REIT - Hotel & Motel
This industry owns and manages hospitality properties, ranging from luxury resorts to business-class hotels, deriving revenue primarily from room occupancy and guest services.
Why it exists
Hotel REITs exist to monetize short-term lodging demand tied to travel and experience.
Why it’s necessary
Tourism, business travel, logistics, and remote mobility all require transient accommodation.
Key components
Branded and independent hotels
Franchise agreements
Revenue management systems
Asset-level operations
How to evaluate businesses
RevPAR growth, occupancy rates, brand mix, operating leverage, and capital needs are central. This is one of the most cyclical REIT subsectors.
How the industry could be improved
Dynamic pricing via AI, automation of staffing, smart-room technology, and greater flexibility between hospitality, short-stay housing, and co-living.