Analysts Expect Continued Recovery for U.S. Hotel REITs

U.S. hotel and resort real estate investment trusts (REITs) are projected to see continued normalization in growth in 2023-2024, following post-pandemic travel-related tailwinds. According to Visible Alpha consensus, in 2023-2024, revenue per available room (RevPAR) is estimated to be up +6% year over year on a median basis across nine leading U.S. hotel and resort REITs.

After a significant revenue drop in 2020, U.S. hotel and resort REITs have been steadily recovering. In 2023, analysts expect most of these companies to see RevPAR surpass their pre-pandemic levels, though the pace of growth is projected to slow down. While the industry’s occupancy rates have also been on a recovery trajectory, in 2023, they are expected to remain below the levels seen in 2019.

Host Hotels & Resorts (NASDAQ: HST), the largest U.S. hotel REIT by market capitalization, is expected to see an occupancy rate of 71% in 2023, lagging behind its 79% level reached in 2019. A similar trend is expected across other U.S. hotel REITs, including Ryman Hospitality Properties (NYSE: RHP), Apple Hospitality REIT (NYSE: APLE), and Park Hotels & Resorts (NYSE: PK), among others.

For comprehensive insight into the various factors influencing the broader Hotel REIT industry and where investors should look to find an investment edge, we recommend referring to our Guide to Hotel REIT Industry KPIs.

Sector: Financials
Industry: Hotel REITs
Tickers: HST_US, RHP_US, PK_US, APLE_US