Hospitality Real Estate in 2026: What Investors Need to Know About Hotels and Other Assets

Sector Moving From Caution to Opportunity

Hospitality entered 2026 as one of the sectors investors approached with the most caution. Rising operating costs and persistent gaps between buyer and seller pricing kept many would-be buyers on the sidelines. By late summer, the picture looks different. Deal activity is picking up, capital is moving beyond trophy assets, and specific segments are producing real opportunity. That opportunity is uneven, which is why investors increasingly rely on commercial real estate companies known for hospitality expertise before committing capital. Here are four things to understand about hotels and related assets this year.

Why Hotels Are Underwritten Like Businesses

Most commercial property is valued on the strength of its leases. A hotel has no long-term lease to lean on. Every room is effectively re-leased each night, so value rises and falls with operating performance. That is why hospitality commercial real estate is analyzed through metrics like average daily rate (ADR), occupancy, and revenue per available room (RevPAR) rather than rent rolls.

Ownership also carries obligations most asset classes do not. Flagged hotels must meet brand standards and periodic renovation requirements, and owners need to fund reserves for furniture, fixtures, and equipment (FF&E). A property that looks attractively priced can carry a large capital requirement once those cycles are factored in. This is one reason commercial real estate companies known for hospitality build their analysis around operations first and in-place income second.

Performance Is Splitting by Chain Scale

The widest gap in hospitality right now is between the market’s top and bottom. The Emerging Trends in Real Estate 2026 report from PwC and the Urban Land Institute found that the performance divide between luxury and economy hotels accelerated over the past year. Through August 2026, luxury properties posted year-to-date RevPAR growth of 5.3 percent, while economy hotels declined 1.8 percent.

For investors, that split cuts both ways. Luxury and upper-upscale assets offer stronger near-term performance, but they command premium pricing and attract heavy competition. Economy and midscale properties face softer revenue, yet that softness can create entry points. An underperforming hotel in a growing market may respond well to a brand change, a targeted renovation, or tighter management. Many of these opportunities sit in secondary markets, where demand often depends on local drivers such as regional employers, universities, and highway travel.

The key is separating a property with a fixable problem from one facing a lasting decline in demand.

Capital Is Returning, and Deals Are Broadening

After a slow stretch, hotel transaction activity is gaining momentum. CRE Daily reports that hotel-focused REITs are seeing a clear increase in deal flow, supported by improving fundamentals and competitive debt options. Just as important, activity is spreading beyond the luxury segment, with deeper bidder pools and broader investor confidence. Narrowing gaps between buyer and seller expectations could accelerate acquisitions through the rest of 2026 and into 2027.

Rising activity does not guarantee easy returns. Operating costs remain the central underwriting challenge. In the Emerging Trends survey, nearly three-quarters of industry leaders named labor costs and availability as a critical issue for 2026, and more than half flagged operating costs more broadly. Few asset classes feel those pressures as directly as hotels, where staffing drives the guest experience every day.

Buyers entering this window should stress-test expense assumptions as rigorously as revenue projections. Recent comparable sales help set pricing, but transaction data has limits, making local operating insight essential.

Beyond Hotels: Golf and Resort Properties

Golf courses and resorts follow the same operating-business logic as hotels, with added layers of complexity. Revenue may come from memberships, green fees, lodging, dining, and events, and it often shifts with the seasons. Land value and amenity conditions also weigh heavily on pricing. Golf and resort properties require advisors who can evaluate both the real estate and the business running on it.

Supply constraints can make these assets especially valuable. The Florida Keys offer a clear example. CRE Daily reports that hotel demand in the Keys rose 4 percent at the start of 2026, and RevPAR averaged $409 in the first half of the year. With little room for new inventory, owners hold significant pricing power, and new listings tend to draw a deep bench of buyers.

Not every leisure market has that protection. Some resort destinations are contending with overbuilding or shifting travel patterns, so investors need market-level supply analysis before assuming scarcity will support values.

What to Look for in Commercial Real Estate Companies Known for Hospitality

Hospitality rewards specialized knowledge, so choosing the right advisor matters as much as choosing the right asset. Investors comparing commercial real estate companies known for hospitality should look for four strengths:

• Operational fluency. The ability to interpret ADR, occupancy, RevPAR, brand requirements, and capital cycles, beyond cap rates alone.
• Buyer reach. Access to individual investors, private equity groups, and institutional hospitality funds, which supports competitive pricing.
• Local and national perspective. Knowledge of the demand drivers in a specific submarket, paired with exposure to buyers nationwide.
• Dedicated sector expertise. Advisors who focus on hospitality consistently rather than handling it occasionally.

SVN® International brings these strengths together. The SVN Hospitality Council connects hotel and resort specialists across the network to share market knowledge, deal experience, and best practices. That collective expertise, combined with a cooperative model that shares listings across offices nationwide, gives hospitality assets broad exposure to qualified buyers. SVN Advisors work across the full spectrum, from economy properties in secondary markets to destination resorts.

If you are evaluating a hotel, golf, or resort investment in 2026, connect with an SVN Advisor to discuss your market and goals.