The hospitality sector is mostly associated with the hotel industry, however, many other asset classes fall into this sector, including large scale resorts, spas, timeshares as well as gaming and casinos. Hospitality assets, and in particular hotels, are differentiated by the amount of services offered, price levels, and size. It is important to make note of a key distinction between operators and owners in this sector. Many well known hotel brand names do not own the building in which the hotel operates, but rather contract their management and brand name to the owner for a fee. Much of the hospitality industry brands are consolidated under a few large corporations. For example, Hilton Hotels owns the Hilton, Hampton Inn, Doubletree, Embassy Suites, and Homewood Suites brands. Each brand is targeted at a different customer with different amenities and price points. The profitability measures for the industry include two key ratios, “revenue per available room,” or RevPAR, and "average daily rate," or ADR. RevPAR is calculated by multiplying the number of rooms available times the average room price in dollars, times the occupancy percentage. The occupancy percentage can vary by the length of time you are measuring. Hotels do not maintain constant prices for rooms, therefore, ADR is an important metric as well. Room prices for one location can vary depending on the day of the week, time of year, or can even depend on events and attractions in the surrounding areas.

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