For hotel investors, the question isn’t whether opportunity exists. It’s how to find it.
The U.S. market has been on a rollercoaster since the pandemic, posting steep losses before rebounding over the past few years. Yet, today, it tells two distinct stories. Some cities recorded impressive RevPAR growth in the first quarter; others posted notable declines. There’s no single explanation—the forces at play vary widely by market.
According to Eric Jacobs, chief global growth officer, Aimbridge Hospitality, the world’s leading third-party hotel management company, that divergence is exactly where opportunity lives.
“It’s not for the faint of heart,” Jacobs said. “You need to be a sophisticated investor willing to dive into how the hotel industry works and the current environment. But for investors who understand this business and know where to look, the opportunities are significant.”
He’s clear-eyed about the headwinds. Goods and labor costs are outpacing revenue growth, pressuring net operating income across the industry. And as the U.S. prepares to host major international events, including the FIFA World Cup, travel-visa access remains a hurdle for international visitors.
Still, the openings are real. More distressed properties are reaching the market, creating opportunities to buy at a discount. Jacobs has watched investors become hard-money lenders, acquiring debt that public and private institutions want off their books. For those willing to take a longer view, certain markets facing near-term headwinds offer opportunistic buys. His advice: track where companies are relocating, because hospitality demand follows them.
Jacobs cautions that commercial real estate is complex, and hospitality is its most demanding facet. A traditional CRE owner can sign a long-term lease and count on steady income. A hotel has to put “heads in beds” every night. Revenue doesn’t renew itself; it must be earned continuously through disciplined operations and commercial execution. That’s why investors need a strong, experienced operator acting as a trusted partner.
“Savvy investors need to be working with a sophisticated operator that has the ability, the scale and the systems to identify and assess opportunities, execute at the property level and drive both top-line revenue and profitable returns,” he said.
Aimbridge has operated hotels for more than 30 years and continually underwrites new markets, properties and investment theses—analyzing more than 700 deals a year through a dedicated feasibility team. That depth means owners gain more than an operator; they gain a partner who can evaluate the investments they’re weighing or surface opportunities they haven’t found. It has also allowed Aimbridge to build a vast proprietary database for deeper insight into market dynamics.
“Because of our size and scale, owners know they can come to us as they’re looking for investments—for example, coming out of a 1031 exchange or selling an asset—and we can help pair them with potential buyers or sellers,” Jacobs said.
Aimbridge operates nearly 1,000 hotels with a singular focus on the owners who entrust it with their assets. Once an asset is in hand, the company leverages proprietary cross-market, cross-vertical data to power an integrated commercial platform that unites sales, marketing, revenue management, and national sales, driving performance from day one.
“Owners give us the privilege to welcome guests into their hotels, but our primary ‘guests’ are the owners themselves,” Jacobs said. “There are opportunities in both the ups and the downsides of the market; you just have to be strategic. Long-term, the fundamentals of this business are incredibly strong – because at the end of the day, we all love to travel, and that will never change.”
To learn more about Aimbridge Hospitality, visit aimbridgehospitality.com/why-aimbridge.htm
