Paul Breslin’s views on REITs’ lackluster results

Paul Breslin, Managing Director of Horwath HTL Atlanta, USA, was interviewed by Kerry Medina of HotelManagement.net for her latest article: Sharing economy contributes to REITs’ lackluster results.

Nevertheless the sector maintains a core of stalwarts, said Paul Breslin, managing director at Horwath HTL. “If you look at the fundamentals of hotel REITs themselves, they’re excellent investments, particularly Host Hotels, Ashford Hospitality Trust and Sunstone Hotel Investors,” he said, adding that revenue-per-available-room growth is an inaccurate indication of a given hotel stock’s growth or contraction because it does not account for market cap value.
But he also acknowledged that several lodging REITs haven’t fared well this year and partly attributes that to the end of a strong run and the start of a renovation cycle that “is costly and doesn’t show well on [profit-and-loss] and balance sheets” while also noting the sharing economy’s impact on hotel business. “There are headwinds in major markets like New York, Los Angeles, Chicago and Miami where the shared-economy model is causing stress on compression,” he said.

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