Look, I get it. When someone says “hotel stocks,” your mind probably goes straight to overpriced mini-bars, resort fees, and the lingering trauma of getting stuck in a 2-hour check-in line. But when you peel back the layers of overpriced room service and “complimentary” WiFi charges, you’ll find a surprisingly solid investment hiding under all that fluff—hotel REITs.

Yes, REITs (Real Estate Investment Trusts). Before you roll your eyes and mutter something about “boomer investments,” hear me out. Hotel REITs might actually be one of the smartest plays in the market right now, and here’s why.

First, What Even Is a Hotel REIT?

For those of you who don’t spend your free time reading SEC filings, a REIT is basically a company that owns and operates income-generating real estate—in this case, hotels and resorts. Instead of buying an entire hotel, you can own a piece of it through a REIT stock.

And here’s the kicker: REITs have to pay out 90% of their taxable income as dividends. That means instead of hoarding cash, these companies are legally obligated to give you a cut.

Why Hotel REITs Are Looking Good Right Now

1. Travel Demand is Booming (Again)

You’d think people would slow down their spending in a high-inflation, high-rate environment, right? Wrong.

Leisure and business travel are both roaring back, and hotels are jacking up room rates faster than your brokerage account fees. With big events and corporate travel going strong, hotels are printing money, and their owners—aka these REITs—are reaping the benefits.

2. The Sweet, Sweet Dividends

Unlike your favorite speculative growth stock, REITs actually pay you to hold them. They consistently dish out dividends, meaning you’re getting paid even if the stock isn’t mooning.

3. Inflation? Hotels Don’t Care

Inflation is hammering most industries, but hotels? They just raise prices. Unlike retail or tech, where higher costs eat into profits, hotels pass the bill straight to customers—whether they like it or not.

REITs have the ability to dynamically adjust pricing, meaning they’re built to survive inflationary environments.

4. Owning Real Estate Without the Headaches

Think buying physical real estate is a great investment? Have fun dealing with tenants, maintenance calls at 3 AM, and property taxes that make your soul hurt.

With a hotel REIT, you can get all the benefits of real estate exposure without the landlord drama. You own a piece of premium properties, they handle the dirty work, and you collect dividends while doing literally nothing.

Hotel REITs vs. Regular Hotel Stocks: Which One Wins?

Let’s compare:

Feature	Hotel REITs (e.g., $HST, $PEB)	Regular Hotel Stocks (e.g., $MAR, $HLT)
Dividend Payouts	High & consistent	Low or non-existent
Exposure to Real Estate	Yes, direct ownership	No, just a management company
Cyclicality Risk	Lower, diversified portfolio	Higher, more exposed to downturns
Pricing Power	High, due to asset ownership	Limited, since they don’t own properties
Passive Income	Yes, through dividends	Maybe, but less reliable

Hotels like Marriott ($MAR) and Hilton ($HLT) are great businesses, but they’re mostly just management companies—they don’t own the properties themselves. That means they don’t benefit from property appreciation, rental income, or asset diversification like a REIT does.

If you want travel exposure and passive income, hotel REITs win every time.

The Bottom Line: Should You Buy Hotel REITs?

If you’re looking for a smart, income-generating investment with exposure to the booming travel industry, hotel REITs should be on your radar.

They offer:
Strong dividend payouts (unlike most hotel stocks)
Built-in inflation resistance (thanks to pricing power)
Upside from travel recovery without full exposure to cyclicality

Sure, they’re not the sexiest stocks on the market, but if making consistent money sounds better than chasing meme stocks, this is a move worth considering.