Future Outlook - As 2025 approaches, luxury and lifestyle hotels in major cities will remain a priority for investors seeking growth, stability, and long-term opportunities in the global hotel sector [6]