To our industry friends
Happy New Year! As we bid farewell to an eventful 2024, we want to take a moment to express our deepest gratitude for your trust and partnership. The past year reaffirmed the resilience and dynamism of our industry. Hotel investments demonstrated significant growth, driven by strong consumer demand and a renewed focus on experiential travel.
As we look forward to 2025, we are confident there will be more opportunities to work together for a variety of reasons. We believe that:
- Markets where performance had been lagging in the wake of the pandemic are finally stabilizing, and, generally, those that have recovered more quickly will continue to perform steadily.
- Debt for hotels continues to be available and, increasingly, more affordable.
- Ample equity that has been raised for lodging investment in recent years needs to be deployed by a growing collection of qualified investors.
- Visibility on macro factors, like the presidential election, provided more certainty in the marketplace leading to greater investor confidence in the lodging sector.
Put simply, we are entering the most stable environment for both lodging operations and investment transactions since the end of 2019.
We remain optimistic about the future of hotel investments. It is an asset class that continues to outperform most other real estate investments. The recovery of urban markets, continued growth in secondary and tertiary cities, and a robust pipeline of development projects are just a few of the promising trends we foresee. Transient demand continues to fare well while Group demand continues its return to pre-pandemic levels. All of these signs point to attractive hotel investment opportunities ahead. Whether you are exploring acquisitions, recapitalizations, dispositions or new developments, The Plasencia Group is here to provide prudent advice and counsel.
We are deeply thankful for the opportunity to work with you and look forward to another year of collaboration, innovation, and success. Here’s to a prosperous 2025 filled with optimism and confidence.
Warmest regards,
Lou Plasencia,
Chief Executive Officer, The Plasencia Group
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