DIDN’T MAKE IT TO ALIS? SNOWED IN? HERE’S WHAT WE LEARNED:
- Macro uncertainties continue to plague outlook. These include immigration and labor availability, inbound tourism, closed convention centers, another government shutdown, reduced international inbound/ possible FIFA boycotts, continued/potential military operations in Central/South America, Iran, and Ukraine are difficult to plan around.
- A more active transaction market is likely as owners who were holding on in 2024 and 2025 (then in hoping for a better exit) may be ready to capitulate.
- SOFR rates continue to ease and a change in the Federal Reserve leadership may provide more interest rate cuts. Lenders and intermediaries reported robust activity for refinance transactions. Borrowers with low (<9%) trailing debt yields may be asked for a paydown.
- Independent hotels are best positioned to show up on searches with LLMs vs brands in the short term because LLMs favor unique, well reviewed, rich and detailed content. Independent hotels can outperform with their more content rich websites.
- hotelAVE was awarded ALIS Single Asset Transaction of the Year for its receiver sale of the Hilton San Francisco Union Square and Parc 55 San Francisco – a Hilton Hotel. hotelAVE has a full compliment of services to help lenders navigate troubled loans.
In 2026, maintaining margins in the face of slow top line growth is paramount. Asset management focus on sales and revenue management strategies, cost control and labor efficiency are key to maximizing flow to the bottom line.
Call and speak to our leadership team on how hotelAVE can help improve your property’s performance and value.
