Jalazo says that Winston Hotels intend to develop and invest throughout the entire cycle. “At any point in a given cycle, there are different opportunities for investment and development. We can adjust our focus and game plan accordingly as market dynamics shift to capitalize on the opportunities as they present themselves.”

Currently the hotel cycle is in a good spot, characterized by exceptional demand growth. Hotels continue to hit new records in occupancy industrywide, providing a buffer for the next downturn as demand levels are well above previous peaks. “Additionally, supply growth has been limited in the years following the recession and still is well below the levels leading up to previous downturns,” observes Jalazo.

For the foreseeable future the company sees a significant number of hotel investment opportunities for properties that have the right dynamics, Winston said. “While certain markets may be at capacity, especially the top MSAs, there always will be opportunities that offer above average returns. That's where we will concentrate our activity, typically as long-term holders that are better prepared to weather market disruptions.”

As hotel development enters into 2019, it faces multiple headwinds. Land values are increasing in many markets while construction prices are rising due to the growing cost of materials and a shortage of qualified labor. Financing, however, is still available for the right project with a good location, brand and sponsor.

“We plan to capitalize on our extensive and strong relationships with brands, brokers and executives throughout the industry to grow our existing pipeline of projects across the US,” Jalazo noted. “We are taking an aggressive, yet measured, approach to build a unique portfolio of hotels in markets that can stand the test of time.”