"We are finally seeing tailwinds in the hotel industry," Driftwood Capital's CEO Carlos Rodriguez Sr. tells GlobeSt.com about the market recovery. He is anticipating a full recovery in the hotel market in the next 12 to 18 months, and it is welcome news considering that the hospitality market was the most badly impacted during the pandemic.

Renewed travel activity and demand for hotels is driving Rodriguez optimistic outlook. "To give you a sense of why we're confident, several of the hotels in our portfolio—mostly leisure-oriented hotels in Sunbelt drive-to markets—are already exceeding 2019 performance metrics, which is really remarkable," he says. "And many of our other hotels are forecasted to exceed 2019 performance later next year."

For now, the travel market is still fragmented. Leisure travel has returned, but business travel will likely take longer to bounce back, according to Rodriguez. He also notes a new phenomenon called bleisure travel, a blend on business and leisure. "With increased flexibility on where and how we work today, people are blending business and leisure travel, extending their stay in hotels a bit longer," he says. "Group business reservations in many instances is pacing better than 2019 but individual business travel will take more time. It really is a market-by-market issue."