But the boom in the hotel sector isn't just limited to new builds. Older four- and five-star hotels and boutique venues are being snapped up quickly and at steep prices.

In the past 12 months alone, Cambridge's landmark Radisson Hotel sold for $30 million to a joint venture partnership between Burlington-based Nordic Properties and Morgan Stanley; the Back Bay Hilton was acquired for $110 million by Highland Hospitality Corp.; and Hersha Hospitality Trust, which has been particularly active in the Greater Boston market, picked up five suburban properties. An Indian hotel firm also is reportedly in negotiations to buy the Ritz Carlton on Arlington Street at a price that could well be worth more than $800,000 a room, an industry source tells GlobeSt.com.

"There's more money chasing hotels right now," Stephen Kindl, vice president of the Northeast and Mid-Atlantic for the Plasencia Group Inc. tells GlobeSt.com. He notes that a strong return for investors, fueled by rising room and lodging rates, has made hotels a much sought after investment nationwide.

Boston's market, however, is particularly strong, he adds, because the city is among the top investment markets in the country. "There aren't that many transactions that occur in full service hotels on an annual basis," Kindl notes, "but when they do occur, Boston is one of the primary markets and because they don't occur too often, you get strong pricing."

Pricing should remain strong in the future, he adds, even with the addition of newer upscale product.