The Observatory

Luxury Hotels

An institutional view of the global luxury hotel category — covering capital flows, brand activity, RevPAR dynamics and the structural drivers of value.

Defining Characteristics

·Five-star positioning
·International branding or independent flagship
·ADR above national luxury median
·Material wellness or F&B component

Key Metrics

$412

Global RevPAR (TTM)

+6.2% YoY

5.42%

Average Cap Rate (Prime)

−14bps YoY

$48.6B

Transaction Volume YTD

+9.1%

Outlook

Demand remains rate-led, with discipline returning to development. Capital is reconcentrating around trophy assets and curated independents.