Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the lodging & resort reits industry, and their latest annual reports show $180.6 billion of combined revenue and a median operating margin of 20.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Lodging and resort REITs own hotels and resorts and keep room revenue, which resets daily, so their results swing with travel demand. Operating results depend on occupancy, average daily rate and costs of managers and labor. The first numbers to compare across companies here are revenue per available room, occupancy and average daily rate and hotel EBITDA margin.
Key Industry Metrics
- Revenue per available room: Room revenue divided by all available rooms, combining occupancy and price. It is the main hotel gauge and moves with travel demand each quarter.
- Occupancy and average daily rate: The share of rooms filled and the average price paid. Rising rate with falling occupancy suggests pricing is outrunning demand, and the reverse suggests discounting.
- Hotel EBITDA margin: Hotel profit before interest, taxes and depreciation as a share of revenue. High fixed costs mean margins swing with revenue, and labor inflation compresses them.
- Funds from operations per share: Net income with depreciation added back and sale gains removed, divided by shares. It is the main REIT earnings measure, though hotel results swing more than leased types.
- Capital expenditure needs: Money required for renovations and upkeep to keep rooms competitive. Hotels need ongoing spending, which reduces cash available for dividends.
Primary Macro Drivers
- Leisure and business travel: Occupancy and room rates follow how many people travel, so leisure and business demand shows in revenue per available room.
- Group and convention demand: Conventions and meetings fill rooms in weekday periods, so group bookings move occupancy and average daily rate.
- Labor costs: Hotels need many staff, so wage increases lower hotel EBITDA margin unless rates rise.
- Interest rates: Rates affect borrowing cost and required yields, shown in FFO per share and valuation.
Major Risks
- Travel downturns: Rooms are sold daily, so a drop in travel hits revenue quickly, shown in revenue per available room and occupancy.
- Labor inflation: Wage rises squeeze margins unless room rates rise to match them, which shows in hotel EBITDA margin and in operator cost commentary.
- Capital spending for renovations: Hotels need periodic renovations to keep rates, so spending takes cash, shown in capital expenditure needs.
- Operating leverage: Fixed costs mean a small revenue drop cuts profit by more, shown in hotel EBITDA margin.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Lodging & Resort REITs Filers in the SEC Record
110 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6798. Their latest fiscal years end between 2022 and 2026, and together they reported $180.6 billion of revenue. Median revenue growth over the prior year was 2.9%. Median operating margin was 20.0% and median net margin 10.0%. Median total liabilities were 54% of total assets, and 77 of 110 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Welltower Inc. | $10.8 billion | 35.6% | n/a | 8.6% | FY 2025 |
| American Tower Corp | $10.6 billion | 5.1% | 45.5% | 24.7% | FY 2025 |
| Equinix Inc | $9.2 billion | 5.4% | 20.0% | 14.6% | FY 2025 |
| Prologis, Inc. | $8.8 billion | 7.2% | 49.6% | 37.9% | FY 2025 |
| Weyerhaeuser Co | $6.9 billion | -3.1% | 10.6% | 4.7% | FY 2025 |
| Iron Mountain Inc | $6.9 billion | 12.2% | 16.9% | 2.2% | FY 2025 |
| Simon Property Group Inc. | $6.4 billion | 6.7% | 49.9% | 84.3% | FY 2025 |
| Host Hotels & Resorts, Inc. | $6.1 billion | 7.6% | 14.0% | 12.5% | FY 2025 |
The 8 largest of 110 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Lodging & Resort REITs guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Lodging & Resort REITs industry?
Key performance indicators for the Lodging & Resort REITs industry include: Revenue per available room, Occupancy and average daily rate, Hotel EBITDA margin, Funds from operations per share, Capital expenditure needs. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Lodging & Resort REITs industry?
The Lodging & Resort REITs industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Lodging & Resort REITs industry?
The primary risks for Lodging & Resort REITs companies include: Travel downturns, Labor inflation, Capital spending for renovations, Operating leverage. Investors should assess each company's exposure to these factors and its track record of navigating them.