Hotel Deals Outlook: Hot for Luxury, Frozen for Mid-Size Properties

As 2025 begins, hotel dealmakers in the U.S. face a complex landscape where opportunities vary dramatically by location and property type.

That's the view of Dan Peek, President, Hotels & Hospitality, Americas, at hotel brokerage JLL. Peek has a notable perspective because JLL has helped trade more than $60 billion in hotel assets over the past six years.

Peek expects the post-pandemic recovery to continue, with market performance rotating from Sun Belt states to major urban centers.

Houston currently leads U.S. markets in performance, while New York and Chicago have shown recent strength — a pattern that could extend into 2025 as office attendance and corporate travel patterns continue to normalize.

The U.S. hotel transaction market varies by location and type of hotel. Properties below $50 million —typically select-service hotels — remain liquid as local entrepreneurs and regional banks keep capital flowing.

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