David Eisen

📌 The AAHOA Convention, a significant event for Asian American hotel owners who control over 60% of U.S. hotels, highlights the community's influence. Facing post-pandemic challenges, including high interest rates, scarce debt, and costly construction, hoteliers and brands like Marriott opt for conversions over new builds. Wyndham's select-service hotels show resilience with a strong pipeline. Concerns over tariffs affecting costs and travel demand echo the unease of 9/11's impact on travel, but with hope for a quicker recovery. Sonesta plans to sell 114 hotels, potentially generating $1 billion. Oyo's Ritesh Agarwal, now overseeing G6 Hospitality, emphasizes the significance of cash flow in the industry. Extended Stay America outperforms the sector, while Hilton focuses on brand growth. Advocacy remains crucial, with proposed legislation like the "LIONs Act" and "Main Street Tax Certainty Act" aiming to support small business finances and tax benefits.

🏦 At the Hunter Hotel Investment Conference, predictions for 2025 include possible growth or reckoning for hotel investments. Blackstone and Brookfield, with a combined $2 trillion in assets under management (AUM), are selling more than buying, with Blackstone offloading $2 billion in assets last year including the Motel 6 chain to India's Oyo and considering selling Spain-based Hotel Investment Partners. Brookfield sold high-profile properties like The Diplomat Beach Resort and Conrad Seoul. Blackstone's recent purchases focused on Japan and Greece, buying three hotels in Japan and the Grand Hyatt Athens in December 2024. Interest rate expectations affected Blackstone, with only three cuts compared to the seven they anticipated. Brookfield looked at $6 billion in assets last year, acquiring $800 million, with an aim to be a net buyer in 2025. Noble Investment Group plans to sell $1 billion and buy $2 billion in assets despite a "wonky" investment environment. Hilton CFO Kevin Jacobs discussed efforts to drive cost savings to owners and franchisees and highlighted Hilton's technology revamp with its Property Engagement Platform and connected room interfaces. Labor efficiency remains a focus, with AI's role in reducing costs and improving operations being explored, while consumer confidence issues loom over the industry.

📌 Global hotel investment volume reached $57.4 billion in 2024, up 7% from 2023 but still the third-lowest since 2012. At the Hunter Hotel Investment Conference in Atlanta, industry leaders expressed concerns about economic uncertainty and the impact of higher interest rates on asset values and transactions. Hotel asset values have decreased by roughly 20% due to the challenging last two years. A CNBC Fed survey forecasts a GDP decline to 1.7% in 2025 from 2.4%, impacting travel demand. Luxury spending has dropped by 5% in February, signaling potential struggles for luxury hotels. Despite difficulties, opportunities for buyers exist in market dynamics and capitulation from institutions like Blackstone and Brookfield. Hotel development is sluggish due to high building costs and borrowing rates, leading to a preference for maintaining current assets.

🛏 Dometic Group from Solna, Sweden, known for minibars, offers over 30 models including silent-operation units. Vingcard in Plano, Texas, part of Assa Abloy Group, provides eight types of electronic locking systems, including smartphone-enabled access. Philips Professional Display Solutions in Milpitas, California, features MediaSuite for guest entertainment without additional equipment. SuitePad from Berlin allows 70% of hotel guests preferring app communication to personalize their stay via in-room tablets. Hotel Technologies in Rahway, New Jersey, advances the multi-functional hotel alarm clock with charging stations and Bluetooth speakers.