Dividends. It’s the single most attractive and impressive thing about hotel REITs.
Even with apparent risks, hospitality REITs are significant assets to have and a terrific addition to an individual’s portfolio. Deciding which REIT stocks to invest in. These REITs own and operate some properties, including full-service and limited-service motels and extended stay hotels. Approximately 90 percent of table income is distributed to shareholders. The stocks are generously well above the greater market average.
Read on to learn the names of hotel REITs you may want to consider for investment:
Host Hotels and Resorts: Host Hotels and Resorts tend to focus on upscale and luxury hotels, such as Hyatt Regency Maui Resort and Spa and the Ritz-Carlton Naples.
The company is the largest REIT in the market, with no others nearing it regarding sheer numbers. They have more financial flexibility and reach than their competitors, and they actively seek out acquisitions and investments. They’ve maximized returns by purchasing and selling off properties. They can own recession-vulnerable properties because of its offset by the wealth of their net asset value.
Apple Hospitality REIT: Apple chooses to invest in “select service” hotels, such as those offering fitness centers, pools, and continental breakfasts –amenities that aren’t available to consumers at bargain hotels. With that said, these are not resorts and high-end hotels, they are select-service.
Hilton and Marriott brand names properties are substantially owned by Apple Hospitality REIT, which owns more than 238 properties, representing tens of thousands of guestrooms. Apple has been identified as a risk-averse hotel REIT. A part of this can be attributed to the fact that select-service hotels outperform discount and luxury hotels when the economy falters.
They also have reasonable operating expenses. The select service hotels also tend to be newer, thus more appealing to those engaging in investing and reinvesting. More than that, this REIT succeeds because of the strength of brand names under its umbrella, as well as property growth, leading to higher margins.
Hospitality Properties Trust: HPT isn’t merely a hotel REIT that owns 323 hotels, it also possesses hundreds of travel centers located near interstate highways –this adds a spot of diversification to their portfolio. These centers sell fuels and food, as well as a daily basis.
The hotels they own include mid-range hotels, select-service, full-service, and extended-stay hotels.
To learn more about these REITs, check out “3 Top Hotel REIT Stocks to Consider Buying Now.”