Like Airbnb? 3 More Real Estate Stocks to Buy

Airbnb is an incredible growth tale, but it just isn’t the only way to play the surge in travel and leisure need as COVID-19 limits have eased and the busy summer time journey time commences. Although Airbnb is a real estate-concentrated inventory, it isn’t really a real estate investment rely on, or REIT, won’t pay a dividend, and does not truly very own real estate assets.

With that in thoughts, here are a few outstanding real estate shares that could reward enormously from superior travel need in the coming a long time.

Picture supply: Getty Photos.

People have skipped experiences, and this corporation could be a winner

EPR Attributes (EPR 2.03%) is a REIT that focuses on experiential properties. It owns movie theaters, consume and enjoy places (TopGolf is a significant tenant), ski resorts, and experiential lodging. As an example of the latter, it owns the new Margaritaville Resort in Nashville. Its tenants normally signal long-term leases with gradual lease improves constructed in.

EPR sensibly took a crack from advancement expending all through the worst of the COVID-19 pandemic closures but is now ready to get back again to expansion method. The firm sees a $100 billion addressable possibility and has specifically called out gaming attributes, cultural points of interest, and a lot more as thrilling growth routes.

With far more than $1.3 billion in liquidity and an outstanding balance sheet, this $3.8 billion REIT is in a great position to capitalize on options as it sees healthy. And to make it even superior, the organization pays a generous 6.5% dividend produce in monthly installments.

An outstanding rebound and loads of growth potential

Ryman Hospitality Attributes (RHP 1.53%) was severely disrupted by the onset of the pandemic. The firm owns 5 big-scale resort houses less than the Gaylord brand name title that focuses on team gatherings. It also has an enjoyment division that owns various reside efficiency venues and other connected assets.

So much in 2022, Ryman’s resort small business has appear again speedier than administration had predicted. Occupancy at the Gaylord lodges achieved 71% in April, the optimum since the start off of the pandemic, and the common daily room level is now 17% larger than pre-pandemic amounts. Impressively, group journey at the attributes has rebounded to 88% of similar 2019 levels.

The leisure division (formally identified as Opry Leisure Group) is a specially fascinating expansion opportunity. NBCUniversal and Atairos not long ago agreed to buy 30% of the amusement business, and Ryman just closed on the acquisition of Block 21 in Austin. The firm’s Ole Purple dining and amusement chain is building remarkable progress, and there could be a lot far more expansion in retail store.

Us citizens are splurging on journey, and this resort inventory could be a winner

Airbnb has been disrupting journey, but that does not signify that no person desires to remain in high-finish luxury hotels any more. In fact, latest quantities demonstrate that folks are all set to splurge.

Xenia Accommodations & Resorts (XHR 1.67%) owns and operates a portfolio of luxury accommodations below manufacturer names such as Marriott, Kimpton, Fairmont, and additional. It owns 34 accommodations completely, with more than 9,800 visitor rooms.

Equivalent to Ryman, Xenia’s occupancy has rebounded sharply this yr, with 72% of rooms entire in April and typical daily prices 18% greater than equivalent pre-COVID levels. With the Summer season travel period just obtaining underway, it could be the commence of an spectacular rebound for Xenia and the luxury resort business, in typical.

A person word of caution

Though all three of these stand to benefit from vacation demand, it is crucial to place out that these providers (especially the two hotel REITs) are probably to be to some degree cyclical. If a economic downturn hits and client expending slows down, lodge occupancy is possible to undergo in the brief time period.

To be properly distinct, all a few are exceptional, perfectly-operate corporations that should really do just high-quality above the lengthy run. Nonetheless, it’s sensible to count on some volatility in challenging financial instances.