Third-quarter hotel transaction volume subdued but deal flow expected to increase in 2025

Continuing from prior quarters, hotel buyers and sellers showed little appetite for transactions in the third quarter. The Fed had all but telegraphed a rate cut at their mid-September meeting, and buyers were likely waiting for lower financing costs to materialize. Around $4.3 billion of assets were traded, the second-lowest total volume since mid-2021. Transaction volume has broadly declined since then and hit its lowest level in this cycle in the first quarter of this year.