Shares in hotel and lodging real estate investment trusts are outperforming the general stock market, boosted by stronger group and corporate travel as well as the possibility of interest rates dropping.

Stock prices for hotel and lodging REITs have risen 29% since equities hit a low on Oct. 27, Bloomberg reported. Meanwhile, the S&P 500 Index rose 23% over that same period while real estate industry shares overall increased only 19%.

Park Hotels & Resorts Inc., a REIT with 43 hotels and resorts throughout U.S. markets, has seen the biggest increase since October, jumping 53%, according to Bloomberg. Park Hotels and Resorts stock price was $17.19 on Monday morning, up from $10.70 a year earlier.

Park Hotels & Resorts’ rise beat most of the Magnificent Seven — technology stocks that account for about 28% of the entire S&P 500 market capitalization — with the exception of Nvidia Corp., an AI chip maker, which saw its shares jump Monday ahead of its annual developers’ conference.

Park Hotels & Resorts caters to business travelers via its Hilton properties, and is enjoying a lift in corporate travel that is boosting the entire sector. Hilton Worldwide Holdings Inc., Hyatt Hotels Corp. and Marriott International Inc. are also trading near record highs, Bloomberg reported.

Hotel demand is expected to grow 1.8% in 2024, CoStar reported. High interest rates have led to a staggering of supply growth, meaning occupancy should grow by an estimated 1%, CoStar said.

The industry is sensitive to the cost of borrowing, so signs that the Federal Reserve will start lowering interest rates this year could offer another boost to hotel and resort landlord stocks, according to Bloomberg.

Yet, inflation can be a good thing for hotels when it comes to setting room rates.

“Hotels can capture the benefits of inflation more quickly than a lot of other sectors within real estate just given the fact that they price daily and have the shortest term leases,” BMO Capital Markets analyst Ari Klein told Bloomberg.

When leisure travelers flooded resorts due to pent-up demand after pandemic-era shutdowns, dynamic pricing meant properties could book guests at premium rates.

Future bookings are trending positive as well, said Defiance ETFs CEO Sylvia Jablonski, who oversees Defiance’s hotel airline and cruise exchange-traded fund.

“The economic landscape is improving, consumer travel rates are growing, and jobs and wages remain steady, which can continue to support the trend,” Jablonski told Bloomberg.