Key takeaways from ALIS 2026

The 2026 Americas Lodging Investment Summit (ALIS) gathered top hospitality leaders to dissect where the lodging sector is heading amid dynamic economic forces. Walker & Dunlop’s Senior Managing Director Jay Morrow and Senior Director Carter Gradwell shared six key insights shaping hospitality investment in the coming years. From evolving capital structures to shifting demand drivers, here’s what attendees learned.

Credit markets are reshaping transaction momentum

Over the last three years, improving credit markets have extended liquidity for borrowers and delayed widespread distress. However, the environment is shifting: buyers now benefit from enhanced financing terms, enabling them to close the bid/ask spread more effectively. As borrowing becomes more accessible, and the capitally intensive nature of hotel ownership turns the calendar for another year, transactional activity and potential of reigniting deal flow is emerging.

Our take: With financing terms improving, buyers are gaining confidence, and we expect deal activity to pick up. Investors positioned to move quickly will benefit from closing power that narrows the bid/ask gap and derisks hotel investments and value-add driven business plans.

Capital stack reallocation is underway

With borrowing costs improving across both base rates and credit spreads, especially in light of forward yield curve projections, the high-yield environment that supported mezzanine and preferred equity plays is fading. Instead, capital is moving toward equity-backed acquisitions. Investors are rebalancing risk and return expectations, favoring control through ownership over layered structures.

Our take: Structured capital transactions have been idiosyncratic and there is a shift towards equity-driven acquisitions. As borrowing costs decline, capital is flowing to direct ownership. Investors with equity ready to deploy are well positioned to capture value in a recalibrating market.

Not all markets are created equal

There is no “macro” and market differentiation is intensifying. Institutional investors are cautious in assets lacking yield within gateway markets like Washington, D.C., Los Angeles, and Portland due to challenging fundamentals. Meanwhile, other cities face heightened regulatory risks yet present their own opportunities. Core CBDs in Tier II markets - Denver, Austin, and Atlanta among them are also seeing demand soften and competition increase. Strategic market selection has never been more critical.

Our take: Market selection and street corners are more nuanced than ever. Institutional investors must weigh regulatory risks and shifting fundamentals. We’re advising clients to take a hyper-local lens, focusing on markets with demand resilience and supply constraints that also possess dynamic new development.

Leisure demand remains the industry’s tailwind

The Leisure Travel Indications Index hit its highest point since the pandemic, reaffirming the strength of leisure travel. Luxury and leisure-driven properties, particularly those in desirable seasonal locations, are poised to outperform. Flexible work dynamics continue to expand demand across non-traditional periods, offering hotel owners longer booking windows and improved rate stability.

Our take: Leisure travel shows no signs of slowing, in those markets where top line has not been given back off of perceived 2023/2024 peaks, and luxury properties are leading the way. Investors should target markets benefiting from flexible work trends and travel seasonality shifts. These assets offer durable cash flow and long-term upside.

New supply remains constrained

High construction costs, still roughly 30 percent above pre-pandemic levels, combined with labor and insurance volatility, are slowing the pipeline for new developments. Only the most well-located and differentiated projects are breaking ground. As a result, existing high-quality assets may see improved pricing power and performance, particularly in undersupplied markets.

Our take: Development headwinds mean existing or recently delivered assets in top locations are more valuable than ever. We anticipate increased investor appetite for stabilized, well-positioned properties, especially those with room for renovation, repositioning, or operational upside.

Group demand is surging—and 2026 will be supercharged

Group travel has returned with full force. National convention bookings are up year-over-year: four percent for 2025 and six percent for 2026, with even stronger growth projected through 2028. Markets with updated convention infrastructure stand to outperform. Adding to the demand is the 2026 FIFA World Cup, projected to generate the equivalent of 10+ Super Bowls in national economic impact. Host cities and gateway markets are preparing for a meaningful revenue boost from this unprecedented global event.

Our take: Group travel’s comeback is real, and the 2026 World Cup will amplify momentum across key markets. Investors and operators should prepare for above-average compression in convention and host cities, with strong tailwinds for ADR and occupancy through 2028.

Hospitality requires agility

ALIS 2026 made it clear: hospitality investors and developers must stay agile as the market pivots. Credit conditions, capital shifts, and demand catalysts like the World Cup are creating both risks and windows of opportunity. With strategic market selection and a deep understanding of the evolving capital stack, stakeholders can position themselves to thrive in this next phase of growth.

Walker & Dunlop’s hospitality experts are here to help navigate what’s next. Reach out to learn how our capital markets and advisory teams can help you capitalize on this evolving landscape.