The U.S. luxury hotel sector is entering a new investment cycle, with transaction activity accelerating as fundamentals and capital markets strengthen, according to a new JLL report.
Ultra-luxury hotels continue to lead the recovery, reaching 148 percent of pre-pandemic performance levels through April 2026—ahead of broader luxury (133 percent) and the overall U.S. market (120 percent). In a set of 47 properties with ADRs above $1,000, RevPAR hit $872 year-to-date, underscoring sustained demand from high-net-worth travelers.
That demand is being fueled by a widening gap between wealth creation and supply. Global wealth has grown at a 9.6 percent CAGR over the past decade, while ultra-luxury hotel supply rose just 2.3 percent, creating a structural imbalance that supports pricing and long-term investment upside. The U.S. alone accounts for 23,831 thousand millionaires and anchors nearly 40 percent of global wealth.
Investment activity is now catching up. Luxury hotel transaction volume jumped 115 percent year over year in the first quarter, with recent trades including the our Seasons Resort Orlando ($765M), Four Seasons Jackson Hole ($350M) and Ritz-Carlton Central Park ($320M). JLL notes that luxury transactions typically occur in 18- to 36-month cycles, positioning 2026 as the start of the next active window.
At the same time, improving lending conditions, improving debt conditions and potential cap rate compression are creating favorable investment conditions. Private equity participation has increased, representing 29.6 percent of luxury transactions since 2015, alongside significant institutional investor (11.1 percent) and REIT (24.8 percent) activity.
Together, those factors are creating what JLL describes as “a compelling moment for luxury hotels.”