Anyone skittish about hotels, perhaps based on the performance of such assets in other recoveries, can rest easy this time around. That's because hotels are poised to do well in 2013 and beyond—on several fronts—according to analysts.

“The industry is in the midst of a strong, multi-year up cycle,” says David Loeb, senior research analyst at Robert W. Baird & Co. “The spread between supply and demand is still growing.”

“I think there's an optimistic view with respect to the hotel industry in 2013,” says Nina Rocket, a partner in the real estate practice with the Oldham law firm. And her words do a commendable job of summarizing the industry's sentiments going into 2013. Data from across the board shows positive views for ADR and RevPAR and, according a presentation given by Arthur Adler, managing director & CEO, Americas of Jones Lang LaSalle's Hotels & Hospitality Group, titled “Transaction Volume, Hotel Values and Outlook,” IRRs and cap rates will further compress in 2013.