Industry leaders talk about headwinds facing the economy
The theme of this year's Hunter Hotel Investment Conference was “Elevate your game,” said Lee Hunter, conference chairman and COO of sponsor Hunter Hotel Advisors, in his opening comments Tuesday at the Marriott Marquis Hotel in downtown Atlanta.
Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently assistant editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers.
Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
THE HUNTER HOTEL Investment Conference opened its 2025 meeting this week with news that it will move to a new location next year. Also, speakers at the conference gave their views on the current turbulence buffeting the U.S. economy.
The theme of this year's conference was “Elevate your game,” said Lee Hunter, conference chairman and COO of sponsor Hunter Hotel Advisors, in his opening comments Tuesday at the Marriott Marquis Hotel in downtown Atlanta. More that 2,200 people attended the conference.
“As leaders, we know in order to be successful, you have to rise above ordinary,” Hunter said. “Over the next few days, we're going to learn talk about pushing boundaries, eliminating and overcoming obstacles, and learning how to elevate not just our businesses and our teams, but our relationships and ourselves as well.”
Moving on
Opened in 2024, the Signia by Hilton Atlanta near Mercedes Benz Stadium, Georgia World Congress Center and State Farm Arena, will begin hosting the Hunter Hotel Conference next year.
The Marquis had hosted the conference for the past 17 of its 36 years, HHA said in a statement. Beginning next year, however, the Signia by Hilton Atlanta near Mercedes Benz Stadium will be its new home.
“We are deeply grateful to the Atlanta Marriott Marquis, which has been an exceptional host and partner, offering a welcoming and dynamic setting for our event for nearly 20 years,” Hunter said. “Looking ahead, our move to the Signia by Hilton Atlanta allows us to grow alongside our attendees while preserving the unique, close-knit atmosphere that makes our event so special.”
Opened in 2024, the Signia also is near the Georgia World Congress Center and State Farm Arena. The $5 billion mixed-use project known as Centennial Yards in the former Gulch area is being developed nearby.
"We are delighted to welcome the Hunter Hotel Investment Conference to the beautiful Signia by Hilton Atlanta beginning next year," said Danny Hughes, president, Americas, Hilton. "As an economic catalyst and a beacon of unparalleled hospitality in the heart of downtown Atlanta, Signia is the ideal venue for HUNTER. We are honored to be the new home for this important conference that is at the center of our industry’s growth and development each year.”
Turbulent times ahead for the economy
Speaking on a panel at the Hunter Hotel Conference are, from left, Vision Hospitality President and CEO Mitch Patel; Greg Friedman, managing principal and CEO of Peachtree Group; and Robert Webster, vice chairman at CBRE.
During the Market Overview: Financial Analysis and Forecast panel discussion at the beginning of the conference, led by Vision Hospitality President and CEO Mitch Patel, panel members discussed the nation’s current economic forecast. The impact of recent events, such as the Trump administration’s on again-off again tariffs on Canada and Mexico as well as cuts to the federal government workforce, factored into the conversation.
Teague Hunter, HHA president and CEO and brother of Lee Hunter, acknowledged that the industry is facing some headwinds.
“I think we've got some chopping times ahead, for obvious reasons,” Teague Hunter said. “There's been tons of government spend and that's about to evaporate, and that's going to have impact and pain everywhere. Part of the reason I think is that the top is so much and printed a ton of money, that money fell into the hands of capital owners, and it didn't quite triple that, so now you're going to evaporate that. There's clearly going to be some pain going ahead. Hopefully it's all for the good. Hopefully it's a long-term benefit.”
At the moment, in terms of rates, things are not good, he said.
“In the economy and the mid-market level, we have been in a recession for two years now. So that's happened. Values are off 20 percent, maybe even more. In some cases, it's still market to market. But values are off. It's just when rates go from 4 percent to 9 percent there's a problem.”
Greg Friedman, managing principal and CEO of Peachtree Group, discussed the possibility of a recession as well.
“I think it's sort of an interesting environment. You look at the new administration, I think that's probably the toughest part, is all the new policies, what the new administration is trying to accomplish with tariffs,” said Greg Friedman. “There are factors that could potentially drive us into an economic recession, which isn't necessarily a bad thing, because it could help bring rates down, but some of that challenge is the volatility is going to make 2025 really tough to operate in this type of environment.”
Friedman said he expects to see “some business pull back” for hotels and that the environment will remain challenging for a while.
“On the flip side, at some point, I think you're going to see the transaction market opened up for us to be able to go buy assets,” Friedman said. “That's what gets us excited, given the fact that everyone's dealing with this higher interest rates that need to renovate assets, and I think that's going to create a buying opportunity for us.”
Vision held its Red Sand Project to combat human trafficking in Chattanooga, Tennessee.
It fights trafficking through partnerships, staff training and philanthropic support.
Tennessee reported 213 human trafficking cases in 2024, involving 446 victims.
VISION HOSPITALITY GROUP held its fourth annual Red Sand Project with WillowBend Farms to combat human trafficking in Chattanooga, Tennessee. The event brought together organizations working to combat human trafficking, including the Family Justice Center for Hamilton County and the Hamilton County Health Department.
“We were honored to stand with our partners and our community to bring attention to this issue,” Patel said. “Together, through awareness and action, we are working toward a future where every individual is safe, seen and supported.”
The Red Sand Project is a symbolic initiative to raise awareness and promote action on human trafficking, the statement said. Participants poured red sand into sidewalk cracks to represent victims who have fallen through the cracks of society. This year’s event came as the Chattanooga community reported progress in prevention and survivor restoration over the past year.
“The Red Sand Project reminds us that human trafficking continues to be a pressing public health issue and a devastating reality in every state,” said Jenelle Hawkins, Vision's director of operation excellence. “As members of the hotel industry, we understand our unique position to help identify and prevent trafficking. We are proud to be part of a community that is not only raising awareness but also driving real solutions. As we mark our fourth year, our commitment is stronger than ever.”
According to the Tennessee Bureau of Investigation, there were 213 reported human trafficking cases in Tennessee in 2024, involving 446 victims. Events like the Red Sand Project raise awareness, promote education and encourage community action.
Vision Hospitality Group combats trafficking through community partnerships, staff training and philanthropic support. In 2024, it donated $100,000 to the AHLA Foundation’s No Room for Trafficking Survivor Fund, which provides housing and job placement services to survivors nationwide.
If you know someone who needs help escaping trafficking, call the Tennessee Human Trafficking Hotline at 1-855-558-6484. To report a suspected victim, call the National Human Trafficking Hotline at 1-888-373-7888 or text 233722.
In June, Vision broke ground on a 150-key Hilton dual-brand in Lookout Valley, Chattanooga, Tennessee.
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Choice Hotels International reported Q2 net income of $81.7 million.
Domestic RevPAR fell 2.9 percent due to macroeconomic conditions.
Extended-stay portfolio rose 10.5 percent YoY, with a domestic pipeline of 43,000 rooms.
CHOICE HOTELS INTERNATIONAL reported second-quarter net income of $81.7 million, down from $87.1 million a year earlier. Its forecast for the year remained positive, but was downgraded some to account for changes in macroeconomic conditions.
The company’s global pipeline exceeded 93,000 rooms, including nearly 77,000 in the U.S. Its global system size grew 2.1 percent, including 3 percent growth in the upscale, extended-stay and midscale segments, Choice said in a statement.
“Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy,” said Patrick Pacious, president and CEO. “We are especially pleased with our strong international performance, where we have achieved significant growth and accelerated global expansion through a recent strategic acquisition, the signing of key partnerships, and entry into new markets. With more diversified growth avenues, enhanced product quality and value proposition driving stronger customer engagement and a leading position in the cycle-resilient extended-stay segment, we remain well-positioned to deliver long-term returns for all our stakeholders.”
Domestic RevPAR declined 2.9 percent, reflecting macroeconomic conditions and a difficult comparison with 2024 due to the timing of Easter and eclipse-related travel, the statement said. Excluding those effects, RevPAR fell approximately 1.6 percent. Meanwhile, the domestic extended-stay portfolio outperformed the broader lodging industry by 40 basis points in RevPAR, while the economy transient portfolio exceeded its chain scale by 320 basis points.
Adjusted EBITDA rose 2 percent to $165 million, or $167 million excluding a $2 million operating guarantee related to the Radisson Hotels Americas acquisition. Adjusted diluted EPS increased 4 percent to $1.92, the statement said.
Expansion and development
The domestic extended-stay portfolio grew 10.5 percent year over year, with a pipeline of nearly 43,000 rooms as of June 30, Choice said. The combined domestic upscale, extended-stay and midscale portfolio grew 2.3 percent. WoodSpring Suites expanded 9.7 percent to nearly 33,000 rooms and ranked first in guest satisfaction among economy extended-stay brands in the J.D. Power 2025 study. The domestic economy transient pipeline increased 8 percent to more than 1,700 rooms.
Choice acquired the remaining 50 percent interest in Choice Hotels Canada for approximately $112 million in July, funded through cash and credit. The deal expanded its Canadian brand portfolio from eight to 22 and added 327 properties and more than 26,000 rooms. The business is expected to contribute approximately $18 million in EBITDA in 2025.
International activity included a renewed master franchise agreement with Atlantica Hospitality International in Brazil for more than 10,000 rooms; a direct franchise deal with Zenitude Hotel-Residences in France, which nearly tripled room count and two agreements with SSAW Hotels & Resorts in China. These include a 9,500-room distribution deal for 2025 and a master franchise agreement projected to add 10,000 rooms over five years.
Global net rooms for upscale brands increased 14.7 percent year over year, the statement said. The pipeline for these brands rose 7 percent since March 31 to nearly 29,000 rooms.
2025 outlook
Choice revised its RevPAR outlook to reflect more moderate domestic expectations due to macroeconomic conditions, the statement said. The adjusted EBITDA forecast includes a $6 million contribution from the Choice Hotels Canada acquisition for the remainder of 2025. It also reflects the $2 million Radisson-related operating guarantee payment incurred in the second quarter.
Net income guidance was lowered to a range of $261 million to $276 million, down from $275 million to $290 million. Adjusted net income remains at $324 million to $339 million.
Domestic RevPAR growth was revised to between negative 3 percent and flat, compared to the earlier range of negative 1 percent to positive 1 percent. The global net system rooms growth projection remains at approximately 1 percent.
In May, Choice reported 2.3 percent year-over-year growth in domestic RevPAR for the first quarter.
G6 Hospitality and Galaxy Hotels Group are expanding Motel 6 and Studio 6 in the U.S.
Galaxy said G6 brands outperform others in guest satisfaction and value.
One Galaxy hotel generates $8–10M annually; the full G6 portfolio is expected to reach $50M.
G6 HOSPITALITY AND Galaxy Hotels Group are now working to expand the Motel 6 and Studio 6 footprint in the U.S. About 10 Galaxy-managed hotels, totaling more than 1,300 rooms, will operate under the G6 brands, with more to follow.
G6 brands consistently outperform others in guest satisfaction and value, said Galaxy, which rejoined the G6 network after a short break.
“This partnership marks a new chapter in our mission to deliver modern, value-driven hospitality, as we now proudly rejoin G6 Hospitality," said Carlos Cuevas, Galaxy Hotels' COO. "Having previously moved from Choice Group/Park Inn by Radisson, we’ve closely compared the performance of various franchises. Our experience and data show that G6 brands consistently outperform others in guest satisfaction and value. This is why we’re back."
Recent additions include Studio 6 Suites Las Vegas with 308 rooms, Motel 6 Las Vegas – I-15 Stadium with 139 rooms and Motel 6 Las Vegas – Boulder Highway with 160 rooms, the companies said. Studio 6 Suites Las Vegas on the Strip, with more than 300 rooms, will be one of the largest Studio 6 hotels in the U.S., while Motel 6 Las Vegas is also near the Strip and Allegiant Stadium. The portfolio also includes Motel 6 hotels in Modesto, San Jose and Santa Rosa, California and Lakewood, Fort Collins, Thornton and Colorado Springs, Colorado.
Texas-based Galaxy Hotels Group, founded in 1999 and led by CEO Jagmohan “Jag” Dhillon, operates more than 41 hotels in the U.S. One Galaxy hotel in the G6 network generates $8 to 10 million in annual revenue. The full G6 portfolio is expected to reach about $50 million.
OYO CEO Ritesh Agarwal is chair of G6 Hospitality and Sonal Sinha is its CEO. OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans 150 more by year-end.
Choice launched two campaigns to boost bookings across its four extended-stay brands.
Based on guest feedback, the campaigns focus on efficiency, cleanliness, value and flexibility.
They will run through 2026 across social media, Connected TV, digital display and online video.
CHOICE HOTELS INTERNATIONAL launched two marketing campaigns to increase brand awareness and bookings across its four extended-stay brands. The "Stay in Your Rhythm" campaign promotes all four brands by showing how guests can maintain daily routines, while "The WoodSpring Way" highlights the service WoodSpring Suites staff provide.
The company has more than 550 extended-stay locations open, 51 under construction and more than 350 in the pipeline under Everhome Suites, MainStay Suites, Suburban Studios and WoodSpring Suites, Choice said in a statement.
"As leaders in the extended stay segment, Choice Hotels has long understood that this category is unlike any other in the hospitality industry, defined by distinct guest expectations that we continuously strive to exceed," said Noha Abdalla, Choice’s chief marketing officer. "These first-of-their-kind campaigns reflect our deep understanding of why people stay longer — from work assignments and relocations to life transitions and personal journeys. No matter the reason, we know our guests aren't looking to escape their routines; they're looking to maintain them. That's why we take pride in our unique position to offer what matters most: consistency, comfort and connection."
Both campaigns are based on research and guest feedback showing travelers prioritize efficiency, cleanliness, value and flexibility, the statement said. They will run through the rest of the year and into 2026 across paid social media, Connected TV, digital display and online video.
The "Stay in Your Rhythm" campaign shows how Choice's extended-stay brands support routines with in-room kitchens, laundry, fitness centers and pet-friendly options, Choice said. It focuses on daily habits like making coffee, cooking, walking the dog, or exercising.
"The WoodSpring Way" highlights how property teams support guests by providing home-like conveniences, the company said. General managers in Chicago, Denver, Atlanta and Orlando are featured for creating a consistent guest experience and welcoming all guests, including pets.
"We've designed our extended stay properties to ensure we provide guests with everything they need when circumstances take them away from home for weeks at a time," said Matt McElhare, Choice's vice president for extended stay brands. "Through the launch of our campaigns, we aim to educate the growing population of extended stay travelers on how our brands offer the best value in the industry, while also highlighting the culture of our flagship brand, WoodSpring Suites, which has consistently set the standard for guest satisfaction in the segment. We're especially thankful to our owners and management company teams who help build and sustain this culture on property, consistently delivering a great guest experience."
U.S. hotels increased background checks by 36 percent in early 2025.
The trend follows President Trump’s immigration policies impacting seasonal labor.
Immigrants making up a third of the travel workforce.
U.S. HOTEL HIRING managers requested 36 percent more background checks in the first half of 2025 compared with the same period last year, according to Hireology. The move follows President Donald Trump’s immigration crackdown and proposed visa fee hikes affecting seasonal labor.
Trump sought to end temporary legal status for hundreds of thousands of migrants in the U.S.and vowed to deport millions of undocumented people in the country, Reuters reported. Hireology said in a blog post that background checks were a cornerstone of any effective hiring strategy.
"They ensure that candidates meet the qualifications for the role, protect your organization from potential risks and help you build a safe, compliant, and high-performing workforce,” the hiring platform said. “Negligent hiring can have serious consequences, from legal liabilities to reputational damage.”
At least one-third of workers employed or supported by the U.S. travel industry are immigrants, according to the U.S. Travel Association. Meanwhile, hotels directly employed more than 2.15 million people in 2024, according to the American Hotel and Lodging Association.
Total hires across 1,000 hotels rose by 22 percent, reaching more than 8,000 workers, Reuters reported, citing Hireology report.
Increases in the most in-demand roles such as front desk associates, housekeepers and cooks were flat or grew slightly year-over-year. About 34 percent of housekeepers and 24 percent of cooks are foreign-born, according to 2023 data from the U.S. Census Bureau and Tourism Economics.
A $250 Visa Integrity Fee in Trump’s Big Beautiful Bill is drawing criticism from groups that rely on J-1 and other seasonal worker visas, who warn the sometimes-refundable charge could shrink the summer workforce supporting U.S. beach towns and resorts.