Deals Are Coming Back:
Why Hotel Transactions Are Finally Moving Again
By Woody Woodward
For the last few years, the hotel transactions market has felt stuck in neutral. Interest rates climbed, debt became harder to secure and the gap between buyer and seller expectations seemed impossible to close. But as we move into 2026, I believe we're finally at an inflection point. Deals are beginning to move again across every segment of the market.
Where Deals Have Been Happening All Along
Even in the slowest transaction years, there have always
been two active ends of the spectrum:
- Hoteliers, mostly owner-operators in the $10 million-and-under range, who can run properties lean and make the numbers work through efficient operations.
- Institutional buyers chasing irreplaceable real estate, who are in it for the long haul and can ride out short-term market swings.
It's the middle, between those two extremes, where things
stalled. Private equity funds and syndicated ownership groups with investor
reporting obligations were squeezed by uncertainty, debt maturities, and return
expectations that just didn't pencil out. The result was a long pause for deals
that should have traded hands years ago.
The Gap Is Narrowing
Now, that's changing. The same pressures that slowed
deals, such as debt expirations, private credit competition, and aging
investment cycles, are now pushing transactions forward. Buyers and sellers are
getting closer to each other's expectations because both sides need movement.
Yes, there's still uncertainty in the market. There always will be. But uncertainty doesn't mean inactivity. The buyers who know what they're looking for and have the conviction to act will find opportunities.
As I often say, people are starting to talk about how
to get a deal done rather than how NOT to.
The Next Wave of Transactions
I expect the next wave of hotel transactions to be driven
by maturity pressures. The "extend and pretend" era of loan modifications is
ending. Many owners have extended once or twice, and lenders are ready to see a
resolution. That will bring more assets to market in the next 12-18 months and
create opportunities for well-prepared buyers and operators.
At HVMG, we're already working with owners who recognize
that the next chapter of their portfolio may look different. Whether they're
repositioning, selling, or acquiring, they want to partner with an operator who
understands both sides of the transaction: the financial levers and the
operational realities that determine long-term value.
The Bottom Line
We may not be in a boom, but the thaw has begun.
Headwinds are still blowing, but transactions are coming back because
sophisticated owners and operators have learned how to navigate through them.
In this market, relationships, discipline, and local
market knowledge matter more than ever. Deals are happening again, and the ones
that get done will be smarter, stronger, and more sustainable than the last
cycle's frenzy.
