US Trends in Hotel Investment: Key Regions, Growth Rates, and Projected Returns

US Hotel Investment Trends 2025

Optimism & Strategic Shifts

The 2025 US hotel investment landscape is marked by strong investor confidence and a clear pivot towards urban and luxury markets, driven by the resurgence of business and group travel.

94%

of investors plan to maintain or increase hotel investments, up from 85% in 2024.

+1.3%

projected average RevPAR growth (CBRE), with urban locations outperforming at +2.2%.

60%

of investors are now targeting full-service hotels, a threefold increase from 20% in 2024.


Interactive Market Explorer

Dive into the performance of key investment markets. Click on a city in the chart below to see its specific metrics, key drivers, and development highlights. This allows for a direct comparison and deeper understanding of regional dynamics.

Projected RevPAR Growth (2025) & Recent Performance


2025 Investor Preferences

Investors are strategically shifting their focus towards specific locations, chain scales, and property types that capitalize on the current recovery trends, moving upmarket to capture higher returns.

Favored Location Types

A strong belief in the recovery of business and group travel fuels the focus on CBDs.

Favored Chain Scales

Investors are moving upmarket, targeting premium segments with resilient demand from higher-income travelers.

Shift in Property Type Focus (2024 vs 2025)

The resurgence of corporate travel has caused a dramatic pivot to full-service hotels, which were less favored during the leisure-led recovery.


Outlook & Strategic Opportunities

Navigating the 2025 market requires balancing optimism with awareness of key risks. Click through the tabs below to explore the primary forces shaping investment strategy, from economic drivers to opportunistic plays.

Pri
Author: Pri

Pri is a seasoned professional with expertise in commercial real estate advising, development, and hospitality management. Over the past decade, Pri has guided property investors, led development projects, and crafted personalized hospitality experiences. His strong educational background and professional associations highlight their commitment to excellence. As a commercial real estate advisor, Pri navigates complex investments while leading various ventures as CEO and President, emphasizing integrity and tailored services through platforms like Elite Hotel Investor’s Club. In hospitality, Pri blends Indian values to create inviting experiences at Nice N Neat Homes. With 13+ years in Ohio's real estate scene, he bridges cultural and local insights. Pri speaks English, Hindi and Gujarati Pri's civic engagement also demonstrates a commitment to community improvement, advocating for transportation accessibility and regional development. This complements their real estate work, providing valuable perspectives on local government dynamics.