The Compounding Cost of Customer Churn
Why this matters
Hospitality has separated by chain scale and demand segment, with luxury and resort outperforming and select-service holding pricing power on a leaner cost base. New construction starts remain at multi-decade lows, which has supported in-place RevPAR and made conversions of soft-branded flags an increasingly active part of transaction velocity. For sponsors with operational expertise, the sector continues to offer one of the more compelling income-plus-appreciation profiles available across CRE.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- Disclosed hospitality deal value tracked in November 2026: $562M across 6 reported transactions. All Hospitality coverage →
Computed from Real Estate Trail’s own tracked coverage
Small, recurring customer losses compound over time, forcing businesses to acquire ever more new customers just to maintain growth, making preventable churn far costlier than it appears.
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