For hospitality, demand and secular trends bode well for long-term outperformance in this sector. Hospitality fundamentals remain strong, with demand rising above pre-pandemic levels and ADRs at record highs. And with slower GDP growth expected to lead to a potential recessionary period, industry analysts still expect hospitality to remain resilient.

Stonehill, a commercial real estate direct lender, completed $1.2 billion in investments for 2022 through loan originations and commercial property assessed clean energy financing (CPACE), primarily in the hospitality and retail sectors, with $813 million and $163 million in investments completed, respectively. The remaining $269 million was distributed across the industrial, land, mixed-use, multi-family, office and senior living real estate sectors.

“Economic volatility coupled with uncertainty surrounding interest rates has severely decreased overall financing availability with capital providers,” said Mat Crosswy, president/principal, Stonehill. “However, Stonehill not requiring capital markets execution has allowed it to remain active and to fill the gap in lending supply.”

Peachtree Hospitality Management (PHM) has formed a long-term partnership with Savannah-based HOS Management (HOS) to operate nine of its hotels, with the potential for additional locations to be managed in the future. The current HOS hotel properties are primarily in the U.S. Southeast and are Marriott, Hilton, and IHG-branded hotels.

“We have a wealth of experience managing hotels and providing best-in-class operations for our valued partners like HOS Management, who have entrusted us with their hotel operations,” said Patrick Short, PHM’S president. “With 25 percent of our portfolio third-party managed, we are committed to protecting the value of the assets and driving bottom lines results for our partners while providing an outstanding experience for our hotel guests.”