Hotel REITs poised for long-term growth

Leisure travel has rebounded after falling during the pandemic, but hotel REITs are continuing to feel the effects as the Delta variant of the coronavirus depresses business travel. However, Morningstar believes the industry could eventually achieve operating margins and revenues above 2019 levels, meaning that there is “an attractive discount for investors looking for a REIT sector that should produce years of growth above the historical average,” writes Kevin Brown.