Keepin' It Real  

Economics, Housing, & Commercial Real Estate Analysis

apartment REITs
homebuilders ETFs
single family rental REITs
manufactured housing REITs
student housing REITs
data center REITs
Cell tower REITs
net lease REITs
industrial REITs
storage REITs
office REITs
mall REITs
REIT Preferreds and Bonds
hotel REITs
Timber REITs
healthcare REITs
REIT ETFs
Billboard REITs
shopping center REIT
High-Yield Real Estate ETFs
Real Estate CEFs
Casino REITs
cannabis REITs
prison REITs
mortgage REITs
real estate crowdfunding
REIT Portfolio Strategy
REITs Taxes
1/1
Housing100logo.png
ETF express.png
  • Alex Pettee, CFA

Hotel REITs: Dividend Cut Bloodbath

Updated: Sep 10, 2020

  • Hotel REITs have been hit harder than any real estate sector during the ongoing coronavirus pandemic and resulting economic lockdowns, plunging more than 50% in 2020.

  • Dividend cuts abound. Every hotel REIT slashed its dividend over the last quarter, but even that might not be enough to stay afloat as the industry faces an existential crisis.

  • "No vacancy" becomes "no occupancy." Following a record year of occupancy and revenues for the hotel industry in 2019, hotels are expecting a mind-blowing 50% plunge in revenues this year.

  • A rebound in economic activity since April has thrown a lifeline to several highly levered REITs teetering on the edge, but a "second wave" of the pandemic could be the death knell.

  • Hotel ownership is a tough, capital-intensive business even in the best of times. Outside of several well-capitalized hotel REITs, value-seeking investors should be wary of catching the falling knife.

To continue reading, click here to visit Seeking Alpha!

REIT Forum HOYA AD.png