“While developers can explore other countries with lower tariffs, the reality is it’s affecting projects already underway,” said Bhakta, speaking to Asian Hospitality on the sidelines of AAHOA’s 2025 Convention and Trade Show.
With global supply chains in flux, Bhakta said the uncertainty is being priced into valuations.
“It’s a moving target—one day a tariff is on, the next it’s off,” he said. “But right now, there’s no question it’s having an impact.”
Bhakta, who co-founded the firm nearly a decade ago with Principal and Managing Broker Dinesh Rama, said NewGen’s growth reflects the reach and agility today’s market demands.
He called extended-stay hotels “the hottest segment in the market,” citing their operational efficiency and leaner staffing requirements.
“You can rent rooms at similar rates as traditional hotels, but with lower overhead,” he said. “You don’t have to offer full amenities, and that’s a cost saver.”
Extended-stay assets are among the most in-demand listings at NewGen.
“Buyers light up when they hear it’s extended stay. There’s always a line of interest,” Bhakta said.
On broader market conditions, Bhakta acknowledged the recent dip in deal volume.
“In 2022, we saw close to 4,700 transactions. That dropped to 2,500 in 2023, and we’re trending toward 1,700 this year,” he said. “Even a PIP that might have cost $500,000 earlier in the year could now be $650,000 or more. That’s real money coming out of buyers’ pockets, so naturally it affects pricing. It’s not just operational—it’s changing how deals are underwritten.”
Despite that, Bhakta believes market fundamentals remain strong.
“There’s still a lot of capital on the sidelines. Investors are getting antsy—they’re ready to deploy capital,” he said.
The biggest challenge, he added, is the ongoing disconnect between buyer and seller expectations.
“The bid-ask gap has been wide, but sellers are starting to adjust,” Bhakta said. “Replacement costs are so high, it just doesn’t pencil to build new, especially in midscale and economy segments.”
NewGen specializes in hospitality and lodging assets, from bed-and-breakfasts in small markets like Sedona to high-rise urban properties under major flags.
“Dinesh has been in the business for more than 30 years,” Bhakta said. “We started with just a few agents, and now we have 29 agents nationwide, 26 broker licenses, and we’ve closed deals in 44 states. We’ve worked hard to remove boundaries for our agents—brand or location doesn’t matter.”
“We’re very vertical,” he said. “Our team is diverse, and we’ve built a reputation for not being like other brokerage houses. We stay current with technology and modern marketing strategies.”
NewGen remains a strong supporter of AAHOACON, which Bhakta called “the best place to connect buyers and sellers.”
“It’s where the most ownership comes together in one place,” he said. “My message to our agents is simple: If you’re not here, you’re not serious about selling hotels.”
The return of major brands to the event—such as Marriott and Hilton—signals renewed momentum.
“That’s a solid indication we’re headed in the right direction,” Bhakta said.
