Let me take you back to 1995. It was a pivotal time when the lodging real estate market was just beginning to rebound after one of the most challenging downturns in the industry’s history.
Back then, hotel fundamentals were stabilizing after years of oversupply, distressed assets and financial turmoil. Investor confidence, though cautious, was beginning to return. Financing options had opened, however lenders remained selective and underwriting standards were strict. Buyers who had previously been chasing distressed opportunities were starting to give way to longer-term investors focused on creating value rather than simply acquiring discounted assets. However, the recovery remained fragile and the industry understood that discipline, patience and strategic decision-making were essential for sustained growth.
Fast forward to today, 2025. While the challenges have changed, many of the core dynamics remain familiar.
Today’s lodging sector has weathered a pandemic, shifting demand patterns and ongoing global geopolitical and economic volatility. Investor interest remains strong, yet capital markets are once again in flux and creative deal structures are often necessary to close transactions.
The industry is seeing strong activity across newer segments such as lifestyle hotels and branded residential products. Yet just like in 1995, success in today’s market requires a disciplined approach with a sharp focus on operational efficiency, risk management and strategic growth.
Reflecting on 1995 reminds us that while the industry evolves, the fundamentals of smart investing do not change.
This article was originally published in the July/August edition of Hotel Management magazine. Subscribe here.