Written by: Dimitris Manikis, President, Europe, Middle East, Eurasia, and Africa (EMEA), Wyndham Hotels & Resorts
As we move into 2026, the hospitality landscape continues to evolve in ways that present both headwinds and tailwinds for investors and developers alike.
The fundamentals of hotel investment are realigning. Capital that sat on the sidelines during the uncertainty of recent years is returning with conviction. Guests are becoming more sophisticated in what they expect from their stays. Technology is shifting from nice-to-have to essential and ESG has moved from voluntary commitments to regulatory requirements that affect financing and valuations.
From our position as the world's largest hotel franchisor, we have a unique perspective on how these forces are reshaping the industry. What's clear is that success in 2026 won't come from chasing individual trends, instead it will come from understanding how they interact and executing strategically across all of them.
Capital is returning to hotels
Hotel investment is showing signs of a genuine rebound. Projections indicate volume growth of 15-25% in 2025 compared to the previous year, which reflects a broader shift in how capital views hotels relative to other commercial real estate asset classes.
Private equity remains the most active buyer category, but we're also seeing growing interest from high-net-worth individuals, REITs and, perhaps most tellingly, first-time hotel investors entering the sector at near-historic levels. This trend started in 2024 and looks set to continue through 2025 and into 2026. What's drawing this capital is straightforward: hotels currently offer stronger yields than much of the commercial real estate market, particularly as operational performance improves and supply growth moderates.
Urban markets are particularly interesting right now. Many gateway cities show historic discounts to replacement cost, which creates attractive entry points for investors taking a long-term view. At the same time, the $48 billion CMBS maturity wave coming in 2025-2026 is creating transaction opportunities as owners face refinancing decisions in a very different interest rate environment than when they originally took out their loans.
At Wyndham, we're responding to this appetite for hotel investment with our Owner First approach. Our development pipeline now stands at a record 254,000 rooms globally, which speaks to the confidence that franchisees and owners have in our model and strategy.
The evolution of what guests want
Travel is becoming increasingly splintered. The luxury segment is thriving whilst budget segments face pressure. The luxury segment posted 5.3% RevPAR growth year-to-date through August 2025, according to STR data, whilst economy hotels dropped 1.8%. What we're seeing is that higher-income travellers are maintaining their spending habits even as the broader economy faces headwinds.
Wellness tourism is a good example. The sector is expected to top $1 trillion globally in 2026. What guests want has moved well beyond spa treatments – we're talking biohacking retreats, proper nutrition programmes, mental wellness offerings and beyond. The properties doing well the ones building this into their identities and those creating communities around longevity concepts and offerings .
Branded residences are another example. Over 240 new projects launched around the world in 2024, blending hotel-quality services with residential living.
We're equally responding on both fronts. Recent openings like the Dolce by Wyndham Siracusa, Monasteri Golf and Spa in Sicily and the Signature Cave Cappadocia, Trademark Collection by Wyndham show our commitment to distinctive, memorable properties. On the residences side, our pipeline includes Wyndham Residences Piraeus Marina Zeas opening early 2026, Wyndham Grand La Cala Golf Residences on Spain's Costa del Sol in April 2026, and Ramada Residences by Wyndham in Halkidiki, Greece, in May 2026.
Another notable trend is the rise of multi-generational travel. For the first time, we're regularly seeing three generations of the same family travelling together (grandparents, parents and children), each with distinctly different needs and spending power. The grandparents might prioritise accessibility and comfort while parents seek family-friendly amenities and convenience, with younger generations looking for connectivity and experiences worth sharing. Properties that can accommodate this range of expectations simultaneously are capturing disproportionate value.
Technology as competitive advantage
AI and automation have moved from being experimental to essential. According to the 2025 State of Hotel Guest Tech Report, 58% of guests now believe AI can meaningfully improve their stay. This sentiment is reflected in the growing hotel automation market valued at $18.5 billion in 2024, it is projected to surpass $25 billion in 2029.
Revenue management is where we're seeing the most immediate impact. Hotel groups using AI-enabled systems are reporting RevPAR gains of 10-15% at the portfolio level. These systems learn continuously from booking patterns, competitor movements and hundreds of demand signals that were previously invisible. All of this information enables hotels to make precise pricing decisions.
AI helps on the guest side too, chatbots that work around the clock, recommendations based on preferences and smart room controls are all good examples. What's telling is that 93% of hoteliers report actual efficiency gains once they adopt these systems, from housekeeping right through to energy use.
We've invested over $325 million in digital transformation over six years at Wyndham, but what differentiates our approach is how we deploy it. Our Owner First philosophy means technology needs to deliver measurable returns for franchisees, not just check boxes for corporate.
Our Wyndham Connect PLUS platform uses AI to handle SMS communications, voice-activated reservations and self-service check-ins – the repetitive tasks that consume staff time without adding value. Wyndham Gateway, our guest Wi-Fi portal, creates engagement opportunities from the moment guests connect. Together, these tools free property teams to focus on the interactions that drive loyalty and revenue.
The philosophy is straightforward: technology should make properties more profitable and guests happier, not replace the human element that defines hospitality.
ESG moving from voluntary to mandatory
ESG considerations have evolved from voluntary commitments to mandatory requirements that affect how hotel assets get financed and valued. Europe's CSRD, requiring initial 2024 reports throughout 2025, and the CSDDD, effective since July 2024, establish compliance requirements that extend beyond geographical boundaries.
ESG requirements now come from two key sources. Major corporations require sustainability data before approving hotels for business travel programmes, whilst lenders increasingly factor ESG performance into financing decisions. The result is that hotels with strong energy efficiency and ESG credentials benefit from both corporate partnerships and more favourable financing terms.
On the consumer side, 70-78% of travellers now prioritise hotels with sustainable practices. As younger demographics become a larger share of the market, this preference will only strengthen.
Our Wyndham Green Program provides franchisees with the tools to measure and reduce their environmental impact. The programme combines our Green Toolbox, an environmental management system tracking energy, water, and waste data with a five-level certification that guides properties through progressive sustainability improvements. Certification grew 32% globally in 2024, with over 3,000 franchisees now providing utility data. Meanwhile, our corporate headquarters operates on 100% renewable energy and maintains LEED Gold certification.
Where the growth is
Investment opportunities vary significantly by region, with different dynamics shaping returns across geographies.
The Middle East continues to shine. Gulf states are delivering 2-3% ADR growth overall and up to 5% in luxury above global averages. Dubai saw a 6.1% year-over-year increase in international visitors, reaching nearly 10 million in the first half of 2025 as the UAE's diversification efforts continue to yield. Meanwhile, Saudi Arabia's Vision 2030 is still driving massive development.
Asia-Pacific shows solid fundamentals as the region's expanding middle class and rising travel spending create compelling long-term prospects. International arrivals are up 11% year-over-year in the first half of 2025 (92% of pre-COVID levels).
Europe is more stable, with 1.5-2% ADR growth expected for 2025. Southern European markets (Greece, France, Spain and Italy) have a good supply-demand balance going for them, with little new supply coming through 2029. Paris, London and Rome keep pulling in travellers from the US and Asia, which supports the premium end of the market.
At Wyndham, our EMEA growth reflects these regional dynamics. We opened 21 new hotels in Southeast Asia during the first half of 2025. For example, in Turkey, where we operate over 125 Wyndham-branded hotels, we're well-positioned to capitalise on a thriving market which is projected to have welcomed 70 million international visitors in 2025. As of September 30, 2025, Wyndham's EMEA portfolio stood at 750 hotels (a 14% increase year-over-year) with a development pipeline that continues expanding.
What it means for 2026
The trends shaping hotel investment and development in 2026, far beyond abstract concepts, are shaping our decisions on a daily basis. At our Executive Summit in Copenhagen in October, we gathered over 150 hotel partners and industry leaders to discuss exactly these dynamics: how capital is moving, what guests want, where technology creates real advantage, and which markets offer genuine growth prospects.
The consensus is clear. Success in 2026 requires executing across multiple dimensions simultaneously, deploying capital in markets with real demand, designing properties that balance experience with efficiency, and using technology to enhance rather than replace hospitality. Those who treat these as separate priorities will struggle. Those who understand how they reinforce each other will thrive.
That's the approach driving our results. Through 2026, we will continue working with our franchisees and partners to turn these trends into sustained competitive advantage.