Hospitality has found itself between two different trends of deal volume and pricing over a number of quarters, according to an MSCI report.

"With the way that deal volume has been falling, one might expect prices to be similarly challenged, but hotel property prices have generally outperformed commercial real estate in total," they wrote. "The contrary paths of each measure are just another example of the mixed signals that have confused investors in the aftermath of the pandemic."

The current disruption started in 2020 with lockdowns. Consumers and businesses cut back drastically on vacation and travel spending. "The hotel sector was reeling in 2020 given a combination of that shock to demand and the financing shocks from late 2019 on overbuilding fears," MSCI wrote. "The RCA CPPI for the hotel sector fell a cumulative 4.8% from these shocks." RCA CPPI, or Real Capital Analytics Commercial Property Price Index — a relative monthly measurement of commercial property prices.