The hotel sector has enjoyed a vigorous recovery but that may be changing with hotel deal volume dropping 70% year-over-year, according to CoStar Group. Just as worrisome for future trends, the high interest rates have taken a toll on new development in this sector as builders pause on planned projects.  

As an example, construction on a hotel-casino Dream Las Vegas fully stopped, according to local media cited online due to the developers' stalled financing plans, which caused them to owe tens of millions of dollars for the project. The project, developed by Shopoff Realty Investments, broke ground last year on Las Vegas Boulevard. The developer said construction will begin again once the terms of the financing are finalized.

And according to another report this past April, construction appeared stalled at 255 West 34th Street, a 33-story hotel towel in Midtown New York City, due to a $481 million loan default by a former developer.