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 senior 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.”
More than 70 percent expect a RevPAR increase in Q4, according to HAMA survey.
Demand is the top concern, cited by 77.8 percent, up from 65 percent in spring.
Only 37 percent expect a U.S. recession in 2025, down from 49 percent earlier in the year.
MORE THAN 70 PERCENT of respondents to a Hospitality Asset Managers Association survey expect a 1 to 3 percent RevPAR increase in the fourth quarter. Demand is the top concern, cited by 77.8 percent of respondents, up from 65 percent in the spring survey.
HAMA’s “Fall 2025 Industry Outlook Survey” found that two-thirds of respondents are pursuing acquisitions, 80 percent plan renovations in the coming year and 57 percent are making or planning changes to brand affiliation or management strategies.
“With hopes high for a stronger fourth quarter, hotel asset managers continue to maintain an optimistic outlook,” said Chad Sorensen, HAMA president. “More than 70 percent of our members expect RevPAR to increase 1 to 3 percent and two-thirds are pursuing acquisitions. With 80 percent planning renovations in the coming year, we see an engaged community focused on performance.”
Conducted among 81 HAMA members, about one-third of the association, the survey reports expectations for revenue growth, property investments and acquisitions.
However, the top three most concerning issues were demand, ADR growth and tariffs, HAMA said.
RevPAR growth forecast
Looking into 2026, 72.8 percent expect 1 to 3 percent growth, 18.5 percent expect 4 to 6 percent, 7.4 percent anticipate flat results and 1.2 percent project a decline. Full-year RevPAR projections versus budget are more mixed: 49 percent expect 1 to 3 percent growth, 17 percent expect flat results, 12 percent expect 4 to 6 percent growth, 2 percent expect 7 percent or more and 19 percent expect declines.
Hotel asset managers note several market pressures, the report said. Other concerns include ADR growth at 51.9 percent, tariffs at 34.6 percent, wage increases at 33.3 percent and potential Federal Reserve rate changes at 32.1 percent. Management company performance at 25.9 percent, immigration and labor trends, union activity and insurance costs were also mentioned.
“The industry is at its highest level of concern around maintaining or increasing rates,” Sorensen said. “There’s pressure to build on the P&L going into 2026.”
Performance projections
Confidence in the broader economy has increased since spring, the survey found. Only 37 percent of respondents expect a U.S. recession in 2025, down from 49 percent earlier in the year.
When asked about properties exceeding gross operating profit forecasts, 59 percent of managers expect 0 to 25 percent of their hotels to surpass targets, 25 percent expect 26 to 50 percent, 10 percent expect 51 to 75 percent and 6 percent expect 76 to 100 percent. Additionally, 20 percent reported returning hotels to lenders or entering forced sales since the spring survey.
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A PETITION FOR a referendum on Los Angeles’s proposed “Olympic Wage” ordinance, requiring a $30 minimum wage for hospitality workers by the 2028 Olympic Games, lacked sufficient signatures, according to the Los Angeles County Registrar. The ordinance will take effect, raising hotel worker wages from the current $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.
Mandatory health care benefits payments will also begin in 2026.
The L.A. Alliance for Tourism, Jobs and Progress sought a referendum to repeal the ordinance, approved by the city council four months ago. The petition needed about 93,000 signatures but fell short by about 9,000, according to Interim City Clerk Petty Santos.
The council approved the minimum wage increase for tourism workers in May 2023, despite opposition from business leaders citing a decline in international travel. The ordinance requires hotels with more than 60 rooms and businesses at Los Angeles International Airport to pay workers $30 an hour by 2028. It passed on a 12 to 3 vote, with Councilmembers John Lee, Traci Park and Monica Rodriguez opposed.
The L.A. Alliance submitted more than 140,000 signatures in June opposing the tourism wage ordinance, triggering a June 2026 repeal vote supported by airlines, hotels and concession businesses.
AAHOA called the ruling a setback for Los Angeles hotel owners, who will bear the costs of the mandate.
"This ruling is a major setback for Los Angeles' small business hotel owners, who will shoulder the burden of this mandate," said Kamalesh “KP” Patel, AAHOA chairman. "Instead of working with industry leaders, the city moved forward with a policy that ignores economic realities and jeopardizes the jobs and businesses that keep this city's hospitality sector operating and supporting economic growth. Family-owned hotels now face choices—cutting staff, halting hiring, or raising rates—just as Los Angeles prepares to host millions of visitors for the World Cup and 2028 Olympics. You can't build a city by breaking the backs of the small businesses that make it run."
Laura Lee Blake, AAHOA president and CEO, said members are proud to create jobs in their communities, but the ordinance imposes costs that will affect the entire city.
“Even with a delayed rollout, the mandate represents a 70 percent wage increase above California's 2025 minimum wage,” she said. “This approach could remove more than $114 million each year from hotels, funds that could instead be invested in keeping workers employed and ensuring Los Angeles remains a competitive destination. The mandate increases the risk of closures, layoffs and a weaker Los Angeles."
A recent report from the American Hotel & Lodging Association found Los Angeles is still dealing with the effects of the pandemic and recent wildfires. International visitation remains below 2019 levels, more than in any other major U.S. city.
India-based TBO will acquire U.S. wholesaler Classic Vacations for up to $125 million.
The deal combines TBO’s distribution platform with Classic’s advisor network.
Classic will remain independent while integrating TBO’s global inventory and digital tools.
TRAVEL BOUTIQUE ONLINE, an Indian travel distribution platform, will acquire U.S. travel wholesaler Classic Vacations LLC from Phoenix-based The Najafi Cos., entering the North American market. The deal is valued at up to $125 million.
Gurugram-based TBO is led by co-founders and joint MDs Gaurav Bhatnagar and Ankush Nijhawan.
“We’re thrilled to bring Classic Vacations into the TBO family – the company’s longstanding delivery of services has earned the trust of more than 10,000 travel advisors in the U.S. and their end customers, making Classic Vacations a seamless fit for our vision in the travel and tourism industry,” said Bhatnagar. “Classic Vacations is led by a strong team and will continue as an independent brand while leveraging TBO’s technology and distribution capabilities to grow its business.”
Classic Vacations reported revenues of $111 million and an operating EBITDA of $11.2 million for the financial year ending Dec. 31, 2024, the companies said in a joint statement. The company has a network of more than 10,000 travel advisors and suppliers.
The acquisition combines TBO’s distribution platform with Classic’s advisor network to strengthen their position in the outbound market, the statement said. Classic will continue as an independent brand while integrating TBO’s global inventory and digital tools.
Nijhawan said the acquisition furthers TBO’s investment in organic and inorganic growth.
“As we begin integrating Classic Vacations with TBO, we will remain open to similar strategic alliances going forward,” he said.
Classic Vacations was acquired from Expedia Group by The Najafi Cos. in 2021.
“This acquisition and partnership are a natural next step for our portfolio company Classic Vacations, and we’re happy to have worked successfully with them for the last four years, maximising the company’s strengths and expertise in luxury travel,” said Jahm Najafi, founder and CEO, The Najafi Companies.
Moelis & Co. LLC was the financial adviser and Ballard Spahr LLP the legal adviser to Classic Vacations. Cooley LLP served as legal adviser and PwC as financial and tax adviser to TBO.
AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
The collaborations align academic programs with industry workforce needs.
It will provide data, faculty development, and student engagement opportunities.
THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.
Their efforts build on the foundation’s scholarships and link academics to workforce needs, AHLA said in a statement.
"We're not just funding education—we're investing in the alignment between academic learning and professional readiness," said Kevin Carey, AHLA Foundation president and CEO. "These partnerships give us the insights needed to support students and programs that effectively prepare graduates to enter the evolving hospitality industry."
ACPHA will provide annual reports on participating schools’ performance, enabling the Foundation to direct resources to programs with curricula aligned to industry needs, the Foundation said.
Thomas Kube, incoming ACPHA executive director, said the partnership shows academia and industry working together for hospitality students. The collaboration with ICHRIE includes program analysis, engagement through more than 40 Eta Sigma Delta Honor Society chapters and faculty development.
“Together, we are strengthening pathways to academic excellence, professional development and industry engagement,” said Donna Albano, chair of the ICHRIE Eta Sigma Delta Board of Governors.
OYO’s parent firm, Oravel, rebranded as PRISM to reflect its global hospitality portfolio.
The rebrand emphasizes the group’s focus on technology and growth.
It added 150+ hotels to its U.S. portfolio in H1 2025, with 150 more planned by year-end.
ORAVEL STAYS LTD, the parent company of OYO, rebranded as PRISM to reflect its global presence and diversified portfolio. The new identity brings budget stays, hotels, vacation homes, extended living, co-working and event spaces under one structure.
OYO will remain the company’s consumer brand, while PRISM will serve as the corporate brand overseeing growth across 35-plus countries, the company said in a statement.
“Over 6,000 brilliant ideas came through and after careful consideration, one name shone above the rest: PRISM. PRISM isn’t just a name—it’s the evolution of everything we stand for,” wrote Ritesh Agarwal, founder and Group CEO of PRISM, on X. “From the trusted stays that OYO helped introduce, to a spectrum of experiences and spaces built for the future. It’s a community of Lightkeepers, urban innovators on a mission to solve the toughest challenges of city living—lighting the way in every aspect of life.”
Founded in 2012 by Ritesh Agarwal, OYO has since grown into a hospitality and travel-tech network with more than 100 million customers in 35-plus countries, the statement said. Its portfolio includes budget hotels under OYO, premium brands such as Townhouse, Sunday and Palette, vacation homes through Belvilla and DanCenter, extended stay residences under Studio 6 and workspace and event services via Innov8 and Weddingz.in.
Press Trust of India recently reported that OYO plans to file its Draft Red Herring Prospectus in November for a $7 to 8 billion IPO.
U.S. expansion
The company continues its franchise growth in the U.S., planning to add more than 150 hotels under Motel 6 and Studio 6 in 2025, the statement said. It also announced a $10 million marketing investment to drive customer adoption and expand website and My6 app capabilities.
Moreover, OYO also added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans to add 150 more by year-end.
OYO US operates OYO Times Square in Midtown Manhattan, near Times Square and Broadway. In Las Vegas, it operates OYO Hotel & Casino Las Vegas close to the Strip with access to entertainment and casinos.
The name PRISM was chosen through a global competition with more than 6,000 submissions and will now serve as the corporate identity for its portfolio. The rebrand highlights the group’s focus on technology and premium offerings.
“The transition to PRISM marks the establishment of a future-ready corporate architecture designed to align our expanding portfolio with our long-term vision,” Agarwal said “PRISM is powered by a strong technology engine, deeper investment in data science and AI and a commitment to helping our partners grow profitably while delighting customers worldwide.”
Partners also welcomed the move, noting the company’s role in helping independent hoteliers and asset owners scale.
“Over the past seven years with OYO, now PRISM, I’ve expanded from a single property to 18 hotels. The partnership has been transformative—the team’s support and expertise have driven consistent growth,” said Ramu Nayudu, owner of Hyderabad-based SV Hotels Group.
Sam Patel, Founder & CEO of Natson Hotel Group, said he has been part of G6 and PRISM for more than 20 years.
“While I own hotels with multiple other brands, more than 60 percent of my total portfolio is with G6 Hospitality,” he said. “I am excited for this new journey with PRISM and all the opportunities it will bring for asset owners in the U.S. and worldwide.”