An uptick in hotel supply has experts seeing a cooldown for the hotel industry in 2016, and lodging REITs will see the impact of that head on.
Here's Bisnow's breakdown of the five biggest lodging REITs by market cap, which could see the biggest slowdown if the sector cools off.
Host Hotels & Resorts
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Market Cap: $12.09B
Stock Price: $16.08/share
Founded: 1993
The largest lodging REIT on the list, Host's market cap more than triples its closest competitor in the asset class. Some investors are seeing rough times ahead for the lodging giant—Host's shorted shares just increased by almost 10%, and its stocks are on a downward trend.
Hospitality Properties
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Market Cap: $4.08B
Stock Price: $26.74/share
Founded: 1995
Hospitality Properties owns 302 hotels and owns or leases 193 travel centers throughout the US, Canada and Puerto Rico. Good news for the REIT recently—it just announced that shareholders will see an increase in their dividends (albeit only by 1 cent).
Apple Hospitality REIT
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Market Cap: $3.29B
Stock Price: $18.89/share
Founded: 2007
Apple Hospitality—though not quite as prolific as Steve Jobs' tech company with the same moniker—is a big player in the lodging REIT world, owning 129 hotels. Institutional investor Vanguard Group more than doubled its holdings in the REIT during Q4, adding 12 million shares for a total of $467M in Apple Hospitality stock.
Sunstone Hotel Investors
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Market Cap: $2.98B
Stock Price: $13.57/share
Founded: 1995
Sunstone hotel investors has stakes in 29 hotels with 13,845 rooms mostly in the upscale segment of the lodging world. The REIT is looking good as of late, up nearly 8% on the year despite the market turmoil in early 2016.
RLJ Lodging Trust
Market Cap: $2.81B
Stock Price: $22.16/share
Founded: 2000
Originally founded by Bob Johnson, better known for his creation of BET, RLJ Lodging Trust is now headed by CEO Thomas J. Baltimore (pictured). News broke on Monday that institutional giant Century Capital continued to hold its $1M stake in the company through Q4 '15.
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