Hotel REIT Gross Asset Value Index – June 2026

June 24, 2026

Hotel REIT Values Are Entering a New Phase: Introducing Capright’s Hotel REIT Gross Asset Value (GAV) Index

The hospitality real estate market has proven remarkably resilient over the past several years. While higher interest rates and expanding capitalization rates have challenged CRE valuations, hotel fundamentals continue to strengthen, creating new opportunities for investors, lenders, asset managers, and valuation professionals.

To help the market better understand these trends, Capright is proud to introduce the inaugural Hotel REIT Gross Asset Value (GAV) Index, a new research benchmark that tracks the changing value of publicly traded hotel portfolios through both operating performance and market valuation.

A New Perspective on Hotel REIT Valuation

Unlike traditional performance metrics that focus solely on revenue or occupancy, the Capright Hotel REIT GAV Index measures how hotel asset values have evolved over time by tracking 13 publicly traded Hotel REITs dating back to 2016. The report separates operational performance from capital market influences, providing a clearer picture of what is truly driving hotel valuations.

Among the report’s key findings:

• GAV per room increased 26% based solely on improving operating performance.
• Market-adjusted GAV increased 19%, reflecting the impact of higher capitalization rates.
• A 7.6-point valuation gap emerged as cap rate expansion offset much of the industry’s operating recovery.
• 2025 marked the strongest value-per-room growth since the post-pandemic recovery, suggesting improving momentum entering 2026.

Understanding What’s Driving Hotel Asset Values

One of the most valuable insights from the index is its ability to isolate the relationship between hotel operations and valuation.

Following the pandemic, hotel portfolios became significantly leaner as operators reduced expenses while gradually rebuilding revenue. Net operating income continued to improve, but rising capitalization rates limited the full appreciation of hotel asset values.

The result is a market where operating fundamentals have strengthened faster than realized valuations, an important distinction for investors, lenders, and institutional real estate owners evaluating hospitality assets.

Reasons for Optimism in the Hospitality Sector

Although higher capitalization rates created a headwind over the past several years, recent performance suggests the lodging sector may be entering a more favorable environment.

The report highlights that:

• Hotel operating performance exceeded expectations during 1Q26.
• Value per room expanded more than 4% in 2025, representing the first meaningful acceleration since the recovery.
• Stabilizing capitalization rates could allow continued operating gains to translate into stronger hotel asset value growth throughout 2026.

For CRE professionals, these trends point toward improving conditions across the hotel investment landscape.

Independent Research for Institutional Decision Makers

As an independent valuation and advisory firm, Capright developed the Hotel REIT GAV Index to provide greater transparency into the forces shaping hotel valuations.

Whether you’re an institutional investor, lender, REIT executive, fund manager, or CRE professional, the index offers an objective framework for understanding how operating performance, capitalization rates, and market conditions interact to influence hotel asset values.

📬 Let’s Talk

At Capright, we are uniquely positioned to support institutional investors, operators, and developers navigating this evolving environment. As an independent valuation and advisory firm, we provide clarity, accuracy, and confidence, especially where the stakes are highest.

If you’d like to discuss the findings or need support with your commercial real estate valuation or strategy, reach out to: