Hotel REITs

In the US, there are roughly 5 million hotel rooms across 50,000 individual hotel properties. The hotel ownership business is a highly fragmented industry with hotel REITs owning less than 5% of all hotel assets across the United States. Hotel occupancy tends to peak in August and bottom in January with guests paying an average daily rate of roughly $125 per night.

Properties are typically segmented into "full-service" or "select service" categories and in general, public REITs portfolios tend to be concentrated in the higher-quality end of the spectrum and own primarily full-service hotels in coastal urban markets or resorts.