These REITs are Better Valued than Hotel Stocks

Considering the way hotel stocks react to various economic news, the sector may not be an advisable investment in the current situation. With Hyatt (NYSE:H) down over 3% today, it might be safer and more profitable to invest in REITs according to Jack Hough, of the WSJ, who recommends that investors consider well-managed REITs as an alternative to investing in hotels.

According to Hough, though mortgage rates are at historic lows, and the Shiller Home Index is down nearly a third in five years, bargain hunting is getting better and better. And looking at REITs, which have declined nearly 19% since July (opposite 14% for the S&P 500), a very real opportunity presents itself.

But the key is proper selection of the REIT. Here, the names suggested are Corporate Office Properties Trust (NYSE:OFC), AvalonBay Communities (NYSE:AVB), and Equity Residential (NYSE:EQR).