The Rich Somers Report

Hotel Investing Insights & Predictions: He's the National Director for Hospitality Market Analytics CoStar | Jan Freitag E436

Dec 13, 2025
Jan Freitag, National Director of Hospitality Analytics at CoStar with over 20 years of expertise, dives into the current hotel investment landscape. He reveals the K-shaped recovery in hospitality, where ultra-luxury hotels thrive while midscale struggles. Jan discusses how Airbnb regulations boost hotel prices, the effects of climate risk on coastal property investments, and why limited supply is key to long-term performance. His insights into institutional investors’ strategies and the shifting demand landscape make this a vital listen for anyone interested in hotel investing.
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INSIGHT

K-Shaped Hotel Recovery

  • The hotel industry is K-shaped: ultra-luxury is booming while economy segments struggle.
  • Luxury demand persists because high-net-worth households disproportionately drive discretionary spend.
INSIGHT

Population Drives Market Winners

  • Follow population migration to spot outperforming markets; 'smile' markets from California to Texas have led growth.
  • Rapid local supply growth, like Nashville, can depress RevPAR despite population gains.
INSIGHT

Airbnb Limits Lift Hotel Pricing

  • Tight short-term rental rules can boost hotel ADRs by removing alternative supply.
  • New York shows ADR rising after Airbnb restrictions reduced Manhattan supply.
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