The hotel sector has been dramatically impacted by the COVID-19 pandemic and is currently in a liquidity and capital markets crunch. Although the equity investment market remains relatively frozen, with wide bid-ask spreads persisting, senior and subordinate debt markets are becoming more active. Our long-term outlook for the hotel sector is positive, and we believe investors that provide liquidity to the currently disrupted hotel market can achieve outsized returns. Specifically, we believe that long-term consumer spending patterns and the k-shaped nature of the current economic recovery suggest a near-term recovery in leisure travel. Business travel may take longer to recover, but flexible working arrangements, and the “digital nomad” workforce, are likely to boost hotel demand, helping to mitigate headwinds from virtual meetings.