1. Expansion of hotel-branded mixed-use residential projects – Luxury branded condo-and-hotel projects have become a major trend in popular real estate markets such as Miami and New York in recent years. We now see the trend expanding beyond the luxury sector to include different asset classes and other cities nationwide as developers look to seize on the popularity of both hospitality and non-hospitality-based brands to sell condos and help offset the costs of hotel and related construction.

  2. Tapping into consumer demand for experiences – Today's consumers generally are choosing to stay at a hotel or destination that caters to a specific interest or local experience, such as a food and wine festival, wellness retreat, live concert, or sporting event. For example, a hotel in a city that's hosting a Taylor Swift concert could do well by providing transportation to the event or creating a dedicated area where guests can access concert-related information.

  3. More transactions expected as lending environment stabilizes – While a predicted increase in transactions in 2024 is not setting the bar very high, many hotel owners likely will look to refinance debt as loans come due and a more stabilized interest rate environment brings clarity to borrowing costs and asset valuations. Higher interest rates and tighter lending standards could remain for the foreseeable future, however, suppressing the pace of new construction and potentially boosting hotel pricing growth. The smart money seems to be on borrowing early in the year (like now) while lender allocations are more accessible.

  4. Continued recovery in corporate and group travel – After a sluggish recovery from the pandemic in 2021 and 2022, convention hotels in popular U.S. travel destinations such as Las Vegas, Nashville, and Washington, D.C. have seen stronger occupancy and revenue in 2023 and likely will continue to grow in 2024. Business-centric urban markets, including Chicago, Miami, and Seattle, as well as smaller markets, including Indianapolis, Kansas City, and Detroit, also have continued upside potential.

  5. Flexible Spaces and Remote Work Support – With the rise of remote work, some hotels are adapting their properties to attract people looking for a "workation." This includes providing comfortable co-working spaces, high-speed internet, and other amenities and public spaces designed for guests who need to work remotely.

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