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Hunter Hotel Investment Conference 2025: Navigating Uncertainty, Finding Opportunity
- Stacy Silver
- Mar 27
- 4 min read
The 2025 Hunter Hotel Investment Conference in Atlanta revealed an industry walking a tightrope—balancing economic uncertainty, high interest rates, and recession whispers with a steely focus on fundamentals and long-term plays. While global hotel investment volume ticked up to $57.4 billion last year—a modest 7% rise over 2023—it still ranks as the third-lowest total since 2012. Transaction activity remains sluggish, weighed down by a stubborn bid-ask spread and cautious capital markets. But for savvy investors with a creative streak, this moment might present unique opportunities.
Market Mood: A Cautious Optimism Amid Economic Headwinds
During the “Market Overview: Financial Analysis and Forecast” panel, experts pointed to a growing shift in the buyer-seller landscape. Institutional sellers, particularly those approaching fund maturity or facing PIPs, are increasingly motivated to transact. “There’s capitulation happening,” said Teague Hunter, president and CEO of Hunter Hotel Advisors. At the same time, smaller regional buyers with long-standing bank relationships are stepping into the void—betting on operational efficiency.
Staying Profitable in a Flat RevPAR World
Industry leaders also noted the strategic adjustments needed to maintain profitability in a market marked by modest RevPAR growth and fluctuating demand. Sarah Dinger, EVP of Franchise Operations at My Place Hotels, emphasized that success in this environment requires operational discipline and guest-centric thinking. She noted that hotels must prioritize managing variable expenses—now more achievable through AI integrations in payroll and property management systems—while leveraging dynamic pricing and revenue management strategies. “Prioritizing our guests remains the number one focus,” said Dinger. “Hotels must emphasize the guest experience and put added focus on the basics of hospitality to drive repeat business.”
Development Dilemmas: When Building Doesn’t Make Sense
Meanwhile, development across the industry has slowed, especially in the upper-upscale segment. Increasing construction costs and higher interest rates have made new construction challenging. “It doesn’t make sense to build today,” said Bob Webster, vice chairman of CBRE, while Peachtree Group’s managing principal and CEO, Greg Friedman, pointed to the sharp rise in PIPs—from $30,000 to $75,000 per key—as a barrier to full-service deals. For many, reinvesting in existing assets has become the more prudent path forward. Judi Bikulege, Senior Managing Director of Real Estate at Extended Stay America, shared that ESA is sticking to what works—limiting transient business to preserve strong margins. “We’re continuing with our standard operating business model,” she said, “because it delivers consistent results even in uncertain times.”
Deals in Limbo: Waiting on the Fed
Uncertainty around the Federal Reserve’s interest rate decisions also impacts transaction activity. While a rate cut may be on the horizon later this year, the prevailing wait-and-see sentiment has slowed deal flow. Dinger noted that the deal-making environment has grown increasingly cautious as capital costs remain unclear. “Typically, the precursor to a ‘new normal’ is stabilization, and we certainly haven’t seen much of that in our economy lately,” she said, adding that deals are taking longer to close due to lingering uncertainty.
Mary Beth Cutshall, Chief Growth Officer at Vision Hospitality Group, shared a similar perspective. “Uncertainty around rate cuts has kept deal activity subdued, as many buyers and sellers remain in a wait-and-see mode,” she said. With underwriting challenges and elevated borrowing costs, she noted that creative financing structures, including preferred equity and other financing structures, are bridging the gap to get deals across the finish line. Cutshall emphasized that Vision is actively reassessing its portfolio, identifying opportunities to enhance performance through capital improvement, and leveraging its brand partnerships as it continues to explore new hotel developments in high-performing markets where fundamental demand remains strong.
Equity in Focus: More Seats at the Table, but Not Enough
Beyond the transactional and operational conversations, the conference also spotlighted the state of gender equity in the industry, especially as it took place during Women’s History Month. For Bikulege, the progress is visible but incomplete. Reflecting on her early career, she noted the absence of women in the room. “It’s refreshing to see more women with a seat at the table now,” she said, “but there’s still room to grow—all we have to do is look at how many panels are still all men.”
Cutshall echoed this sentiment, adding that while women are increasingly represented in executive roles, gaps remain—particularly at the CEO and ownership levels. “With sustained efforts — mentorship, sponsorship, and structural changes in hiring and promotion practices — I’d estimate we could see significantly better parity in the next 10 – 15 years,” she said. Dinger, who chairs the AHLA ForWard Advisory Committee, emphasized that pushing for gender equity is ongoing. “This isn’t a goal with a finish line,” she said. “We’ll never stop pushing for more women in leadership.”
Looking Ahead: Pragmatism Over Panic
Despite the challenges, the atmosphere at Hunter was not pessimistic but rather pragmatic as industry veterans and newcomers seem focused on the fundamentals—efficient operations, long-term strategies, and partnership alignment—as the keys to unlocking value in a challenging but opportunistic cycle.