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 U.S. HOTEL industry is “beginning to get back to getting back to it,” according to a speaker at The Lodging Conference 2022, held Sept. 19-22 in Phoenix. More than 2,500 people attended the event at the JW Marriott Desert Ridge Resort, continuing the industry’s return to normalcy after more than two years of pandemic.
Talk of the economy during the conference was mostly positive, though concerns about the labor shortage remained high as well as some apprehension about overall economic stability. Women were strongly represented on the stage with the awarding of the annual Castell Award. AAHOA’s leadership team also contributed to the conference conversation.
What the experts said
On the second day of the conference came reports from several different market research firms probing the state of the industry. They included Bruce Ford, senior vice president and director of global business development at Lodging Econometrics.
“Welcome to Phoenix. Welcome to the Lodging Conference and welcome to the beginning of the recovery for the hotel business,” Ford told the audience during his panel, Speed Stats Part II. “And when I say the beginning of the recovery, we've seen lots of different stats so far, and we're talking about maybe, and somehow, and this might go. But, the most important thing that you should feel in the industry right now is we're beginning to get back to getting back to it.”
Ford said the pipeline is currently bloated as developers announce more hotels than they open. People are trying to pick up the pieces, he said, but the rising number of hotel transactions tell him some are still selling and buying assets.
“We're also still renovating assets, we're converting assets and we are seeking third party management,” Ford said. “So, the tools are really all in play right now.”
Research firm HotStats has collected profit and loss data from more than 10,000 hotels and found some positive trends, said Michael Grove, the company’s chief operating officer.
“Looking at, for instance, at revenues, I never thought we would be where we are right now,” Grove said. “Overall, we are back where we were in 2019 at the same time, and that has been for the last few months.”
The industry continues to recover, albeit in unexpected ways, said Mark Lomanno, partner and senior advisor at Kalibri Labs
“This has been a very unusual recovery in that it's the first time in the history of the industry where ADR has led to recovery as opposed to demand and occupancy,” Lomanno said. “What we think is going to happen is going forward the rest of 2022 and into 2023 is that it will turn into a more normal looking recovery with demand getting stronger and ADR plateauing.”
The hotel owners and operators on the conference’s panels also shared mostly positive feelings. However, the celebration was muted by certain realities.
The professionals’ opinions
So far, 2022 has gone well for Noble Investment Group, including several hotel acquisitions and a recent expansion of its leadership team. The company’s leader, Mit Shah as CEO, on Sept. 9 was named 2023 Hospitality Executive of the Year by Penn State School of Hospitality Management in the College of Health and Human Development and the Penn State Hotel & Restaurant Society.
“If we go back to just what everybody thought about the economy coming out of the second quarter earnings report, some of you saw company after company, from Amex to Hilton, Marriott and REITs in our space, all beat guidance,” Shah said during the conference’s “A View from the Top panel.” “I believe that we're all feeling the impacts of dollars coming into the system and trying to get soaked back up. And so, the real question is, can we move rate pricing power faster than the other kinds of spending slow down and interest rates go up? I think we feel a lot differently about it than we did six months ago.”
Shah had mixed expectations for hotel transactions in 2023.
Mit Shah, CEO of Noble Investment Group, said during the conference that he expects to see greater emphasis on cash deals resulting in “a lot of interesting dynamics” in the second half of this year.
“There's going to be this place where budgets will come in, they'll look positive, but with less growth than I think a lot of people expect and you'll have maturities that are coming due,” Shah said. “There was $236 billion in lodging loans originated in 2017, ’18 and ’19, and you've got CAPEX that hasn't been spent in hotels for the better part of three years. All of those things combined are going to put a number of different stresses on the marketplace.”
He expects to see greater emphasis on cash deals resulting in “a lot of interesting dynamics” in the second half of this year.
“The other thing just keep in mind, my last point, is that there's no permanent capital market right now,” Shah said. “There's no place for these loans in which to go. These large banks that have historically led can't make a whole lot of new loans unless they get paid off.”
Overall, the market is in a better position, said Mark Purcell senior vice president for development in North and Central America for Accor, during the “Deals, Development, M&A” panel on the first day of the conference.
“Some of the really tough supply chain issues have gotten a lot better,” Purcell said. “The biggest issues we have right now are higher energy costs, higher insurance costs, higher wage rates, double digit increases in wages over the last 12 to 18 months. But fortunately, you can combat that by raising your rate every day.”
The supply chain disruption from earlier in the year had forced many hotel operators to get creative with finding material from multiple sources, said Brian Quinn, chief development officer for Sonesta Hotels & Resorts. That’s no longer necessary.
“I think the blessing of inflation is they're finally raising rates, so we're able to right now outpace additional operating costs,” Quinn said. “For right now, we continue to outpace our expenses for the most part. But be careful, because there's a cap to that, we can’t do that forever.”
Chip Ohlsson, executive vice president and chief development officer for Wyndham Hotels & Resorts, also advised cautious optimism about improvements in the hotel industry.
“If you'd asked me six months a year ago, it would have been something else. But right now, there’s uncertainty in the marketplace of where the growth is going to come from,” Ohlsson said. “Is it conversion? Is it new construction? What segment is it going to come in? And trying to predict the future is almost an impossibility. So being prepared and making sure that we as a company, continue to innovate, and look at things differently and not fall back on our laurels, I think that's to make sure they're always looking for the next great thing for customers.”
Speaking from the chair
Neal Patel, chairman of AAHOA, took to the stage on the last full day of the conference for the “Leaders in Hospitality” panel. The labor shortage was one of the first subjects he addressed, saying it was a major issue for the association’s members.
“In 2019, AAHOA did a survey of the membership when it came to labor challenges because that is our number one challenge and continues to be our number one challenge,” Patel said. “In the survey, 91 percent of the hotels had job openings. And COVID definitely did not help. Right now, if you were to ask the same question, it'd be 100 percent.”
Patel said new technology that surged in the pandemic has helped. In his own company, Blue Chip Hotels, they were having a hard time finding labor despite paying competitive wages.
“At night, we had to shut down our offices because of a lack and shortage of labor,” he said. “Now we have a kiosk, which connects to you and someone who's sitting in India, and it's costing me $8 an hour at the same time. It can accept cash, it will give you change, and at the same time also prints your key for the room.”
Technology may not be a final solution to the problem, but it is likely to remain helpful.
“Once the labor does come back, hopefully soon, then the kiosk will remain there. But now my guest service will now be more of a concierge, helping guest out with the people who actually want to chat,” Patel said.
Later, however, Patel said the technology that should be developed may not include one of the most common solutions offered today, cloud-based apps.
“Technology, I think that is the future, but the cloud is not the future,” Patel said. “We need to decentralize our servers so it's not that easy to hack them. And when you decentralize things, you're splitting everything up in different fragments, and you're making it so much safer.”
Another subject Patel addressed was the ongoing threat posed by unregulated short-term rentals to traditional motels.
“Going back to 2004, my family and I moved from India, we had a 20-room hotel. Every weekend, we went to Blockbusters and rented a movie for family time,” Neal said. “And then Netflix and other streaming services took over the market share. I think that is exactly what's happening with our industry right now and regulation has a lot to do with it.”
Recently the AAHOA board unanimously decided to launch a short-term rental bill which will take the power to regulate the rival business away from the states and give it to the local authorities, Patel said. Just in Nashville, short-term rentals bring in about $30 million a month.
“That's the market share going away from our industry into these unregulated homes or hotels in different neighborhoods, and we're trying to avoid that,” he said. “I think we have the membership on the ground, they'll continue to push this at the local and the state level. And that is our goal is how can we make all 50 states adopt this bill which we'll be launching.”
A study in leadership
In July, the Castell Project and the American Hotel & Lodging Association Foundation named Leslie Hale, president and CEO of RLJ Lodging Trust and vice chair of the AHLA board of directors, as winner of the third annual Castell Award. During the conference, Hale accepted the award, which honors a female trailblazer in the hospitality investment arena who paves the way for more women to rise to the top.
Peggy Berg, founder of the Castell Project, introduced Hale.
Leslie Hale, president and CEO of RLJ Lodging Trust and vice chair of the AHLA board of directors, accepted the third annual Castell Award from the Castell Project and the American Hotel & Lodging Association Foundation during the Lodging Conference.
“We established the Castell award because we wanted the very male world of hotel ownership and development to see women in leadership, and for women in the industry to see women in leadership so that all of you know that there's an opportunity out there in this industry,” Berg said. “And it's had such an impact. You look around this room, we are more diverse than we've ever been before. We're making progress from the men and the women in this room, and the effort you're putting into this.”
Hale said she was honored to accept the award, not just for herself but for other women in the industry.
“These efforts are really important because they have the ability to change the way that women see our industry, but also and more importantly, change the way they see themselves in the industry,” Hale said. “I believe this is important because on my very best day, I'm just simply emulating the women who inspired me, who mentored me and who coached me along the way.”
She went on to say her mission to help others would continue.
“There are many women in the hospitality industry who are equally as talented as I am, who just need access to opportunities that can lead to executive level roles, sponsorship and encouragement,” she said. “Knowing this, I feel a deep sense of responsibility to help women lean in elevate and excel extend to leadership roles.”
Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.
STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.
It has an outdoor pool and more than 26,000 square feet of meeting space, Stonebridge said in a statement. The downtown Dallas property is near Main Street Garden Park, the Arts District, the Kay Bailey Hutchison Convention Center, Deep Ellum, Klyde Warren Park, and the Dallas World Aquarium.
“The Statler is an extraordinary asset with a storied history in Dallas, and we are thrilled to welcome it to our managed portfolio,” said Rob Smith, Stonebridge’s president and CEO. “Its blend of modern hospitality with timeless character makes it a natural fit within our lifestyle collection. We look forward to honoring the property’s legacy while enhancing performance and delivering an elevated guest experience.”
Stonebridge, based in Denver, is a privately held hotel management company founded by Chairman Navin Dimond and led by Smith. The company recently added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
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G6 Hospitality and the Texas Hotel & Lodging Association will support Texas hotel advocacy.
G6 adds an economy-brand perspective to policy and support discussions.
The two will co-host workshops for market education and talent development.
G6 HOSPITALITY, PARENT of Motel 6 and Studio 6, recently joined the Texas Hotel & Lodging Association to expand a statewide coalition on advocacy, public safety and market growth for its Texas franchisees. The company brings an economy-brand perspective to discussions that influence policy, operations and guest experience across the state.
The two will co-host workshops, forums and tech showcases to support market education, best-practice sharing and talent development statewide, the duo said in a statement.
“As we join THLA, our goal is to contribute to a stronger Texas lodging ecosystem—advocating smart policy, elevating safety and guest experience and providing collaborative learning opportunities for our franchisees and employees statewide,” said Sonal Sinha, G6 Hospitality's CEO. “We’re proud to add our voice and scale to THLA’s efforts while equipping our franchisees with Texas-specific resources to operate confidently and grow.”
The company will support discussions on competition, consumer protection, tourism promotion and workforce initiatives for independent and branded hotels, the statement said. OYO CEO Ritesh Agarwal is chair of G6 Hospitality.
“G6 Hospitality’s membership strengthens our initiatives that help advance Texas hotels," said Scott Joslove, THLA's president and CEO. "Their reach in the economy segment brings valuable insights to policy development, workforce initiatives and community safety programs that benefit properties in every market and price point."
THLA works with state and local leaders to promote business growth, protect consumers, and support hotels with legal guidance, policy insights and education, the statement said. The association will provide Texas-specific compliance and operations training for G6 owners and teams alongside G6’s standards.
Peachtree secured EB-5 approval for a Florida multifamily development project.
The 240-unit community in Manatee County is backed by $47 million in construction financing.
It is Peachtree’s fourth EB-5 project approval since launching the program in 2023.
PEACHTREE GROUP RECENTLY secured EB-5 approval from U.S. Citizenship and Immigration Services for Madison Bradenton, a 240-unit multifamily development in Bradenton, Florida. It also raised $47 million in construction financing with a four-year term for the project on a 10.7-acre site in Manatee County.
The approval allows the company to advance its EB-5 Immigrant Investor Program, which directs foreign investment to U.S. job creation, Peachtree said in a statement.
“Madison Bradenton reflects the strong demand for high-quality multifamily housing in growing markets,” said Adam Greene, Peachtree’s executive vice president of EB-5. “This project underscores our ability to pair EB-5 financing with secured lending, delivering attractive opportunities for investors while meeting critical housing needs.”
The project will include five four-story apartment buildings with elevators, a two-story carriage building and a clubhouse, with residences averaging 1,027 square feet and featuring private patios or balconies. The location provides access to employment centers, healthcare facilities and Siesta Key Beach.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO and Mitul Patel, principal.
This is Peachtree’s fourth approved I-956F application, following projects such as Home2 Suites by Hilton in Boone, North Carolina; SpringHill Suites by Marriott in Bryce Canyon, Utah and TownePlace Suites by Marriott in Palmdale, California. In May, Peachtree secured USCIS approval for four regional centers—South, Northeast, Midwest and West—allowing it to sponsor EB-5 projects in those territories.
The EB-5 visa program allows foreign investors to obtain a green card by investing in a U.S. commercial enterprise that creates jobs, the statement said. Investors who contribute at least $800,000 to a project that creates or preserves 10 full-time jobs for U.S. workers are eligible for permanent residency.
Separately, Peachtree launched the $250 million Special Situations Fund to invest in hotel and commercial real estate assets affected by capital market illiquidity.
GSA will keep federal per diem rates the same for FY 2026.
The lodging rate stays $110 and meals allowance $68.
AHLA raised concerns over the impact on government travel.
THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.
The standard lodging rate remains $110 and the meals and incidental allowance is $68 for fiscal year 2026, unchanged from 2025, GSA said in a statement.
“Government travel is a vital economic driver for the hotel industry and the broader travel economy,” said Rosanna Maietta, AHLA’s president and CEO. “That’s why it’s so important for government per diem rates to keep pace with rising costs across the economy. The GSA’s decision to keep per diem rates flat will place a strain on the hospitality industry as well as government travelers seeking lodging. A strong economy requires a thriving hospitality sector. We will continue to advocate with the GSA and members of Congress for per diem rates that reflect hotels’ rising costs of doing business.”
GSA sets per diem rates to reimburse federal employees’ lodging and meal expenses for official travel within the continental U.S., based on the trailing 12-month ADR for lodging and meals minus 5 percent. This is the first year in five that GSA has not raised the rates.
The federal administration said the decision reflects the federal government’s commitment to using taxpayer funds appropriately and for core mission activities. The steady per diem rates are enabled by the reduction in inflationary pressures from the previous administration.
“GSA's decision ensures cost-effective travel reimbursement while supporting the mission-critical mobility of the federal workforce,” said Larry Allen, associate administrator, GSA Office of Government-wide Policy.
The rate applies to federal travelers and those on government-contracted business for all U.S. locations not designated as “non-standard areas,” which have higher per diems. For fiscal year 2026, GSA will keep the number of non-standard areas at 296, unchanged from 2025.
North America recorded a 10 percent decline while Central America dropped 12 percent.
THE GLOBAL TRAVEL and tourism sector recorded an 8 percent year-on-year decline in total deal activity during the first half of 2025, according to market data firm GlobalData. Reduced investor appetite was seen across major deal types: mergers and acquisitions, private equity and venture financing.
GlobalData’s analysis shows venture financing deals fell by about 25 percent and private equity deals dropped by around 20 percent compared to the same period last year. M&A activity proved more resilient with a smaller 3.5 percent decline in volume. North America saw a 10 percent decline while Central America saw a 12 percent decline.
“The overall decline underscores a broader trend where macroeconomic factors and investor sentiments are reshaping deal-making strategies within the industry. The subdued activity suggests that dealmakers are becoming increasingly cautious, likely due to macroeconomic challenges and volatile market conditions,” said Aurojyoti Bose, lead analyst at GlobalData. “The decline in venture financing and private equity deals, suggests a dent in investor sentiment, emphasizing a trend of reduced risk appetite.”
The Asia-Pacific region posted growth, with deal volume rising 11 percent in H1 2025, driven by increased activity in Japan and India. In contrast, Europe saw a 19 percent drop, the Middle East and Africa fell 39 percent and South and Central America declined 12 percent.
Among major markets, the US, China and Germany all recorded declines in deal announcements while the UK maintained deal volumes at similar levels to last year.
GlobalData notes that historical figures may change if additional deals from earlier months are disclosed later.
Last year saw a 12.6 percent decline, with a total of 347 mergers and acquisitions, private equity and venture financing deals reported in the global travel and tourism sector during the first half of 2024.