Blackstone's $279 million acquisition of the Hyatt Regency San Francisco prices in a future that hasn't arrived yet, at a cap rate that only works if you believe the AI boom will do for hotel demand what the tech boom promised and didn't deliver last time.
A small-cap lodging REIT hitting a 52-week high isn't usually headline material. But Chatham's recent moves tell a story about what's quietly working in hotel investment right now... and why the operators running these buildings should be paying very close attention to what comes next.
DiamondRock dumps a 189-room Manhattan leasehold at a 13.3% trailing cap rate and cuts full-year guidance by $5.9 million. The stock slide tells you less about the deal than about what investors think comes next.
March CPI just printed at 3.3% and the Fed is now discussing hikes instead of cuts. If your hotel acquisition was underwritten assuming SOFR would be 150-200 basis points lower by now, the refinancing math isn't tight... it's broken.
