2024 Year in Review: Katie Vivian, Largo Capital

What noteworthy transactions or deals from this year best exemplified key market trends or shifts? 

This year, all of the hotel transactions I closed were financed either through our life company correspondent lenders or network of CMBS lenders. This highlights a notable shift in the lending landscape, where borrowers who once turned to local banks for financing are now increasingly seeking alternative sources. These lenders offer greater certainty of execution, making them an appealing option in today’s more volatile market. As financing conditions remain challenging, the ability to rely on established, institutional lenders is becoming more crucial for successful deal closures.

What emerging trends will drive investment and development in 2025? 

I expect hotel transaction volume to rise in 2025 as more capital becomes available, driven by pent-up demand and borrowers who, having adjusted to the current rate environment, are now ready to transact. While lending terms will likely remain stable, more lenders will enter the market, and existing lenders may increase their hospitality allocations. This will create strong demand for premium assets and properties with solid cash flow, fueling continued transaction activity.