Lodging/resorts REITs own nearly 1,900 properties in the United States, facilitating the expansion of commerce and making leisure travel possible. The sector was hit particularly hard by the COVID-19 pandemic as both business and leisure travel was curtailed or postponed, resulting in lower demand for hotel space and revenue per available room (RevPAR).
After declining 86% in 2020, RevPAR for U.S. lodging/resorts REITs grew 262% in 2021, with the growth continuing at 36% in 2022.
As reported in Nareit’s T-Tracker, lodging/resorts REITs posted $3.6 billion in funds from operations in 2022, a significant increase from the $519 million reported in 2021. Similarly, dividends paid by the sector rebounded, reaching $636 million in 2022, up from $205 million paid in 2021.