Of course, no discussion of sales would be complete without an analysis of cap rates. The consensus from the panelist was that while cap rates on lodging trades are low, they are still better than for other classes of commercial real estate. Koger stated that traditional real estate investors who once shunned the asset class are now gravitating towards hotels because they are searching for "more than a 5% return."

Koger also said that cap rates for lodging properties "are all over the place," and that "to be competitive, investors must look at more than cap rate."

Shah pointed out that with initial cap rates of 4% or 5%, investors are challenged on what their terminal cap rate will be. Noble, said Shah, focuses on value-add opportunities. "If we can't find ways to create value through operations, ultimately, we can't justify our investment based on market demand."

Both representatives from the public lodging sphere--Host and Sunstone--said that it was hard to compete with highly leveraged private buyers. "It's difficult to buy with [only] 50% leverage," Stougaard said.

Henry agreed, but said that "when interest rates increase, private equity will recede."However, Elliott jokingly told the audience not to feel sorry for the public companies because they cannot get "instant gratification" on their acquisitions. If they look at the long term, they will be rewarded for buying, he said.

Stougaard also said that acquisition prices are getting near replacement costs. "Someone is going to say, 'I can build it for that,' " he said.

But Elliott quickly countered, "If you can get the land."

In reference to the prolific amount of lodging buys made by the Blackstone Group in recent years, Desiato asked the panel if Blackstone decided to sell its lodging holdings, would that be an indication that prices have peaked. Elliott said that Blackstone does not get paid until it sells, and therefore, it would not be an indication of the market. The only question would be how Blackstone disposes of its holdings, either piecemeal or through a public exit, Elliott said, adding that "buying behind opportunity funds" would be a good thing.