Where to Invest: A Pragmatic View of Hospitality in 2026
🏨 In 2026, the hospitality industry might experience a shift as transaction volumes could remain limited unless sellers adjust cap rate expectations. Recent interest rates have moved off their peaks, with debt constants remaining high at 7%-9%. Viable investment strategies include developing hotels with RevPAR above $250, repositioning neglected hotels, or reinvesting in existing assets. Reinvestment offers the highest probability of success due to market constraints and growing demand, despite its less glamorous nature compared to other strategies.
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