Hotels/Resorts REITs

Hotel REITs own and manage hospitality properties such as hotels and resorts. Some hotel REITs invest in a variety of hospitality properties, making it possible for them to serve a wide variety of customers from vacationers to business travelers. Some hotel REITs take another approach, choosing to specialize in one type of property. For example, a hotel REIT may only focus on the luxury market.

The hotel industry is very cyclical and highly sensitive to changes in the economy. When the economy suffers and consumers need to cut costs, vacations and unnecessary travel are among the first things to be cut. Additionally, the coronavirus pandemic has taken a toll on the hotel industry, as travel has diminished immensely.

Large hotel REITs include Apple Hospitality REIT, Inc. (NYSE: APLE), Host Hotels and Resorts, Inc. (NASDAQ: HST) and Sunstone Hotel Investors, Inc. (NYSE: SHO).