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Lodging/resorts REITs own, operate, or finance lodging properties such as hotels, resorts, and vacation rentals. These REITs generate income primarily through leasing their properties to hotel operators, who in turn provide travelers with the opportunity to travel for leisure or business. These REITs typically own a diverse portfolio of high-quality lodging assets located in popular tourist destinations and major cities.

Lodging/resorts REITs offer investors exposure to the hospitality sector without the need to directly own and manage properties; and the hospitality industry tends to benefit from economic growth and increased consumer spending.

On a year-to-date basis through the end of March, lodging/resorts is the second-best performing REIT sector on a total return basis, with a return of 5.6%. According to figures from STR, RevPAR (revenue per available room) for the hotel industry rose 4.9%; ADR (average daily rate) rose 4.3%; and occupancy rose 0.6% in 2023.

Over the same period, the sector reported $6.2 billion in FFO and paid $1.6 billion in dividends, up from $5.9 billion and $650 million in 2022, respectively. Further details on the financial performance of lodging/resorts REITs can be found in Nareit’s T-Tracker.

  • 5.6%: Rate of return for lodging/resorts REITs through the end of March
  • 4.9%: Increase in RevPAR for the hotel industry
  • 4.3%: Increase in ADR for the hotel industry

Sector Spotlight

FTSE NAREIT Equity Lodging/Resorts

-Constituents: 12
-One-Year Return: 27.1%
-Three-Year Return: 3.57%
-Five-Year Return: 0%
-Dividend Yield: 3.78%
-Market Cap: $38.95 billion
-Dividends Paid (2023Q3): $396 million
-NOI (2023Q3): $1.4 billion

Source: FTSE, Nareit T-Tracker® | As of March 28, 2024

Below is a list of Nareit member companies from the lodging/resorts sector.