Hotel REITs: As Airbnb Readies IPO, A Look At Industry Fundamentals

June 20, 2019 | Hoya Capital

Hotel REITs: As Airbnb Readies IPO, A Look At Industry Fundamentals Uncategorized Jun 19 Written By For full report, click here to view Seeking Alpha! The US hotel industry had another banner year of record occupancy and strong demand growth in 2018. Despite trade tensions and market volatility, 2019 is off to a solid start. As it has been since 2015, supply growth remains elevated, particularly in the business travel segments and urban markets.

REITs have disproportionate exposure to hotels in these weaker segments. As a result, hotel REITs have produced disappointing returns over the past five years compared to the more diversified hotel operators. Recent results suggest REITs may be turning the corner. Construction spending on hotels has finally cooled after several years of double-digit growth. Hotel REITs appear attractively valued within the REIT sector, paying yields above 5%. The long-awaited Airbnb IPO appears to be imminent.

As domestic growth slows, the dire projections of Airbnb crushing the traditional hotel industry have not come to fruition. Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Record Week For Stocks On Easy Monetary Policy And Uptrend In Housing Data Next Next Real Estate Daily Recap: REITs Jump After Fed Signals Dovish Path