Once the pandemic hit, many investors waited, patiently, for opportunities to buy assets at a discount. There was a widespread expectation that a wave of distressed assets would come to market, as happened following the Financial Crisis. The wave never crashed ashore. In the hotel sector, the absence of reduced pricing has halted investment activity, despite being one of the asset classes hardest hit by the pandemic.

Driftwood Capital added six hotel assets to its portfolio last year, finding value opportunities where it can. "Challenging times present opportunities to unlock value, so that what's driving our investment activities and appetite for hospitality assets in general," Carlos Rodriguez Sr., CEO of Driftwood Capital in Miami, tells GlobeSt.com. "The deep discounts that most industry experts were predicting [in 2020] never fully manifested—but there were some discounts to be had and we were able to capitalize on that."

Rodriguez also notes that hotel assets are popular this year as inflationary pressures have started to swell. "Hotels are a great hedge against inflation, he says. "We adjust prices daily and it's real estate that is able to hold its value through time."