As luxury hotels continue their strong performance, investment in assets remains strong
Luxury trades show soaring prices per key
Luxury hotel sales continue at a brisk pace
U. S. Luxury class, total sales volume and price per key, by quarter, Q1 2023 – Q3 2025
“ With elevated construction costs, new luxury supply remains limited, providing a continuing tailwind for pricing.”
LUXURY CLASS HOTEL SALES CONTINUED at a healthy clip through the first three quarters of 2025. Approximately $ 2.3 billion worth of assets changed hands in this period, underscoring continued interest in the asset class. The average price per key has soared to $ 612,000, up seven percent from the same period in 2024 and more than 23 percent from 2023.
Demand and traveler behavior keep luxury resilient Luxury is still the brightest corner of hospitality, fueled by the same affluent households driving premium demand across other sectors. On the operating side, rate premiums at the high end remain wide: Through August, luxury class average daily rate( ADR) was $ 434, almost three times the U. S. national ADR of $ 160.
Premium travel behavior backs up this trend: Airlines reported healthy premium-cabin revenue even as Main Cabin softened, signaling that higher-income travelers continue to pay for better seats— and, by extension, better rooms.
Some operators are worried about price fatigue, but the willingness of consumers to splurge on“ experiential” stays and amenities has so far remained intact, especially when the property feels unique or restorative. This drives most luxury-class hotels to offer spa experiences, as today’ s highend traveler expects this amenity.
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