Hotel Real Estate Investment Trusts

Add hotel real estate investment trusts to your portfolio
By Linda C. Ray Hotel investment trusts can help to diversify your portfolio with stock in the hotel real estate investment sector that supports the hospitality industry while bringing you good dividends. Find a hotel property investment trust with a management experienced in picking the best hotel investment companies to maximize your returns and spread your risk among hotel investments.

Hotel real estate investment trust firms (or REITs) will sell you ownership of the various hotel properties that they own. As an investor, you will receive regular dividends while the hotel real estate investment trust does not have to pay any taxes on the profits they make. Hotel real estate investment trust firms must pay out at least 90 percent of the profits they see from the purchases. Find a number of ways to profit from hotel real estate investment trust firms.

1. Look for an older, stable hotel real estate investment trusts

2. Take a risk with a new hotel investment group

3. Keep up with the news on your hotel property investment trust and hotel REITs in general.

Stay safe with hotel real estate investing

Research the REIT before you buy into the firm. If you want to be sure that you will receive regular dividends, look for a REIT that has been performing solidly for a long period of time. While there is never a guarantee when investing in stock, you have a better chance of remaining on top, and perhaps earning more, when you go with proven properties.
Try:  Ashford Hospitality has a solid record of performance for its stockholders and works to keep losses at a minimum in down times. Sunstone is a stable hotel REIT that invests and manages upscale hotels and maintains its properties so that they will continue to attract guests.

Look for new hotel investment companies

The bigger the risk, the bigger your return will be. The same goes for REIT investments. If you have the opportunity to buy in early when a new REIT is being formed, you can get a larger piece of the stock and the possibly bigger payoffs. Since many of the new REITS involve overseas properties, it may serve you well to turn to advisors to help you find the latest offerings.
Try:  Look to Four Corners Advisors to get the experienced advice as to the best deals around as well as advice in forming a REIT. Straightline Advisors have experience nationally and globally with hotel properties and can bring a wealth of experience to the process of investing in hotel real estate investment funds.

Watch the news to identify hotel real estate investing opportunities

When you are watching the market, add a view of the real estate investment trust movements to see if you could use a REIT to help diversity your portfolio. After you begin adding REITS to your strategy, you will need a good source to keep up with your investments.
Try:  Keep up with the market and find out about any movement within the REITS you own at REIT Monitor. Hotel News Resource combs the hotel news to bring the headlines that affect the market to readers every day.

• Talk to your current financial advisor to find out which hotel real estate investment trusts are being watched by her clients and which ones are performing well.