Mom-and-Pop Buyers Challenge Institutions as Miami Hotel Market Shifts

Written by:

Rudi Davis

Date:

16 Sep 2025

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The landscape of hotel buyers in 2025 defies conventional wisdom, with well-capitalized local operators competing alongside institutional players for select opportunities, according to a leading Florida hospitality broker.

“Across the board, a lot of people are well capitalized. I mean, our private Mom and Pop… Some people have been waiting for this moment for a while,” says Suraj Dalal, Partner at Kabani Hotel Group, challenging assumptions about who’s positioned to acquire properties in today’s market.

The New Buyer Landscape

According to Dalal, the current market features an unusually diverse mix of active buyers, from local operators to institutional players. He points to companies like Baywood Hotels as examples of institutional buyers who have “been really patient with their capital on the sideline” but are now “starting to get more aggressive with acquisitions, at least in the Florida market.”

Cautionary Tales from Recent History

Not all strategies have proven successful, however. Dalal points to one particular group that miscalculated market timing: “One group that may have been a little bit too aggressive were these newly formed syndications in the middle of the hype that were converting to multi-family from hotels, a lot of those guys got wiped out.”

This example, Dalal suggests, demonstrates how even well-funded buyers can stumble without proper market understanding and timing.

Transaction Volume Tells the Story

The shifting buyer landscape is reflected in transaction volumes. Dalal notes that after peaking at about $300 million in 2022, volume dropped to $190 million in 2023 and $120 million in 2024. However, 2025 is showing signs of increased activity, with approximately $150 million in transactions by mid-year.

Solutions and Market Outlook

While the market remains challenging, Dalal sees opportunities for prepared buyers. “I don’t think it’s a question of if it’s gonna happen. I think it’s more of a question of when,” he says regarding market recovery.

For potential buyers, Dalal emphasizes the importance of understanding local market dynamics, noting significant variations even within Florida. He points out that some regions, like the panhandle, have seen values drop 40-50% from 2022 peaks, creating vastly different opportunity sets across markets.