DiamondRock Hospitality Company (DRH), Chatham Lodging Trust (CLDT): 3 Hotel REITs to Buy Now

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Thanks to RevPAR increases, acquisitions, and organic growth, revenue growth should clock in at more than 60% for FY 2013. Analysts project almost 20% revenue gains for FY 2014 as well. Summit clusters its hotels in mid-tier cities near venues that draw travelers, such as sports stadiums and college campuses. It also offers a consistent set of amenities that business & leisure travelers demand — for example, every room has free wi-fi. Operating cash flow has grown some 400% since the end of FY2010, and the REIT sells near book value.

In conclusion…

The hotel industry is continuing to recover from the recession, and has additional revenue increases on the horizon given strong demand. The recent pullback in this sector offers a good entry point right now for long term investors that want to add some real estate holdings to their portfolios. Income investors looking for yield at reasonable prices would also be well served by “checking into” these three hotel REITs.

Bret Jensen owns shares of SUMMIT HOTEL PROPERTIES INC, (NYSE:INN) Chatham Lodging Trust, and DiamondRock Hospitality Company. The Motley Fool has no position in any of the stocks mentioned.

The article 3 Hotel REITs to Buy Now originally appeared on Fool.com and is written by Bret Jensen.

Bret is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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