XHR - Wells Fargo tracks lodging REITs benefiting as COVID-19 vaccination rolls on

Wells Fargo has an unconventional look at lodging REITs: Deciding who benefits most directly from the ongoing vaccination of the public against COVID-19. After a typically low-demand winter, the bank expects a re-acceleration of lodging demand in March - "led by leisure travelers but with increasing business transient and group demand as the percentage of the U.S. population that has received its COVID-19 vaccinations increases." But with 1.7% of the U.S. population fully vaccinated (and counting), it's now tracking lodging REIT exposure since "the early re-acceleration in lodging demand will likely be driven by drive-to guests." So far, the REITs with the greatest weighted exposure to a fully vaccinated population are Pebblebrook Hotel Trust (PEB), Xenia Hotel & Resorts (XHR), and RLJ Lodging Trust (RLJ). And Wells Fargo says while the number of residents fully vaccinated is important to watch since "they could contribute to near-term incremental heads in beds,"

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Wells Fargo tracks lodging REITs benefiting as COVID-19 vaccination rolls on