As featured in “Hotel Dive”
Noelle Mateer (Editor) | Jenna Walters (Reporter), Hotel Dive, 06 January, 2025
In a recent feature with Hotel Dive, Greg Perry, RREAF Holdings’ Vice President of Hospitality Investment, offered insights into the evolving dynamics of the hospitality industry in 2025. Explore Greg’s forward-looking predictions and perspectives in the article below.
Rate cuts in the fourth quarter of 2024 have “been really positive so far” for hotel investment, Greg Perry, vice president of hospitality investments at RREAF Holdings, told Hotel Dive. Additional rate cuts are anticipated in 2025, which could spur future hotel investment, Global Head of JLL Hotels Research Zach Demuth told Hotel Dive.
Additionally, more lenders are becoming excited about the state of the market, so “accessible and more fairly priced capital is on the near-term horizon,” Perry said.
Strong group travel will also drive hotel investment in 2025, according to Perry.
“If there’s a story for 2025, [it’s that] increasing group demand will be a key driver of our business [this] year,” Perry said.
Perry agreed that urban markets will see strong investor demand this year, but noted that secondary suburban markets “are going to be the real winners going forward,” as the extended stay category remains the “darling” of the industry in 2025.
Hotel investors will gravitate toward newer hotels under Marriott, Hilton and Hyatt brands, Perry noted. “There’s still this flight to quality that we saw starting in the pandemic era,” he said.
The “institutional quality of new brands” will “attract the next big group of capital to come into the industry,” Perry added, noting that hotels in upper-tier segments will be particularly desirable.
A still-high inflationary environment this year won’t halt transaction activity for the hotel industry, Perry forecasted. “Being in an industry like hotels, which have dynamic daily pricing that can move with inflation, can only help portfolios.”
To read the full article that explores all hospitality trends for 2025, please click here.
