U.S. Hotel Property Sales Are Rising. What Is Driving the Increase?

More major hotel deals are closing

LW Hospitality Advisors reports that the number of major U.S. hotel sale transactions increased 26% in the first half of 2026 compared with the same period in 2025. Total dollar volume rose 38%. Its survey tracks individual hotel sales above $10 million, so the findings describe that segment rather than every hotel changing hands nationwide. LWHA’s midyear 2026 survey

The quarterly picture adds perspective. The firm counted 107 transactions totaling approximately $3.8 billion in the second quarter, compared with 89 transactions a year earlier. However, second-quarter activity fell from the first quarter’s 110 transactions and roughly $4.6 billion. The recovery has not moved in a straight line.

Financing and investor interest support activity

The improvement follows a stronger 2025. JLL reported $24 billion in U.S. hotel transaction volume for that year, up 17.5% from 2024. The firm identified improving debt markets and active private equity buyers as contributors, alongside increased participation by wealthy individuals and foreign investors. JLL’s 2025 investment report

JLL also pointed to opportunities to acquire existing hotels below replacement cost. That comparison helps explain the appeal of buying an operating property instead of developing a new one, although renovation needs and operating expenses still matter.

Our interpretation is that more workable financing can help buyers and sellers reach an agreement. A buyer’s offer depends partly on the debt available for that particular property, the equity required, and the income left after expenses. Better financing can support a transaction even when the hotel’s operating results have not improved dramatically.

Higher sales volume does not mean uniform price growth

LWHA’s second-quarter comparison illustrates the distinction: while transaction counts increased year over year, average sale price per room declined by just under 4%. Changes in the mix of hotels sold can influence these averages. LWHA’s quarterly comparison

JLL’s operating data also shows an uneven market. In 2025, revenue per available room rose 3% for luxury hotels, while midscale and economy properties recorded declines of 2.8% and 4.4%, respectively. Those figures measure operating revenue, not property appreciation. JLL’s segment analysis

For an owner, the useful question is how comparable hotels compete for guests and investment capital. A national percentage cannot capture your property’s condition, location, brand requirements, or cash flow.

What hotel owners can do with this information

A more active market is a reason to update your property analysis. Before evaluating an offer or deciding to hold, organize the information a buyer will need:

• Recent operating statements, occupancy, room rates, and seasonal results.
• Upcoming capital projects and any brand-required property improvement plan.
• Franchise and management agreements, including transfer conditions.
• Debt maturity dates and any costs associated with a sale.
• Recent comparable sales with similar location, service level, and condition.

Our takeaway: the increase in hotel sales expands the conversation about timing and potential buyers. The decision to sell still rests on the property’s economics and your ownership goals.

Have a hotel or other commercial property you are considering selling? Tell Cash 4 Commercial about your property, or call 844–844–0200.