Investing in hospitality in 2026: winning models for sustainable hotel returns
Understanding the new performance drivers for investing in hospitality in 2026
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In Brief
In This Article
After several years of reshaping, the hospitality industry is entering 2026 in a new phase of maturity. The post-Covid recovery has given way to a more selective market, where investing in a hotel is no longer just about buying bricks and mortar, but about structuring a high-performing operating model that is agile and resilient.
Rising construction costs, changing usage patterns, new guest expectations, and pressure on traditional returns: the context is pushing investors to rethink their strategies.
In 2026, the winning models will be those that combine hotel returns, operational flexibility, and differentiated uses.
At Moon Hospitality, we support private investors, family offices, and institutional partners through this transition by structuring hotel projects with a strong identity and sustainable performance.
1. Why traditional models are reaching their limits
Towards a new way of understanding hotel performance
Costs are rising and margins are tightening. Inflation in construction and operating expenses, sustained increases in energy and labor costs, as well as stricter regulatory and environmental requirements, are directly impacting the profitability of projects.
Les coûts augmentent et les marges se resserrent. L’inflation des travaux et de l’exploitation, la hausse durable des charges énergétiques et salariales, ainsi que le renforcement des exigences réglementaires et environnementales impactent directement la rentabilité des projets.
Poorly differentiated assets are now struggling to maintain attractive hotel returns.
At the same time, demand is evolving. More volatile, it is also becoming more demanding. Today’s travelers are looking for:
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distinctive experiences,
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hybrid spaces,
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a clear consistency between uses, positioning, and pricing.
In this context, hotel assets are no longer assessed solely on their location, but on their ability to create use value, generate additional revenue streams, and integrate sustainably into their environment.
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2. High-yield hotel models
Decoding the most high-performing hotel investment strategies in 2026
✧ Hotel repositioning: creating value where it no longer exists
Hotel repositioning involves transforming an aging or underperforming asset into a hotel with a strong identity, better aligned with its market and uses. In 2026, this model is emerging as one of the most effective ways to create value.
It is notably based on often discounted acquisition prices, immediate value creation through concept and guest experience, and medium-term asset revaluation.
At Moon Hospitality, we have shown that repositioning makes it possible to significantly improve GOP and RevPAR without necessarily increasing capacity, by focusing first on positioning and operations.
✧ Hybrid hotels: maximizing flows, securing ROI
Among the most high-performing models in 2026, usage hybridization plays a central role. It combines hospitality with other complementary functions—such as food and beverage, workspaces, or cultural programming—to bring the place to life beyond the overnight stay.
These hotels therefore generate recurring ancillary revenues, attract a local customer base, and enable better absorption of fixed costs.
Hotel returns are therefore optimized: dependence on occupancy rates decreases, and the model gains resilience against economic cycles.
✧ “Asset-light” and partnership-based structures: flexibility and long-term performance
Finally, more and more investors are turning to “asset-light” or partnership-based structures. These models rely on separating real estate ownership from operations, integrating an expert operator from the early stages, and adopting a more flexible cost structure.
These structures make it possible to:
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better risk management,
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stronger alignment of interests between investors and operators,
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more stable and more predictable long-term performance.
3. Moon Hospitality’s analysis
Structuring a hotel investment capable of withstanding market cycles
In 2026, investors are no longer satisfied with attractive headline returns.
Above all, they are looking for robust, transparent projects capable of withstanding market cycles:
a clear concept, a model that can be operated sustainably over time, and a real ability to adapt to changing market conditions.
At Moon Hospitality, this requirement translates into a structured approach built around three essential pillars:
– a strong concept, designed in direct connection with its environment and uses,
– operations conceived as a performance lever, integrated from the very early stages of the project,
– a long-term vision, encompassing value creation, exit strategy, and asset transfer.
This global and coherent approach is what we apply across all projects developed and operated by Moon Hospitality.
✧ Anticipating 2026 and beyond: investing in hospitality with a structured approach
Investing in hospitality in 2026 requires a nuanced understanding of the market and its transformations.
This involves a precise analysis of the local context, an in-depth understanding of both traveler and local uses, and selecting an operator capable of managing simultaneously the guest experience and economic performance.
In a constantly evolving environment, the most high-performing models are no longer the most standardized, but the most intelligently structured, able to combine identity, agility, and sustainable returns.
