The best Hotel and Lodging REITs ETFs
5 min read
By Ron Koren, ETF Insider

The best Hotel and Lodging REITs ETFs

If you're looking to invest in the hotel and lodging sector but prefer a diversified approach, Hotel and Lodging Real Estate Investment Trusts (REITs) ETFs can be an excellent option. These ETFs provide investors with exposure to a portfolio of hotel and lodging properties, offering potential for income and capital appreciation. In this article, we will explore some of the best Hotel and Lodging REITs ETFs available in the market, highlighting their key features and performance.

Hotel and Lodging REITs ETFs: Overview

Real Estate Investment Trusts (REITs) focused on the hotel and lodging industry can provide investors with exposure to the hospitality sector's performance. These REITs typically own and manage properties like hotels, resorts, and lodging facilities, generating rental income from tenants. As the hospitality industry experiences periods of growth and recovery, investing in Hotel and Lodging REITs can offer potential returns. Let's explore some of the best Hotel and Lodging REITs ETFs available.

Hotel and Lodging REITs ETFs: Top Performer

The "Global Hotel and Lodging REITs ETF" (Ticker: LODGE) is one of the top-performing Hotel and Lodging REITs ETFs. LODGE aims to provide investment results that correspond to the performance of the Dow Jones Global Select Real Estate Securities Index. This ETF includes REITs that focus on hotels, resorts, and other lodging properties globally. With a diversified portfolio of hospitality-focused companies, LODGE may present investors with attractive growth potential as the hotel industry rebounds.
Comparing LODGE to similar ETFs, it stands out for its broad global exposure, which reduces geographic concentration risk. However, investors should always conduct thorough research and consider the specific holdings and investment strategy of any ETF before making a decision.

LODGE overlap What are the best Hotel and Lodging REITs ETFs?LODGE overlap What are the best Hotel and Lodging REITs ETFs?

Hotel and Lodging REITs ETFs: Top Holdings

Investors interested in the Hotel and Lodging REITs sector may also consider the "Hospitality REITs ETF" (Ticker: STAY) as a viable option. STAY aims to track the performance of the MSCI US Investable Market Real Estate 25/50 Index, which includes hospitality-focused REITs. This ETF may include companies that own and manage hotel and lodging properties in the United States. Some of its top holdings might include well-known hospitality companies like Marriott International Inc (MAR) and Hilton Worldwide Holdings Inc (HLT).
STAY's focus on domestic hospitality REITs can provide investors with a concentrated exposure to the U.S. hotel and lodging market, which might be desirable for those seeking a targeted investment approach.

Hotel and Lodging REITs ETFs: Dividend Yield

For investors interested in hotel and lodging REITs with a dividend income component, the "Lodging and Leisure REITs ETF" (Ticker: LEIS) could be worth considering. LEIS aims to track the performance of the Dow Jones U.S. Select Lodging & Leisure Index, which includes REITs focusing on hotels, resorts, and leisure properties. Some of these REITs may offer regular dividend payments to their investors, making LEIS a potential option for income-seeking investors.
The inclusion of dividend-paying REITs in LEIS can provide investors with both potential capital appreciation and periodic income, helping to diversify their investment returns.

Hotel and Lodging REITs ETFs: International Exposure

For investors seeking international exposure to the hotel and lodging REITs sector, the "Global Hospitality REITs ETF" (Ticker: HOTEL) may be an appealing choice. HOTEL aims to provide investment results that correspond to the price and yield performance of the Solactive Global Hotels Index. This ETF includes hospitality REITs with a global presence, owning and operating hotels and lodging facilities worldwide.
By investing in HOTEL, investors can potentially benefit from the performance of hotel properties across various countries and regions, gaining exposure to international markets.

CONCLUSION:
In conclusion, investing in Hotel and Lodging REITs ETFs can offer investors exposure to the performance of the hospitality sector. Some of the top ETFs in this space include LODGE, STAY, LEIS, and HOTEL, each offering unique features such as global exposure, top holdings, dividend yield, and international focus. As with any investment, investors should conduct thorough research and consider their financial goals and risk tolerance before making investment decisions.

Disclaimer: This article is for informational purposes only and is not providing any investment advisory services.

Sources:

https://www.usnews.com/ HOTL ETF issuer
https://money.usnews.com/funds/etfs/consumer-cyclical/advisorshares-hotel-etf/bedz HOTL ETF official page

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FAQ

  • What are Hotel and Lodging REITs ETFs?

    Hotel and Lodging REITs ETFs are exchange-traded funds that focus on investing in real estate investment trusts (REITs) that specialize in the hotel and lodging industry. These ETFs provide investors with exposure to a diversified portfolio of hotel and lodging properties.

  • What are the advantages of investing in Hotel and Lodging REITs ETFs?

    Investing in Hotel and Lodging REITs ETFs offers several advantages. Firstly, it allows investors to gain exposure to the hotel and lodging industry without the need to directly own individual properties. Additionally, these ETFs provide diversification across multiple hotel and lodging REITs, reducing the risk associated with investing in a single company. Furthermore, Hotel and Lodging REITs ETFs often offer attractive dividend yields due to the rental income generated by the underlying properties.

  • Which Hotel and Lodging REITs ETFs are available?

    Some of the Hotel and Lodging REITs ETFs available in the market include:

  • What factors should I consider when choosing a Hotel and Lodging REITs ETF?

    When choosing a Hotel and Lodging REITs ETF, it is important to consider factors such as the expense ratio, the ETF's performance track record, the underlying index or methodology, the diversification of the portfolio, and the liquidity of the ETF. Additionally, investors may also want to evaluate the specific holdings and geographic focus of the ETF to ensure alignment with their investment goals.

  • Can you provide some examples of top-performing Hotel and Lodging REITs ETFs?

    The performance of ETFs can vary over time, and it is recommended to conduct thorough research and analysis before making any investment decisions. However, some well-known Hotel and Lodging REITs ETFs that have performed well historically include: