The hotel sector is closing out in 2025 with a story of two markets—one defined by resilience at the luxury end and another constrained by sluggish growth in the midscale and economic tiers. This divergence, underscored by recent earnings results, cooling inflation, and evolving investor sentiment, is setting the stage for a transformative 2026.
Core prices rose only 0.2% in September, signaling an encouraging slowdown in inflation. Coupled with the market expectation for a 50-basis-point rate cut by year-end, the easing macro backdrop could provide a lifeline to brands burdened by cost inflation and financing constraints. Yet, while midscale players like Wyndham and Choice Hotels continue to feel pressure, luxury and upper-upscale operators such as Hilton, Marriott, and Hyatt are thriving—supported by strong balance sheets, scalable growth models, and investor confidence.
September’s inflation data reinforced what the hospitality industry had been hoping for—signs that inflation is cooling. The U.S. Bureau of Labor Statistics reported a slower rise in core prices, mainly due to easing shelter and transportation costs. These trends align with expectations that the Federal Reserve may shift toward a more accommodative policy stance, potentially cutting rates by 50 basis points before December ends.
The Dallas Fed’s analysis provides a deeper layer of context: goods costs remain the largest driver keeping inflation above the 2% target. Their findings show that excess inflation contributions from core goods still hover near 0.3%, while non-housing services and housing inflation have moderated.
For the hotel sector, lower rates could open the door for refinancing, spur new construction, and attract sidelined capital. Developers facing higher borrowing costs from 2023 may soon find renewed flexibility—a factor that could help rebalance the playing field between large asset-light brands and smaller, capital-constrained operators.
The earnings season revealed a widening divide in performance across hotel chains. Luxury and upper-upscale players are managing to grow in a challenging environment, while midscale and economic brands are struggling to maintain momentum.
Hilton’s third-quarter update offered a reassuring narrative for investors. Despite a modest 1.1% RevPAR decline, the company outperformed in earnings thanks to disciplined cost control and stronger-than-expected licensing fees. More importantly, Hilton achieved 6.5% net unit growth, surpassing expectations and cementing its leadership among global hospitality companies.
Management remains optimistic heading into 2026, projecting stable U.S. RevPAR and a strong pipeline fueled by international conversions. Hilton’s asset-light strategy and ability to deploy key money give it flexibility that smaller brands simply can’t match. Investors have rewarded that consistency—Hilton’s stock has surged 12.9% year-over-year, a stark contrast to declines across the broader midscale category.
Marriott’s outlook is slightly more cautious, but sentiment remains constructive. Investors are primarily focused on the company’s ability to improve its organic net unit growth and normalize its growth algorithm in 2026. Recent acquisitions and the integration of MGM and residential branding deals have introduced some volatility, but analysts expect Marriott’s third-quarter results to remain within guidance.
While domestic RevPAR fell 1.5%, international business has held strong—a recurring theme among top-tier operators. In a recent investor survey, 33% of respondents identified Marriott as a high-conviction long idea, reflecting faith in the brand’s global reach and operational consistency.
If Hilton represents consistency and Marriott stability, Hyatt symbolizes transformation. Despite a 4.9% stock decline over the past year, Hyatt’s shift toward an asset-light, cash-flow-focused model has captured investors’ attention. The company is working through a mixed 2025 but setting up for a stronger 2026.
Hyatt’s net room growth forecast of 6.7%–7.7% includes major conversions like The Venetian and Playa, though organic growth sits near 4.5%. Investors, however, are looking past short-term softness, with 37% naming Hyatt as their top “long” position among global hotel stocks—more than any other brand.
At the opposite end of the spectrum, Wyndham and Choice Hotels are facing a more difficult environment. Wyndham’s third-quarter report showed U.S. RevPAR down 5%, a $12 million shortfall in royalties, and a 2.4% reduction in full-year EBITDA guidance. International markets offered little relief, with China’s RevPAR plunging 10%.
These results highlight deeper structural issues in the midscale and economy categories: limited pricing power, reduced transaction activity, and slower brand conversions. Choice Hotels, whose shares are down nearly 31% year-over-year, is expected to deliver similarly weak results, underscoring the broader midscale slowdown.
With fewer levers to pull and limited capital flexibility, these brands are losing ground to upscale competitors that can afford to be patient and invest through the downturn.
While inflation and earnings dominate the headlines, the emergence of AI-driven travel tools could prove to be the most disruptive long-term trend. Booking.com and Expedia have become the first online travel agencies (OTAs) to integrate their platforms directly into ChatGPT, enabling travelers to begin searches conversationally—e.g., “Booking.com, find me a hotel in Chicago for next Tuesday.”
This integration grants both OTAs a potential first-mover advantage in digital search behavior, merging conversational AI with real-time booking capability. As travelers grow accustomed to this new discovery model, hotels that fail to adapt could see a decline in direct booking share.
The lesson for brands is clear: personalization and customer proximity are the new battlegrounds. Integrating AI into loyalty ecosystems can deepen engagement and improve conversion rates. For investors, companies investing in this technological pivot—rather than resisting it—will likely define the next chapter of hospitality evolution.
Institutional investors are positioning themselves firmly in favor of luxury and upper-upscale operators. The common thread in their outlook: asset-light scalability, disciplined capital allocation, and predictable earnings growth.
According to recent investor surveys, Hyatt (37%) and Marriott (33%) are the most popular “long” picks heading into 2026, while Hilton continues to enjoy widespread confidence. These brands’ ability to weather macro volatility and still deliver positive net unit growth has been critical to sustaining that sentiment.
By contrast, midscale chains remain under pressure. Wyndham and Choice Hotels are contending with a demand slowdown and investor fatigue, as evidenced by steep share declines and reduced guidance. Even with potential interest rate relief ahead, their growth challenges are structural, not cyclical—suggesting that recovery will take time.
As inflation continues to ease and AI reshapes consumer engagement, the future of the hotel industry is becoming increasingly polarized. The gap between scale-driven innovation and legacy midscale dependence will only widen.
The story of 2025 isn’t just about inflation or RevPAR—it’s about evolution. Hilton, Marriott, and Hyatt are proving that scale, flexibility, and innovation are the defining traits of hospitality’s next cycle. Meanwhile, Wyndham and Choice face the daunting task of reinventing themselves to keep pace with changing traveler expectations and investor priorities.
As 2026 approaches, the hotel sector’s winners will be those that leverage capital strength, embrace AI-driven personalization, and expand globally through efficient, asset-light models.
If your firm is looking to analyze market positioning, pursue acquisitions, or optimize investment strategy within the evolving hospitality landscape, now is the time to act.
Contact us today to learn how our team can help you identify growth opportunities and align your portfolio with the future of global lodging. Together, let’s navigate the shift — from inflationary pressure to innovation-driven expansion.
Jourdyn leads the strategic marketing initiatives for NewGen Advisory, overseeing brand development, market positioning, communications, and business growth efforts across the firm.
With more than a decade of experience in marketing and business development, Jourdyn specializes in building brands, creating demand-generation strategies, developing thought leadership programs, and executing integrated marketing campaigns that drive measurable business results. Her expertise spans digital marketing, public relations, content strategy, events, social media, lead generation, and corporate communications.
At NewGen, Jourdyn is responsible for shaping and executing the firm’s marketing strategy, ensuring consistent brand visibility across all channels while supporting advisors, clients, and strategic initiatives nationwide. She works closely with leadership to develop campaigns, elevate industry presence, strengthen client engagement, and position NewGen as a trusted advisor within the hospitality investment sector.
Jourdyn holds a Bachelor of Arts in Mass Communication and Media Studies from Arizona State University and a Master of Business Administration (MBA) with an emphasis in Marketing from Grand Canyon University.
Most mornings you’ll find Jourdyn in the gym before sunrise and spending time with her husband and children.
Allysia Howerton joined NewGen Advisory in 2026 as a Pipeline & Transaction Assistant, relocating from St. Louis, MO to Arizona to take on the role. She brings a background spanning property management, client services, sales, and administrative leadership, with a track record of managing complex workflows and keeping transactions moving efficiently from inception to close.
Known for her organization, attention to detail, and relationship-driven approach, Allysia supports transaction management, pipeline coordination, and day-to-day brokerage operations — and is passionate about growing her career within the hospitality real estate industry.
Outside of work, she enjoys discovering new coffee shops and restaurants, traveling to experience new cultures, and spending time with her dogs.
2 years
Josie Numedahl joined NewGen Advisory in July 2024 as a Real Estate Assistant (REA). Originally from Iowa, she relocated to Arizona to pursue her education, graduating from Grand Canyon University in 2022 with a Bachelor’s degree in Marketing and Advertising.
Josie began her professional career as a recruiter in the finance and accounting sector, and brings that client-facing, detail-oriented background to her work at NewGen.
Outside of work, she enjoys reading, hiking, exploring local coffee shops, and spending time with friends.
X years
Anthony is the Staff Accountant for NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC, working directly under CFO Michael Lepore to handle day-to-day accounting functions across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Anthony completed coursework at Paradise Valley Community College before co-founding a family business that produced custom-wrapped die-cast model cars for corporate clients — handling vehicle customization, display stands, and branded packaging. Serving as Director of Operations, he gained hands-on experience in management, production workflows, and running a business from the ground up.
Outside of work, Anthony is a lifelong ice hockey player with a passion for motorsports — particularly motocross and classic cars. Among his favorites: the 1963 C2 Corvette Sting Ray, the 1965 Shelby Cobra S/C, and the 1971 Plymouth Hemi ‘Cuda. He hopes to one day own and operate a bookkeeping firm serving small businesses.
X years
Nick serves as Director of Operations for NewGen Worldwide and NewGen Advisory, bringing a detail-oriented, forward-thinking approach to supporting the company’s continued growth. A Minneapolis native, Nick studied at Denison University and the University of Minnesota before making his way to Arizona, where he now lives in Mesa.
He spent a decade in the hospitality industry as a server, bartender, and restaurant manager — hands-on experience that gave him a strong operational foundation and a natural fit within NewGen’s hospitality-focused business.
Outside of work, Nick is an avid writer with a passion for art, photography, and travel, and enjoys documenting his experiences through the lens.
X years
Nycole serves as Chief of Staff at NewGen Advisory, where she trains and manages the Real Estate Assistant (REA) team. She works closely with REAs to ensure agents receive consistent, high-quality support throughout every stage of a deal — from contract to close.
Alongside the Office Manager, Nycole leads onboarding for new agents, REAs, and team members across NewGen Worldwide’s subsidiaries, and has developed a training library to streamline the process for incoming staff. She is also actively involved in evaluating and implementing new platforms to improve agent and REA workflows, while providing leadership with the data needed to monitor KPIs and track revenue goals.
Her background in franchise operations management — spanning startups to scaling franchises — makes her a versatile and valuable member of the NewGen team.
20+ years
Michael is the Chief Financial Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. Michael and his team oversee day-to-day accounting, budgeting, forecasting, and financial modeling across all NewGen operations.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Michael built over 20 years of experience in accounting, tax, and operations management serving small to mid-sized businesses. He holds active CPA licenses in both New York and Arizona. His career spans public accounting — including a role as Audit Manager at PricewaterhouseCoopers — as well as private accounting and business ownership, giving him a broad, hands-on command of accounting and management functions. That dual perspective allows him to bring both tax strategy and business strategy to bear when evaluating financial decisions. He is a member of the American Institute of Certified Public Accountants (AICPA) and the Arizona Society of Certified Public Accountants (ASCPA).
A proud Italian-American, Michael lives in Scottsdale with his wife, Patty, and their three children, Alyssa, Anthony, and Joey. Outside of work, he coaches ice hockey and has a passion for cooking Italian food.
X years
Kyle is a co-founder, Principal, and Chief Executive Officer of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment firm focused on creative, flexible solutions. Beyond his broad responsibilities as CEO, Kyle’s primary focus is leading Green Card Fund, developing and implementing capital solutions domestically and internationally, and identifying attractive investment opportunities.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on business partners Girish Patel and Dan Rama’s lifetime experience in the industry. Kyle’s financial acumen and creative approach to structuring deals help NewGen Advisory clients identify and secure profitable opportunities.
Kyle earned a B.A. in Interdisciplinary Studies from Arizona State University with a focus in Business and Urban Planning. He has long been involved with the Greater Phoenix Economic Council’s (GPEC) International Leadership Council, and in 2016 was elected to the Board of Directors of Invest in the USA (IIUSA), the national EB-5 trade association, where he actively contributes to legislative reform efforts and the permanent reauthorization of the EB-5 program.
Kyle splits his time between company offices in Phoenix, AZ and Washington, D.C. Outside of work, he is an avid reader, global traveler, and snowboarder — and after logging over a million miles as a passenger, he has recently taken to the cockpit, learning to fly himself.
20+ years
Girish Patel is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions across hospitality and healthcare. Among his core responsibilities are leading strategic initiatives, overseeing financial management, and driving real estate investment acquisitions.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, grounded in Girish’s and business partner Dan Rama’s lifetime experience in the industry. Having grown up in his family’s hotel business as an immigrant, Girish developed a bottom-up understanding of hospitality — mastering operations before becoming an investor, lender, and consultant. That ground-level perspective, tested across multiple economic cycles, underpins his 20+ years as a successful business owner and brings a distinctive depth of insight to NGA’s clients and investors.
Committed to continuous learning and giving back, Girish established the RC Patel Memorial Scholarship for students pursuing careers in real estate investment. He also serves on the Board of Directors of Global Ties Arizona, an organization that strengthens international relationships by making exchange programs more impactful.
X years
Dan is a co-founder and Principal of NewGen Worldwide, LLC and its subsidiaries Green Card Fund, LLC and NewGen Advisory, LLC — a diversified real estate investment and capital solutions firm focused on creative, flexible solutions. His primary role is leading NewGen Advisory and serving as its Designated Broker in Arizona.
Green Card Fund (greencardfund.com) is a USCIS-recognized EB-5 Regional Center authorized to raise foreign capital for domestic development projects. EB-5 investors fund community-need projects and receive an immigration benefit in exchange for job creation. To date, GCF has facilitated over $125 million in foreign direct investment, delivered immigration benefits to more than 250 families, and created over 2,500 jobs in healthcare, education, and hospitality across Arizona and Washington, D.C.
NewGen Advisory (newgenadv.com) is a full-service commercial real estate brokerage specializing in hospitality assets — a natural evolution of NewGen Worldwide’s business model, built on Dan’s and business partner Girish Patel’s lifetime experience in the industry. Throughout his career, Dan has been involved in the disposition of over $600 million in hospitality assets, advising clients on acquisitions, mergers, and divestitures across the United States.
Dan began his career as a hotel operator and owner in 1994 following his studies at the University of Arizona, going on to build a portfolio as a franchisee of Red Brick Pizza, Holiday Inn, Ramada Inn, and Comfort Suites. He holds General Manager Certifications from Holiday Inn, Motel 6, and Days Inn, and is a Certified Hotel Owner (CHO) with a Certification for Hotel Industry Analytics (CHIA).
Beyond his company responsibilities, Dan is an active industry voice. He serves as an Ambassador with the Asian American Hotel Owners Association (AAHOA) — the largest hospitality owners association in the U.S. — and previously served as its Southwest Regional Director. He also sits on the Board of Directors of the Arizona Lodging and Tourism Association (AZLTA).
Dan lives in Gilbert, AZ with his wife, Chetna, their son Suraj, and their daughter Sonya. Outside of work, he enjoys golf and cheering on the Denver Broncos.
15+ years
Suraj is the Chief Legal Officer of NewGen Worldwide, LLC and a member of its senior leadership team, where he contributes to the operational management and strategic planning of the company and its subsidiaries — including Green Card Fund and NewGen Advisory. NewGen Worldwide is a diversified firm engaged in real estate investments, creative capital solutions, and advisory services for the entrepreneurial investor.
Suraj first served as outside counsel for Green Card Fund and NewGen Worldwide from 2008 to 2014 before joining the organization as Chief Legal Officer. In this role, he leads the company’s legal, regulatory, and corporate governance functions, with responsibility spanning real estate, risk management, contractual relations, and investment strategies. He also oversees the business administration of NewGen Advisory, a full-service commercial real estate brokerage specializing in hospitality assets.
Prior to joining NewGen, Suraj was Managing Partner of Bhakta & Associates, PLLC, a full-service business law firm where he represented a broad range of clients across acquisitions and sales, corporate structuring, contracts, franchise law, development and construction, and equity and debt financing.
A native of Ohio, Suraj graduated from The Ohio State University in 1999 with a B.S. in Business Administration and earned his J.D. from Case Western Reserve University in 2002. He resides in Peoria, AZ with his wife, Neena, and their two sons, Shiv and Soham.
