Annual
2025–2026
Annual Luxury Hospitality Outlook
Published January 2026
Annual · 2025–2026
Annual Luxury Hospitality Outlook
The principal annual reference for owners, allocators and institutional participants in the global luxury hotel market.
Executive Summary
- 01
The luxury cycle remains mid-stage; supply discipline is the principal differentiator vs. prior cycles.
- 02
Wellness-led repositioning is the defining asset-management theme of the decade.
- 03
Heritage stock outperforms newly built luxury on both occupancy and ADR growth.
Forecasts
Global Luxury RevPAR (3Y CAGR)
+5.4%
Transaction Volume (3Y CAGR)
+9.0%
New Supply Growth
+2.1% p.a. (disciplined)
Risk Considerations
- — Cycle elongation creates complacency in underwriting
- — Brand fragmentation diluting equity
- — Climate and insurance cost inflation
Investment Outlook
We favour patient capital, heritage stock, wellness-integrated repositioning and disciplined branded residences strategies.