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U.S. HOTEL INVESTORS are growing more optimistic, with 94 percent planning to maintain or increase investments this year, up from 85 percent last year, according to a recent CBRE study. Key drivers include improved return expectations, distressed opportunities and favorable pricing. CBRE's U.S. Hotels Investor Intentions Survey shows only 6 percent of investors plan to reduce allocations, down from 16 percent last year, amid slowing RevPAR growth and cost concerns. "We anticipate an acceleration in hotel investment activity in 2025, as investors are eager to seize new buying opportunities amid increasingly favorable economic conditions," said Bill Grice, CBRE Hotels' president of the Americas. "With ample liquidity accessible through the debt capital markets, investors are targeting assets that offer substantial in-place cash flows and are actively seeking value-add properties that can be repositioned to yield above-market returns."

SELECT-SERVICE AND extended-stay hotels remain attractive investments due to their "durable returns in a volatile market," according to a recent JLL study. The sector's RevPAR hit a record $78 in 2024, 14 percent above 2019 levels, with demand up 232,000 room nights year-over-year, nearing full recovery. JLL's U.S. Select-Service and Extended-Stay Hotel Outlook 2025 highlights the sector's lean operations and higher profit margins compared to full-service hotels, making it a strong investment for stable returns despite economic challenges.

MARK HOPLAMAZIAN, PRESIDENT and CEO of Hyatt Hotels Corp., will join Greg Friedman, managing principal and CEO of Peachtree Group, for a fireside chat at the Hunter Hotel Investment Conference on March 19. Hunter introduced this format last year with Anthony Capuano, CEO of Marriott International, as the featured guest. In "A Conversation with Mark Hoplamazian," he will share insights on his hospitality career, leadership approach, Hyatt's market position, company outlook and industry developments, Hunter said in a statement. U.S. extended-stay hotels finished 2024 strong after a slow start, with supply, demand and room revenue growth outpacing the industry, while ADR and RevPAR remained positive but gained momentum later in the year, according to The Highland Group.​ "At Hyatt, business is personal-relationships, trust, and a deep understanding of our guests, customers, and owners are at the heart of everything we do," said Hoplamazian. "In today's competitive landscape, hotel performance is driven by the human connections that shape our industry. That's why we collaborate closely with owners and operators like Peachtree Group to create long-term value for their investments."

THE UPWARD MOVEMENT of ADR for U.S. hotels lifted the forecast for the market by STR and Tourism Economics. The travel research firms released the new forecast during the opening sessions of the Americas Lodging Investment Summit in Los Angeles on Monday. The recovery timeline laid out in the new forecast remains mostly the same as the previous forecast released in November, with ADR will near full recovery this year. RevPAR is anticipated to exceed 2019 levels in 2023, but when adjusted for inflation ADR and RevPAR are not projected to reach full recovery until after 2025. Occupancy is projected to surpass 2019 levels in 2023. "The industry recaptured 83 percent of pre-pandemic RevPAR levels in 2021, and momentum is expected to pick up after a slow start to this year," said Carter Wilson, STR's senior vice president of consulting. "With so much of that RevPAR recovery being led by leisure-driven ADR, however, it is important to keep an eye on the real versus the nominal. Terms of recovery are not playing out evenly across the board, and many hoteliers have had to raise rates to minimize the bottom-line hit from labor and supply shortages. We are anticipating inflation to remain higher throughout the first half of the year with a gradual leveling off during the third and fourth quarters. If that happens, and we avoid major setbacks with the pandemic, this year will certainly be one to watch with demand and occupancy also shaping up to hit significant levels during the second half."