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Spring travelers and investors alike will see a thriving hotel sector this season. According to CBRE’s most recent survey of U.S. investors, sentiment is increasingly positive, with 94% expecting to maintain or increase their hotel investments in 2025, compared with 85% last year.
The most favored location types in 2025 are central business districts and resorts, with airport and suburban assets cited as the least attractive. The most popular hotel types are higherpriced chain scale segments, the Q4 CBRE U.S. Hotel Investor Intentions Survey says.
Potential deterrents cited by investors include decelerating RevPAR growth, combined with labor, insurance and capital costs, and the unpredictable federal borrowing rate.
In a switch from 2024, investors appear more bullish on independent hotels, with 14% expecting to acquire them this year versus 10% last year, CBRE says.
“Nearly 60% of survey respondents said full-service hotels are their most likely target for acquisition or development this year, compared with 20% in 2024, perhaps due to the resurgence of business transient and group travel and the rise in return-to-office mandates.”
New York City was cited as the most attractive investment market for the second consecutive year due to limited hotel supply and strong consumer dynamics. San Francisco was second-most favored, followed by Dallas.
More investors named Washington, D.C., and Hawaii as attractive investment markets this year than last year, while expectations for Miami cooled.
