10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
    • CSR and Sustainability
    • Events
    • Hotel Openings
    • Hotel Operations
    • Human Resources
    • Innovation
    • Market Trends
    • Marketing
    • Mergers & Acquisitions
    • Regulatory and Legal Affairs
    • Revenue Management
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
    • 🇫🇷 French
    • 🇩🇪 German
    • 🇮🇹 Italian
    • 🇪🇸 Spain
  • 📰 Columns
  • About us
10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
    • CSR and Sustainability
    • Events
    • Hotel Openings
    • Hotel Operations
    • Human Resources
    • Innovation
    • Market Trends
    • Marketing
    • Mergers & Acquisitions
    • Regulatory and Legal Affairs
    • Revenue Management
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
    • 🇫🇷 French
    • 🇩🇪 German
    • 🇮🇹 Italian
    • 🇪🇸 Spain
  • 📰 Columns
  • About us

7 hotel industry trends to keep on the radar for 2025 

  • Guest Contributor
  • 13 March 2025
  • 4 minute read
Total
0
Shares
0
0
0

This article was written by HotelsMag. Click here to read the original article

image

The hotel industry is poised for significant shifts in 2025, with private- equity (PE) firms continuing to play a prominent role in hotel asset acquisitions. As economic conditions evolve, emerging trends in experiential travel, asset positioning and new investor demographics will shape the market. Here are seven key trends to keep on the radar as the year progresses. 

  1. Private Equity’s Continued Prominence in Hotel Asset Acquisitions

Private equity firms remain the largest segment of buyers in the hotel sector, leveraging their vast institutional dry powder and access to debt financing to optimize long-term returns. These firms act as value-added investors, strategically acquiring distressed assets and repositioning them for improved performance with an eye to strong realizable returns upon exit. PE groups have been known to implement defensive strategies such as opportunistically acquiring discounted debt to secure assets at optimal valuations. Rapid decision-making capabilities and experience in navigating market cycles also continue to make PE firms attractive buyers. 

PE firms utilize sophisticated asset-management expertise to drive operational efficiencies and financial structuring. Their investment horizon typically ranges from six to 10 years, ensuring disciplined performance metrics. Institutional investors favor hospitality as part of diversified portfolios, reinforcing strong PE sponsors being well-positioned in the sector. 

Meliá Hotels International expands its presence in Lanzarote
Trending
Meliá Hotels International expands its presence in Lanzarote

  1. Experiential Consumption and a Shift Toward Group Travel

While experiential travel remains a post-pandemic priority, the shift from leisure-based discretionary spending toward structured group travel is becoming more pronounced. Consumers are pivoting toward corporate events, destination weddings and group retreats and hotels must adapt in their offerings to remain competitive. Some of the strategies to achieve this include flexible event spaces with cutting-edge technology, personalized experiences tailored to group needs and strong sales and service teams focused on group travel. 

  1. Strength in Urban Markets Creating Appeal to Business and Group Travel

Large cities are experiencing robust hotel performance, particularly in business and group travel segments. Uniquely positioned assets with distinctive characteristics are particularly attractive to investors, such as historic landmarks, retro-style urban hotels and niche-focused hotels catering to wellness, adventure or cultural experiences. 

  1. Strong Performance of Non-Urban Destination Resorts

Hotels outside major cities are outperforming traditional urban-centric expectations as boutique resorts and high-end retreats in scenic locations are drawing significant demand. Examples include luxury farm resorts for premium retreats, ultra-luxury desert retreats catering to affluent travelers and experiential coastline resorts with the ability to accommodate group bookings. 

  1. Factors Beyond High Interest Rates Impacting Deal Volumes

While high interest rates continue to be a primary driver influencing deal volumes and cap rates, other factors are playing a role in slowing transactions. Key headwinds include economic uncertainty and potential recession concerns; disparities in buyer and seller price expectations; deferred capex and required reinvestment to ensure competitive “look and feel” dynamics; and uncertainties about the long-term impact of remote work on business travel. 

However, there are potential catalysts on the horizon which could increase transactional activity: 

  • Easing of interest rates and improved financing conditions 
  • Increased economic clarity and investor confidence 
  • Resolution of remaining distressed asset backlogs from the pandemic 
  • Institutional investors seeking new hotel investment opportunities create a pent-up demand from fresh capital sources. 
  1. Growing Interest from Family Offices, High Net Worth Individuals and First-Time Buyers

A notable trend in 2025 is the rising participation of family offices, high-net-worth individuals (HNWIs) and first-time buyers in the hotel market. These groups offer distinct advantages in asset acquisition as they look for diversification of real-estate holdings, more stable income generation across economic cycles and the establishment of a long-term footprint in hospitality. 

These buyers may have distinct advantages over PE firms, making them an emerging trend worth observing. They rely less on high levels of debt leverage, making them more competitive in high-rate environments, and may also be less constrained by exit horizons, allowing them to invest with a longer-term perspective—holding assets as legacy investments or trophy properties and potentially paying a premium to secure winning bids in competitive sale processes. 

  1. Increased Interest in Select-Service and Luxury Hotel Segments

Investors are showing heightened interest in both select-service and luxury hotel asset segments due to each having their own distinct advantages in cash flow stability and investment potential. Select-service hotels appeal to investors driven by lean operating models, steady revenue streams, and manageable capital expenditure needs, along with their strong performance in suburban and secondary markets. These lower capital investment requirements make them attractive for first-time buyers. 

Luxury assets remain attractive to HNWIs and family offices seeking trophy properties as they command premium ADR and RevPAR. Investors view them as long-term appreciation assets with prestige value and the public exposure with buying marquee assets certainly positions these asset investors well for future deal flow. 

Monitoring these trends will be crucial for stakeholders navigating the evolving hospitality sector on value capture via strength in operational performance and success in potentially heightened transactional activity. 


Story contributed by Raoul Nowitz, senior managing director, SOLIC Capital Advisors.

Please click here to access the full original article.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
You should like too
View Post
  • TOP NEWS

Most spas don’t make money. | Oliver Corrin

  • Oliver Corrin
  • 1 August 2025
View Post
  • TOP NEWS

HOSPITALITY. The Product the Guest Doesn’t Pay For.

  • Mark Fancourt
  • 31 July 2025
View Post
  • TOP NEWS

Hidden in plain sight: How hotels can monetize non-room spaces and amenities

  • Guest Contributor
  • 29 July 2025
View Post
  • TOP NEWS

Influence Society Releases Q3 Edition of Societies – The Industry-Leading Quarterly Tracking Hospitality Trends

  • 10minhotel
  • 29 July 2025
View Post
  • TOP NEWS

The Three Imperatives: A New Playbook for Hotel Commercial Leaders

  • Anders Johansson
  • 29 July 2025
View Post
  • TOP NEWS

MEININGER: Accommodation Partner of ESN

  • Automatic
  • 25 July 2025
View Post
  • TOP NEWS

10 Hotel Technology Trends to Watch in 2025

  • Vanshikha Dhar
  • 24 July 2025
View Post
  • TOP NEWS

Hotel & Resort  Innovation Expo – 30th September & 1st October, ExCeL London

  • Sophie Weir
  • 24 July 2025
Sponsored Posts
  • The Future of Revenue Management Is Strategic Leadership – LodgIQ

    View Post
  • Influence Society Publishes Q2 Edition of Societies Quarterly for Visionary Hoteliers

    View Post
  • Case Study: Refinery Hotel Redefines Revenue Management with LodgIQ

    View Post
Last Posts
  • How Chris Gilbert is Humanizing Government Through the Power of Hospitality
    • 2 August 2025
  • OYO Taps IBS Software to Power Global Tech Overhaul
    • 2 August 2025
  • New on the Menu: Fried seafood and ceviche
    • 1 August 2025
  • Painless Parking: Towne Park’s Tech-Enabled Solutions Enhance Guest, Employee, and Owner Satisfaction 
    • 1 August 2025
  • OYO Announces Partnership With IBS Software
    • 1 August 2025
Sponsors
  • The Future of Revenue Management Is Strategic Leadership – LodgIQ
  • Influence Society Publishes Q2 Edition of Societies Quarterly for Visionary Hoteliers
  • Case Study: Refinery Hotel Redefines Revenue Management with LodgIQ
Contact informations

contact@10minutes.news

Advertise with us
Contact Marjolaine to learn more: marjolaine@wearepragmatik.com
Press release
pr@10minutes.news
10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
  • 📰 Columns
  • About us
Discover the best of international hotel news. Categorized, and sign-up to the newsletter

Input your search keywords and press Enter.