2024 European Hotel Transactions
HVS discusses the main hotel transactions that took place in 2024 and looks at the trends in single-asset and portfolio transactions over the years.
Opinion Articles
Hunter Conference Takeaways: Survive 2025
The 36th Hunter Hotel Investment Conference took place this week at Atlanta’s Marriott Marquis, with the theme “Elevate Your Game” inspiring session topics and conversations throughout the event. This article provides our key takeaways from the conference.
The USALI 12th edition is finally out. Why is this good news and why it is never too late to adopt it.
On February 2025 HFTP finally launched the long-awaited 12th edition of the Uniform System of Accounts for the Lodging Industry (USALI), the standardized financial reporting system the hospitality industry has relied on for decades. The release of the 12th Revised Edition marks a significant milestone, introducing enhancements that align with contemporary industry practices and address emerging global challenges long ignored by the industry. What are the changes and how are these going to impact the hotel real estate business?
By Giuliano Gasparini, Board member of HAMA Middle East, HAMA MEA
Hospitality Investment in a Shifting Economy: Optimism, Opportunity, and Strategic Growth
With a new administration now in office and focused on advancing its legislative priorities, initial optimism about sustained economic growth has been tempered by uncertainty arising from fluctuating cross-border tariffs and significant policy revisions. However, the administration has reaffirmed its commitment to driving economic expansion through substantial deregulation, tax incentives, and strategic investments.
By Bill Grice, Head of Hotels - Americas, CBRE, CBRE Hotels
Tech Transformation: How Data Will Power Your Digital Adoption Journey
The hospitality industry is at a crossroads. Mergers and acquisitions abound, shining a spotlight on the increasing role of hotel management groups centralizing and automating operations. With an influx of new technology aimed at increasing efficiency, hoteliers are facing a critical question: How do we navigate system fragmentation, choose the right tech partners, and ensure our business remains competitive in an increasingly complex environment?
By Niki Johnson, Chief Product Officer, Otelier
Optimizing Hotel Selling Prices: who is the right investor at each stage of the life cycle?
Hotel investments represent a dynamic asset class within commercial real estate, attracting a broad range of investor types from private equity firms to real estate investment trusts (REITs) and high-net-worth individuals (HNWIs). Each investor category has a unique approach to asset acquisition, management, and divestment, making the timing and investor fit critical for maximizing a hotel’s selling price during its life cycle.
By Giuliano Gasparini, Board member of HAMA Middle East, HAMA MEA
The Role of Hotel Asset Management: Cultivating Prosperous Relationships
Hotel Asset Management is an intricate and essential facet of the hospitality industry. At its core, it is about optimizing the performance and value of a hotel property to achieve the owner's investment goals. But beyond the numbers, it is about identifying value creation initiatives, nurturing relationships that drive success, cultivate innovation and, most importantly, maximise asset potential in this vibrant sector.
By Giuliano Gasparini, Board member of HAMA Middle East, HAMA MEA
2025 Hotel Transactions: Market in Motion
Every January, the ALIS conference serves as a barometer for the hotel investment landscape, and in 2025, the mood was optimistic yet noticeably more restrained than in recent years. Regulatory optimism and improving labor dynamics were offset by potential tariff headwinds, lack of interest rate relief, and the rising cost of new tech and satisfying evolving guest preferences. These are but a few issues reshaping the industry in ways that demand both strategic foresight and operational agility. While some trends continue along familiar trajectories, others signal a reshuffling of the deck.
By Charles Oswald, CEO of Aperture Hotels and member, Cayuga Hospitality Consultants
U.S. Hotel Construction Hits Two-Year Low Amid Rising Costs and High Interest Rates
According to CoStar, there were 1,264 properties with a combined total of 151,129 guestrooms under construction in the United States as of November 2024, which represents approximately 2.6% of the existing inventory of U.S. hotel rooms. For perspective, the average monthly ratio of rooms under construction to total inventory since 2019 is 2.9%. Further, the 151,129 rooms under construction is the lowest figure since August 2022, which marked the end of the build out of projects that began prior to the pandemic. High interest rates for construction loans, combined with the relatively high costs for construction labor and materials, has suppressed development activity.
By Robert Mandelbaum and Will Webster
Global Giant SQ Capital, Inc. dominates hotel investment market share for 2 nd consecutive year
In my year-end missive following 2023, I reviewed the hotel transaction market dynamics comparing contrarian buyers to downhill skiers who don't want to follow in other's tracks and "wanna-be's" to cross country skiers who predominantly follow the leader's tracks. I simply could not understand why more investors were not placing bets on the inefficiency created by market noise when market stakeholders intuitively know that you should always buy when others are not. Well, other than one huge investor in the market, SQ Capital, Inc., 2024 logged in another down transaction year, as hotel transaction volume fell more than 10% after last year's calamitous 40% decline. For the second year in a row, SQ Capital was by far the largest investor in the market.
By Robert J. Webster, Vice Chairman, President CBRE Hotels Investment Properties, CBRE Hotels
Asset Management and Consulting for Hotels in 2025
Why would a hotel owner need an asset manager? The unique skills and knowledge an asset manager brings are invaluable. While a strong general manager may report directly to ownership, an asset manager or consultant can provide expertise in areas such as digital marketing, revenue management, engineering, housekeeping, front office operations, food and beverage, sales, and most importantly, budgeting and financial management. Their safety and security knowledge is often beyond that of many GMs. They also have the contacts to hire everyone needed and understand the human resources and legal requirements of operating in your state.
By Bob Rauch, President of RAR Hospitality, R.A. Rauch & Associates, Inc.
Top 10 Trends Shaping Asset Management in 2025
As the hotel sector moves into the mainstream as an asset class, many investors are entering it for the first time. It is important to offer advice tailored not to the sector, but to the hotel segment they are investing into.
By Alex Sogno, CEO, Global Asset Solutions
The Future of Hospitality: Harnessing Technology to Empower Human Connection
As technology evolves, so do the demands of our industry and workforce. Yet, in hospitality, technology’s role should be simple: it must empower people, not replace them. Our industry revolves around human connections, and while automation can streamline operations, it’s the personal touch that brings guests back and drives team engagement. In a recent conversation with Rob Smith, CEO of Stonebridge Companies, we explored the balance between digital innovation and human interaction—a conversation that feels more relevant than ever as labor challenges and shifting guest expectations reshape hospitality.
By Moneesh Arora, Chief Executive Officer, Unifocus
Clear Skies Ahead: Optimistic Forecast for Hotel Investments in 2025
Blue skies and tailwinds – a pilot's wish for optimal flying conditions – perfectly captures the emerging outlook for hotel investments as we enter 2025. While commercial real estate has navigated through choppy conditions amid economic shifts and interest rate headwinds, the horizon ahead shows promising signs of clearing.
By Bill Grice, Head of Hotels - Americas, CBRE, CBRE Hotels
Ensuring Your Deal Closes: Three Areas to Focus On
Both buyers and sellers want a seamless hotel transaction closing, but a variety of potential pitfalls can slow a deal’s closing. Below, we review three key areas of a hotel sale that may present obstacles: financing, PIP costs, and property insurance premiums. We also provide recommendations that help you to anticipate and prevent issues.
By Eric Guerrero, Senior Managing Director and a Partner, HVS
Talking Hotel Cap Rates
This month, I am using an article authored by Erich Baum, Senior Vice President at HVS. Working at HVS for over 30 years, Erich has performed appraisal and consulting assignments in 47 of the 50 states, as well as Mexico and the Caribbean. Because of his range of experience, Erich focuses on the most complex jobs, including litigation-related assignments and atypical consulting work. In short, Erich is one of the brightest hotel consultants and appraisers I know, and this article demonstrates his superior knowledge and expertise.
By Stephen Rushmore, Hotel Valuation Expert and Founder of HVS, Hotel Valuation Software
Hotel Assets: The Dark Horse in Real Estate Investing
The real estate market is constantly evolving, influenced by economic factors and societal trends. Over the years, different real estate sectors have taken turns in the spotlight, with office and multi-family properties often seen as safe and stable investments. However, recent data suggests a changing landscape, with hotel assets emerging as a more attractive investment option. In this article, we will explore how real estate investment in the lodging sector is becoming more appealing.
HVS Takeaways – The Lodging Conference
Last week marked another successful and highly attended Lodging Conference. HVS was proud to sponsor and speak at the event. Our recap on the conference sentiment follows.
By Luigi Major and Zabada Abouelhana
Bridging the gap between residential and hospitality
Traditional hotel owners and operators have been morphing to enter the somewhat newer space between residential and hospitality. This can take shape in many forms including branded residential, co-living and senior living.
By Vedika Jhunjhnuwala, Senior Consultant, Horwath HTL UK, Horwath
How Technology is Modernizing Hospitality Operations
The hospitality industry has changed a lot over the years. Labor shortages, rising guest expectations, and tightening budgets are the new norm. We’ve spent a lot of time thinking about how technology can help solve these challenges. And while technology won’t fix everything, it can go a long way in making operations run smoother and guests happier.
By Moneesh Arora, Chief Executive Officer, Unifocus