REITs continue to prove they are a force to be reckoned and their purchasing volume is anticipated to reach $5 billion this year. REITs target high-quality, branded assets in primary markets.

Rounding out the top three buyer types is foreign capital. Offshore investors are expected to account for a projected $3 billion in transactions in 2014. Asian investors were the most active in 2013, and for 2014 buyers from the Middle East are in the lead.

Resorts were hit hard by the downturn since the demand fundamentals for two of its largest guest segments—leisure travel and group business—took longer to recover. However, resorts are proving worth the wait as sales transactions for the asset class reached $2 billion during the first five months of 2014. Recent high-profile resort transactions include The St. Regis Bal Harbour Resort in Miami which sold for $213 million in January 2014, the Ritz-Carlton Kapalua which sold for $142 million in February 2014 and the Parrot Key Resort in Key West which sold for $100 million in May 2014.

“During the first quarter, resort assets notched nearly 30% of total transactions as consumer confidence continues to make gains,” says Adler. “Competition is high as resorts under construction make up a mere one percent of the supply of resort properties in the U.S., meaning the sector will experience strong gains in RevPAR as demand continues to grow.”

High-quality asset transactions have dominated much of 2014's market activity. The average price per room of trades during the first five months of the year is up 15% from the same prior-year period, driven by continued RevPAR increases. This year marks the fifth consecutive year of RevPAR growth since the downturn, and the momentum shows no signs of slowing.

Secondary markets like Denver, Nashville and Phoenix have experienced exceptional RevPAR growth, all posting double-digit increases thus far in 2014.

“As 2014 marks the fifth consecutive year of RevPAR gains, we believe that the lodging industry is solidly in the middle of a long-term upward trajectory,” Adler concludes. “We believe that this cycle will extend longer than the nine-year run that took place from 1992 through 2000. As we look toward the next two quarters of 2014, we anticipate investors will continue making investments in the lodging sector to capitalize on the sector's strengthening recovery. Strong debt capital markets, plenty of equity capital and more available product have led to positive investor sentiment and rising liquidity.”