Last year, REITs in the lodging/resorts subsector were one of the worst performers, significantly trailing the returns of both equity REITs as a whole and standout property types like residential, self storage, and infrastructure. While there has been a rebound this year in REITs, this has been broad-based. In fact, hotels and lodging are, once again, underperforming the FTSE NAREIT All Equity Index yet again this year. This has not been the place to be.
While lodging and resorts have often carried some of the higher cap rates in the commercial property sector, the spread