The Role of the Qualified Institutional Buyer in the Hotel Industry

The hotel industry was one of the hardest hit by the COVID-19 pandemic. However, it is recovering and gaining momentum as assets change hands at an accelerated pace. 

The lodging industry is expected to see a full recovery towards the end of 2023. Until then, hotel buyers and owners battle it out to find a fair price for hotels on the market. 

A qualified institutional buyer (QIB) plays a vital role in the investment sector, but how does this manifest in the hotel industry?

What Is a “Qualified Institutional Buyer” for the Hotel Industry?

The real estate industry thrives when properties are turned for a desirable price. Whether it’s the construction of a new building, the sale of residential property or the purchase of commercial infrastructure – real estate contributes to a country’s economic growth.

A qualified institutional buyer (QIB) is a financially sophisticated investor. A QIB is an individual entity that legally requires less protection from issuers than other public investors. Their status is the result of experience, assets under management, or net worth. 

In a nutshell, the position of a QIB can be described as follows.

QIBs benefit greatly from SEC Rule 144A. It provides a safe harbor exemption against the SEC’s registration requirements for securities. In turn, this allows for the public re-sale of controlled and restricted securities, as long as certain conditions are met.

Recent Changes to the SEC’s Rules

A recent amendment to the SEC’s rules has expanded the categories of entities in the definition of a QIB. For example, limited liability companies and RBICS are eligible for qualification if they meet the required investment portfolio threshold. 

QIBs in the Hotel Industry

In the hotel industry, it’s possible for entities that manage hotel franchises, mergers, and acquisitions to qualify as QIBs. As the hotel industry is recovering from the impact of COVID-19, the value of holding a QIB status is becoming more relevant.  

For the past year, the pandemic has pressed pause on hotel development, investment, and acquisition. Now, investors are on the hunt yet again, and QIBs are leading the charge. 

What Does Today’s Hotel Buyer Look Like? 

Unfortunately, the pandemic had a devastating effect on a large percentage of the hotel industry. In 2020, there was a 20% increase in hotel businesses filing for bankruptcy. This figure isn’t expected to settle until late 2023.

However, it’s not all doom and gloom. While the post-lockdown metrics for success may have shifted, the hospitality industry is starting to activate again. Hotel investors, in particular, predict an accelerated trend of increased interest in select-service properties.

Merger and Acquisition

Many investors are looking for bargains in the buyer’s market, hoping to leverage discounts from the pandemic. Acquisitions offer struggling hotels the opportunity to survive and gain access to a market.

Investors that pursue acquisitions or mergers bring a lot to the table. By combining resources, cutting down operation costs, and sharing industry knowledge, the investment potential is strengthened. As a bonus, market competition decreases.

Examples of Recent Acquisitions

There have been several hotels that have changed hands in states across America. Consider the following examples as insight into the current state of the market.

Dreamscape Cos. acquired the Sheraton Grand Nashville Downtown. The acquisition contributed to the company’s goal of reaching $1 billion in acquisitions over the next 24 months.

Five Senses Hospitality acquired the former Baymont Inn & Suites in Frisco. The hotel will operate independently while undergoing renovation, after which it will join a hotel brand. The acquisition formed part of a joint venture with Bedford Lodging, a Dallas-based hotel development company. 

Driftwood Capital, a commercial real estate, development, and lending platform, has acquired the Hyatt Regency Fairfax in Washington, D.C. The plan is to rebrand the hotel with a Hilton flag and be managed by Driftwood Hospitality Management, the investor’s sister company.

New Opportunities vs. Distress Properties

While some investors are looking to acquire hotels, others are interested in purchasing distressed properties on the brink of foreclosure. In most instances, the price is discounted and available at auction. 

For example, a portfolio of U.S hotels owned by Singapore-based REIT, Eagle Hospitality Trust, were successfully sold after appearing on the auction block. 

While some investors look to seize distressed assets, others look for new opportunities entirely. Banks and hotel owners are offering buyers cheaper rates. While this benefits the buyer, it doesn’t necessarily help the hotels in trouble and looking to sell. 

The Rise in First Time Buyers

A QIB can not be an individual investor, regardless of their wealth or financial prowess. However, this has not stopped first-time buyers from entering the hotel investment scene. 

First-time buyers have surprised existing players in the hotel investment game. Individuals from high-net-worth and family-office capital are leveraging the value in real estate assets. 

Hotels reportedly represent a significant portion of investments belonging to high-wealth individuals, especially those that have developed an attraction to luxury hotels post-COVID.

First-time buyers from high-wealth families prioritize a return on investment. Without industry knowledge, these buyers need to surround themselves with hospitality professionals to meet their financial goals.

Buyers Are Motivated and Optimistic

There is overarching optimism about the future of hotel investment.

Hotel investment is gaining momentum and is expected to continue to do so as travel opens up again. A combination of economic recovery, vaccine rollouts, and the deep desire to travel is expected to increase the number of hotel bookings – and the predicted success of such assets.

Analysts have assessed the market and predict a full recovery for hotel investment by 2024. Leading up to this point, large private equity investors are assembling strategies for acquisition and investment. The biggest challenge at this point is finding the sweet spot between what the owners and investors agree is a fair sale price.

Time to Roll Up the Sleeves

At NewGen Advisory, our team is dedicated industry specialists with a finger on the pulse of hotel investment happenings. We’re constantly monitoring the shifting landscape so that we can expertly guide hotel investors and owners on how to maximize return on investment, 

Contact us to find out more about how to buy a hotel or list your asset for sale. 

Marketing Manager

Jourdyn Wigg

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. 

Pipeline & Transaction Assistant

Allysia Howerton

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.

Real Estate Assistant

Josie Numendahl

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.

Senior Accountant

Anthony Lepore

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.

Director of Operations

Nicholas Renckens

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.

Chief of Staff

Nycole Gonsalves

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.

Chief Financial Officer

Michael Lepore

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.

Co-Founder and Principal

Kyle Walker

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.

Co-Founder and Principal

Girish Patel

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.

Co-Founder, Principal and Managing Broker

Dinesh “Dan” Rama

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.

Chief Executive Officer · Chief Legal Officer

Suraj Bhakta

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.