Despite the challenges in the market, hotel owners and developers, like Noble Investment Group, see room for successful hotel development this year. However, success in 2023 will require managing uncertain economic environments, increasing costs, rising interest rates, and changing capital markets and investor expectations. Hotel companies will need to employ strong investment strategies, prudent leverage, strong brand relationships, and the ability to utilize their scale and resources.
While some factors are easing the constraints on hotel construction, new hotel projects are facing challenges earlier in the development process.
