- Debt maturities push more hotels onto the market.
- Luxury hotels lead RevPAR growth at 9.4 percent.
- Resorts account for 31 percent of hotel investment volume.
U.S. hotel transaction volume reached $22.2 billion through the third quarter of 2026, up 37 percent from a year earlier, according to JLL’s U.S. Hotel Investment Market Update – Q3 2026. The data covers deals of at least $5 million and excludes casinos.
The number of transactions increased 58 percent to 928, while single-asset sales rose 50 percent to $20.4 billion. The increase in sales comes as hotel owners face billions of dollars in upcoming debt maturities.
Loans come due
About $84 billion in U.S. hotel loans to known lenders will mature by the end of 2027. Of this amount, $33.7 billion is due in 2026 and $50.1 billion in 2027. Another $40.2 billion will mature in 2028, followed by $35.3 billion in 2029 and $31.7 billion in 2030.
These loan deadlines could lead to more hotel sales and recapitalizations. Some owners also face fund maturities, higher operating costs and the need to spend money on their properties. They will have to decide whether to refinance their loans, bring in new investors or sell. Buyers with strong financial positions and the ability to close deals quickly could find opportunities.
Hotel owners face fund maturities, rising costs and property upgrades.Photo credit: iStock
Hotel lending has also increased. U.S. hotel loan originations reached $44.3 billion in the first half of 2026, up about 62 percent from $27.3 billion during the same period in 2025. Banks and commercial mortgage-backed securities were the main sources of loans. JLL described lending conditions as stable and reported that changes in interest rates had not had a major effect on deal activity or pricing.
Room rates rise at different levels
U.S. hotel RevPAR reached $108 through September, up 5.6 percent from a year earlier. Occupancy rose to 65 percent from 63 percent, while ADR increased to $167 from $161. JLL raised its 2026 RevPAR growth forecast to 4.4 percent from 0.6 percent at the start of the year.
Performance differed by hotel category. Luxury hotels recorded the highest RevPAR growth at 9.4 percent. Upper upscale hotels followed at 5.8 percent, upscale at 4.9 percent and upper midscale at 4.5 percent. Midscale hotels recorded 3.5 percent growth, while economy hotels increased just 0.4 percent.
San Francisco led the markets tracked, with RevPAR growth of 19.4 percent through September. Chicago followed at 12.7 percent, Philadelphia at 11.5 percent, Miami at 10.6 percent and Orange County, California, at 10.5 percent. RevPAR declined 0.8 percent in Tampa Bay and 6.4 percent in New Orleans.
New hotel supply is expected to remain low. U.S. supply is forecast to grow 0.4 percent in 2026 and 0.6 percent in 2027, below the long-term average of 1.6 percent. Limited new development could support the performance and value of existing hotels.
Investors focus on resorts and premium hotels
Investors are showing interest in high-value hotels in major leisure destinations and gateway cities, as well as premium select-service properties. Stronger midweek business travel and group demand are also supporting hotel performance.
Resorts accounted for 31 percent of hotel investment volume.Photo credit: iStock
Resorts accounted for 31 percent of single-asset hotel investment volume through the third quarter, up from 26 percent in 2025. City and urban hotels made up 30 percent, while suburban and greater metro properties accounted for 23 percent.
Private equity firms represented 24 percent of investment volume, while high-net-worth buyers accounted for 18 percent. Owner-operators made up another 21 percent. Deals worth $500 million or more represented 15 percent of volume, while deals below $50 million accounted for 51 percent.
Higher-priced hotel sales also increased. There were 12 single-asset deals valued at more than $1 million per key through the third quarter, three times the four recorded during the same period in 2025. Four of these deals took place in the third quarter alone.
Hotel owners face major loan repayments over the next two years. At the same time, rising sales and higher lending activity point to continued movement in the hotel investment market.
Separately, a PwC report forecast U.S. hotel RevPAR growth to slow to 3 percent in 2027 as demand and supply growth moderate.
