U.S. Select-Service and Extended-Stay Hotel Outlook 2025


U.S. Select-Service and Extended-Stay Hotel Outlook 2025
Entering 2025 and beyond, select-service & extended-stay hotels are poised to remain a focal point for investors seeking durable returns in a volatile market Key Takeaways: Select-service hotels have demonstrated robust growth and resilience, with record-breaking RevPAR, near-full demand recovery, superior operational efficiency compared to full-service hotels, and inflation-resistant profitability. The proliferation of brands and strategic moves such as M&A and conversions indicate a dynamic and competitive landscape, with major hotel groups adapting to market conditions and seeking net unit growth. The sector`s consistently higher yields and lower yield volatility compared to other main property sectors continue to attract diverse investors, from owner-operators to HNWIs and private equity firms. While portfolio transactions have seen a temporary decline due to high interest rates, this trend is expected to reverse given recent reductions in rates and credit spreads. The lending landscape remains favorable, with a growing diversity of lenders showing confidence in the sector driven by a smaller cheque size and debt market clarity.... ...more RSK: This is good news for Wisconsin Dells and other local vacation destinations in Wisconsin. Ken Notes: full report at the link -- worth reading...
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Select-service hotels have demonstrated robust growth and resilience, with record-breaking RevPAR, near-full demand recovery, superior operational efficiency compared to full-service hotels, and inflation-resistant profitability.
The proliferation of brands and strategic moves such as M&A and conversions indicate a dynamic and competitive landscape, with major hotel groups adapting to market conditions and seeking net unit growth.
The sector`s consistently higher yields and lower yield volatility compared to other main property sectors continue to attract diverse investors, from owner-operators to HNWIs and private equity firms.
While portfolio transactions have seen a temporary decline due to high interest rates, this trend is expected to reverse given recent reductions in rates and credit spreads.
The lending landscape remains favorable, with a growing diversity of lenders showing confidence in the sector driven by a smaller cheque size and debt market clarity....