The hotel investment world has changed. Secondary U.S. hotel markets now represent the greatest investment opportunities in the sector.
The U.S. hotel industry continues to achieve strong performance following years of record occupancy levels and profit margins. However, the country’s largest hotel markets are moderating due to the pressures of increasing competition, a stronger dollar and higher costs. As a result, traditionally overlooked secondary markets now represent the industry’s greatest opportunities for performance growth.
3.4M
ROOMS IN
U.S. SECONDARY MARKETS
128,000
ROOMS IN
TOP 6 CANADA MARKETS
While insulated from several challenges facing hotels in U.S. gateway destinations, secondary hotel markets can often be more complex for investors to navigate. Success in these markets requires strong local knowledge, on-the-ground insights and the right combination of asset management and operations expertise to maximize returns and long-term real estate value.