When most investors think of “safe” real estate, they think multifamily or triple-net. But in today’s environment—where interest rates remain elevated, inflation lingers, and consumer demand is shifting—there’s a case to be made that hotels are the most responsive and overlooked sector in commercial real estate.
Let’s break it down.
Why Hospitality Now?
- Hotels Adjust to Inflation—Daily
While apartments lock in leases for 12 months and office tenants sign 5–10 year deals, hotels reprice every 24 hours. That means we can adapt to inflation and market demand in real time. - Travel is Surging
TSA traffic is back to pre-pandemic highs. Bleisure (business + leisure) travel is on the rise. Events are in full swing again. And extended-stay is outperforming every major lodging segment. - Institutional Capital is Returning
Private equity is pouring back into the hospitality sector, targeting cash-flowing branded hotels that can absorb rising labor costs while still delivering yield.
That’s exactly what we’ve built with the DeRosa Capital 20 fund – a two-asset portfolio of Hilton-branded hotels in Milwaukee and Houston. These are stabilized, income-producing, and managed by experienced operators.