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7 Hotel and Resort REITs to Buy Now

johnNjohnN
edited May 2019 in The OT Bullpen
7 Hotel and Resort REITs to Buy Now

https://money.usnews.com/investing/real-estate-investments/slideshows/7-hotel-and-resort-reits-to-buy-now

Best hotel REITs to include your portfolio.

Chesapeake Lodging Trust (CHSP)
Summit Hotel Properties (INN)
Pebblebrook Hotel Trust (PEB)
EPR Properties (EPR)
Hospitality Properties Trust (HPT)
Apple Hospitality REIT (APLE)
Xenia Hotels & Resorts (XHR)

Summer can bring a slow down for stocks and investors may look to commercial real estate investment trusts for diversification and stability.

Though lodging and hospitality REITs struggled toward the end of 2018, these REITs have posted a total return of 18.1% so far this year, according to data from Nareit. “Hotel and resort REITs are advertised as relatively stable with predictable occupancy rates and the ability to change rates very quickly,” says Pedro Silva, wealth manager at Provo Financial Services Group in Massachusetts.

He says the hospitality industry’s primary challenge is disruptive innovation like the kind advanced by Airbnb. With that in mind, here are seven hotel REITs to buy that may have staying power.

1. Chesapeake Lodging Trust (ticker: CHSP). CHSP, which invests primarily in upscale and premium hotels, has garnered attention recently after announcing it would be acquired by Parks Hotels and Resorts (PK) in a deal valued at about $2.7 billion. Combined, the two are poised to become the second largest lodging REIT on the market.

Year to date, CHSP has returned 23%, with a yield of 5.3%. That could make it an attractive option if that performance can be sustained after the purchase is completed, says Steven Azoury, financial advisor and owner of Azoury Financial in Troy, Michigan.

2. Summit Hotel Properties (INN). While many hospitality REITs cater to boutique hotels, INN emphasizes brand partnerships with some of the leading hotel chains. Its portfolio includes properties from Hyatt Hotels (H), Marriott International (MAR) and Hilton Worldwide (HLT) in major markets nationwide.

INN earns high marks for its 6% yield, edging out several of its hotel REIT competitors. First quarter revenues edged up slightly over expectations and year to date, INN’s return checks in at 23%. – Rebecca Lake
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