The Hotel REIT Rally Continues

• By the tickerspy.com Staff
• On 11:42 am EDT, Monday September 28, 2009

Hotel REITs are outperforming the market on a triple-digit day for the Dow.

LaSalle Hotel Properties (NYSE: LHO - News) is leading the Hotel REIT sector higher today after its balance sheet earned it a positive mention in Barron's. The newspaper noted that, while the stock has staged a 360% run since March, it may still have room to run. The report also highlighted the company's overweight presence in Washington, D.C., which helped it maintain occupancy during the recession.

Barron's said that LaSalle has "less debt and fatter margins than others," yet four components of the Hotel REITs Index have rebounded to within closer margins of their 52-week high prices.

Hospitality Properties Trust (NYSE: HPT - News) is currently trading within -5% of annual highs, while Diamondrock Hospitality (NYSE: DRH - News) and Host Hotels & Resorts (NYSE: HST - News) are both within -20% of their 52-week peak. Meanwhile, LaSalle is -25% from its 52-week high, slightly below average for the sector according to Barron's.

According to Friday's report by StreetInsider.com, Strategic Hotels & Resorts (NYSE: BEE - News) swung by 10% or more in seven of the prior ten sessions. Those who endured the volatility over the last month have earned 87% for their perseverance.

Elsewhere in the industry, the Hotel Stocks Index is ahead by 1.2% today, after last week sent more than half of its components lower.

Chinese hospitality company Home Inns & Hotel Management (NASDAQ: HMIN - News) is a top performer for the session. Meanwhile Starwood (NYSE: HOT - News) and Wyndham Worldwide (NYSE: WYN - News) are ahead by less than 2%.

As of this writing, the Hotel REITs Index is outperforming the top performing tickerspy REIT Index over the last month, up by 14.2%.

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