In this Q&A, Colliers’ Anjee Solanki, National Director of Retail and Practice Groups | U.S., sits down with Mark Owens, Vice Chair and Leader of Colliers’ Hospitality Practice Group, to discuss the state of the hospitality sector following 2025, what conference momentum is really signaling, and how Colliers’ hospitality platform is positioning clients for 2026 and beyond.

Anjee Solanki (AS): We’re entering 2026 after what many would describe as a transitional year for hospitality. Before we dive into specifics, how would you characterize 2025 and your outlook for the year ahead?

Mark Owens (MO): From a Colliers hospitality perspective, 2025 was a strong growth year for our team and transaction platform. We expanded our bench and deepened our capabilities across debt, equity, and investment sales.

Broadly speaking, however, the industry experienced slower transaction velocity. Deal flow was limited and largely concentrated in two segments: very large trophy assets and smaller, local or regional transactions. The most consistent activity occurred in financing, which has been the most active pillar of the business over the past year. Looking ahead, I see momentum building. Liquidity is present, and the foundation is forming for a more active 2026.

AS: There was clear optimism at the Americas Lodging Investment Summit (ALIS), one of the hospitality industry’s largest annual investment conferences, yet many deals still seem to stall between BOV activity and closing. What are you seeing on the ground in terms of real momentum versus a continued wait-and-see approach?

MO: It is important to define transaction activity more broadly. We look at three pillars: investment sales, joint venture equity, and debt and structured finance.

Debt markets have shown real forward movement. Investment sales have been slower, but we are seeing a meaningful uptick in BOV volume compared to last year. What is particularly telling is not just the volume, but who is requesting those BOVs.

We are seeing more lenders, servicers, and receivers ordering BOVs rather than traditional equity investors or borrowers. That shift signals a reset in capital structures and decision-making authority. It suggests that transaction momentum could accelerate as we move further into 2026.

AS: Is that activity concentrated in certain deal sizes or geographies?

MO: In terms of deal size, the increase in BOV activity has been consistent across the board. We are seeing it in smaller assets as well as larger portfolios. The difference is the capital source behind the review.

Geographically, activity is fairly diversified. Some markets are seeing greater focus due to value impairment, but overall, the interest is not isolated to a specific region.

AS: With limited top-line growth and rising expenses, how are construction costs, labor pressures, and underwriting assumptions influencing pricing and seller expectations?

MO: Construction costs remain elevated to a level where new development math often does not pencil nationally. Interestingly, that supply constraint is positive for existing assets. Historically, when supply growth dips below a 2% compound annual rate, we tend to see meaningful RevPAR improvement in subsequent years.

On the underwriting side, nuance is critical. Many markets are experiencing flat or declining NOI due to expense creep and modest top-line growth. But outcomes vary widely by asset and market. Is the property capital constrained, or simply in a temporarily soft submarket? Have taxes or operating costs increased faster than historical norms? Has ownership focus shifted because equity is out of the money?

In some cases, liquidity in capital markets has moved faster than NOI deterioration, allowing refinancing solutions that were not viable 12 months ago. In other cases, value has eroded significantly and requires a reset. Our role is to provide realistic guidance. The right solution may not be a sale. It could be a recapitalization, refinancing, bringing in a partner, or negotiating with a lender. We evaluate all paths forward.

AS: We are seeing growth pockets in certain markets. Are there still opportunities for new projects in targeted locations?

MO: Yes, particularly in high growth submarkets where new demand drivers are coming online. While nationally elevated material, labor, and financing costs have constrained development, there are clear exceptions. In markets with strong corporate relocations, entertainment anchors, or large mixed use developments, new hospitality projects can still make sense. Smaller select service or extended stay hotels also continue to move forward, often supported by creative financing, brand backing, or municipal incentives. The broader takeaway is that development is no longer a universal play. It is highly market specific.

AS: Let’s shift to the investor landscape. Who is driving capital deployment as we look toward 2026 and 2027?

MO: The seller profile has shifted more than the buyer profile. The buying community remains relatively consistent, though with fewer international investors attending conferences compared to prior cycles. That said, we remain in active dialogue with capital sources across Europe and Asia that are targeting U.S. lodging.

Buyer appetite is strongest for deep value add, distressed assets, and note acquisitions. REITs have been more cautious due to public market pressures, but institutions remain active and competitive for well-priced opportunities.

We are seeing three general categories of capital. Dedicated hospitality investors who focus solely on lodging. Traditional institutional investors that have been underweight lodging and are now increasing allocation. And finally financial buyers targeting notes and REO opportunities.

AS: With different buyer pools that attend national events versus regional, does the messaging or strategy shift?

MO: Fundamentally, no. Our strategy is centered on team depth, transparency, and delivering outcomes. Whether we are engaging global institutional capital or regional owner operators, the approach is the same. We leverage our national and international hospitality platform, match the right capital to the right opportunity, and remain candid with clients about realistic outcomes. The difference lies in tailoring capital access. Some team members are deeply connected to global institutions. Others have strong regional relationships. Our structure allows us to flex across those networks.

AS: As interest rates ease and refinancing conditions improve, how is the hospitality practice positioning for the next wave of activity?

MO: Our platform is intentionally built around three pillars: debt, equity, and investment sales. That allows us to pivot as market dynamics shift.

In 2025, debt and strategic recapitalizations were the dominant focus. Moving into 2026, I expect increased investment sales activity, including transactions initiated by lenders and servicers. I also expect significant refinancing volume as debt service coverage improves with lower capital costs. In addition, we anticipate more joint venture activity and recapitalizations, particularly for undercapitalized assets that need fresh equity.

We predict continued momentum through the second half of the year and into early 2027. But our approach remains measured. Every asset and every capital stack is different. Our job is to stay ahead of those shifts and position clients thoughtfully.

AS: Final thoughts?

MO: Liquidity exists. Capital is active. The reset in pricing and capital structures is creating opportunity.

Hospitality is cyclical, but we are seeing constructive signals. The key is flexibility, realistic underwriting, and a platform capable of delivering across the full capital stack. That is how we are approaching 2026 and beyond.

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