November 14, 2023

Staying Power – Reinventing Lodging Real Estate Investment Trusts (REITS)

Reinventing REITs to Unlock Value and Opportunity

Over the past 50 years, Lodging real estate investment trusts (REITs) have underperformed, on average, against other REIT categories as well as the S&P 500. To compete for scarce capital in an environment characterized by high interest rates and uncertainty, Lodging REITs must reinvent themselves to be both optimized investors and growth enablers.

How Can REITs Navigate Economic Uncertainty?

To stay relevant in a competitive and challenging marketplace, Lodging REITs need to define, articulate, and implement a clear strategy and program to better navigate changing market, customer, and economic dynamics to drive performance across the metrics that matter most to investors.

A&M helps REITs establish operating models that work towards achieving common goals with measurable results including funds from operations (FFO), earnings before interest, taxes, depreciation, and amortization (EBITDA) and net asset value.

How Can A&M Help REITs Initiate Their Reinvention Journey?

A&M provides practical and actionable guidance for REIT leadership to navigate economic challenges, drive higher returns, find value-generating opportunities and become more attractive to investors in five steps: 1) Market and portfolio opportunity analysis, 2) strategy and investment plan development and execution, 3) capability and workforce analysis, 4) operating model and organization redesign and 5) technology modernization.

Learn more below about the in-depth ways A&M can help redefine and reinvent your REIT strategy today.
 

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Read the other reports in this series:
In the fourth installment of the Staying Power series, Sooho Choi breaks down how the COVID-19 pandemic changed global spending in the broader Travel and Hospitality industry landscape and what organizations have done to bounce back to recover lost revenue and market share.
The current state of travel is a mixed bag and hotel companies must make up for the gap and account for the uncertainty ahead. They have to find new approaches to operating their business, and this is where embracing automation comes into play. 
In the second installment of our Staying Power series, written by A&M's Travel, Hospitality & Leisure practice, we explore the power of data, analytics and AI on the hotel workforce.  
A&M's Travel, Hospitality and Leisure practice presents a series on Staying Power, a series on how hotels can profitably deliver outstanding service and experiences to guests as they navigate the current market. Learn more in our first article on addressing labor challenges without sacrificing service.
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