This past week provided one of the clearest snapshots yet of where the hospitality industry stands—and where it’s headed. From Sotherly Hotels’ $425 million take-private transaction to Booking Holdings’ strong quarterly earnings, the sector continues to show solid fundamentals despite persistent headwinds from capital markets. At the same time, the Federal Reserve’s cautious policy stance and a steady U.S. hotel development pipeline illustrate the balance between optimism in operations and restraint in investment.
In short, the hospitality sector is entering a new phase—one defined by stable performance, rising deal selectivity, and disciplined growth strategies that emphasize value over volume.
The week’s most significant announcement came from Sotherly Hotels (SOHO), which revealed plans to be taken private by Kemmons Wilson Hospitality Partners and Ascendant Capital for $425 million in cash. Valued at 9.3x Hotel EBITDA and approximately $152,600 per key, the transaction underscores growing private equity interest in income-producing hotel portfolios with operational upside.
Sotherly’s portfolio consists of 10 full-service upscale and upper-upscale hotels totaling 2,786 rooms, as well as two condo-hotels in Hollywood Beach, Florida. Together, these properties generate an estimated $141.9 million in total room revenue with a 30% NOI margin across all income streams.
The acquisition includes $350 million in debt and a $25 million promissory note, bringing total capital commitments to $462 million. This reflects Sotherly’s leverage profile—8.3x gross debt to EBITDA—and the acquirers’ willingness to recapitalize and restructure the balance sheet to unlock long-term value.
The 153% premium over Sotherly’s previous share price highlights a widening gap between public hotel REIT valuations and private market pricing. It also signals that institutional investors are once again viewing hospitality as a yield-driven real estate class worth re-engaging with—especially as hotel cash flows remain resilient.
For the broader REIT sector, this transaction could catalyze more take-private discussions and strategic reviews, particularly among smaller-cap operators with high asset values but limited liquidity.
While M&A headlines dominated the ownership side, Booking Holdings (BKNG) reinforced the operational strength underpinning the travel sector. The company once again exceeded expectations, showcasing strong momentum in both growth and profitability.
For the third quarter of 2025, Booking reported:
Room nights increased 8% year-over-year, with ADRs up 1%. The company’s Genius loyalty program, which now drives more than half of all bookings, continues to strengthen traveler retention. Additionally, Connected Trip transactions grew 20% year-over-year, signaling rising adoption of integrated, multi-product itineraries.
Booking’s U.S. performance was particularly strong, with high-single-digit room night growth supported by outbound travel and improved booking windows. As leisure travelers become more price-sensitive, OTAs are gaining share from direct brand websites—a trend likely to persist as consumers seek better transparency and flexibility.
Looking ahead, Booking forecasts 4%–6% room night growth and up to $2.1 billion in adjusted EBITDA for Q4. Ongoing investments in AI-powered personalization and supplier tools position the platform for continued share gains in 2026, reinforcing that travel demand remains durable even in a tightening economic environment.
Hotel operators remain cautiously optimistic as the sector enters the final quarter of the year. While overall fundamentals remain solid, the pace of growth has slowed modestly, particularly in leisure-heavy markets.
Xenia Hotels & Resorts (XHR) reported a slightly better-than-expected third quarter, though it trimmed full-year guidance. RevPAR was flat, with ADR up 1.6% and occupancy down 100 basis points. Higher expenses (+4.6%) compressed margins slightly, but October RevPAR rebounded +5.8%, aided by strong group and corporate demand.
Management now expects 3.5%–4.5% RevPAR growth for 2025, with softness in leisure travel offset by steadier group business. Xenia’s portfolio concentration in upper-upscale and luxury properties has helped sustain pricing power despite cost inflation.
According to Lodging Econometrics’ Q3 2025 report, the U.S. hotel construction pipeline totaled 6,205 projects (728,416 rooms), steady year-over-year. While projects under construction dipped slightly (-1%), conversion activity surged 13%, reaching a record 1,421 projects.
Upscale and upper-midscale brands dominate, accounting for 75% of all projects, as developers gravitate toward asset-light formats and quicker ROI. Lodging Econometrics projects 692 new hotel openings in 2025 and 754 in 2026, suggesting a measured but consistent expansion trend.
Notable transactions include Hilton’s Tempo Nashville refinance, which achieved an 11.2% NOI debt yield, and Wyndham’s ECHO Suites brand, which continues expanding its extended-stay footprint with new openings in growth markets such as Georgia, Texas, and Arizona.
Monetary policy once again took the spotlight after the Federal Reserve cut the federal funds rate by 25 basis points, setting the target range at 3.75%–4.00%, the lowest since 2022. While the move was expected, Chair Jerome Powell’s cautionary remarks about December’s outlook shifted market sentiment.
Following Powell’s statement that “a December rate cut is not a foregone conclusion,” the probability of a 350–375 bps range fell sharply, while expectations for 375–400 bps rose. The market now sees a realistic chance that rates could hold steady through early 2026, tempering hopes for sustained rate reductions.
For now, the hospitality market appears to be adapting to a “new normal” where operational health remains strong but capital costs dictate strategy.
The hospitality sector enters 2026 on a foundation of operational strength and financial discipline. Travel demand remains resilient, private capital is returning, and development pipelines are holding steady. Yet the environment rewards selectivity—both in acquisitions and project development.
The coming year is likely to be defined by:
In short, the industry is transitioning from recovery to recalibration—focused not on chasing growth, but on building durable value.
For hospitality investment insights, transaction modeling, or market advisory support, contact us.
Our team specializes in hotel underwriting, valuation analysis, and strategic advisory designed to help investors, developers, and operators navigate today’s evolving market conditions.
Contact us to discuss your portfolio strategy, financing outlook, or acquisition pipeline as you prepare for 2026 and beyond.
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.
