As hotel REITs move upmarket, costs per room move up as well

Hotel real estate investment trusts, or REITs, have been active buyers of hotel properties over the last decade. Public and private REITs bought around 240 properties for around $31 billion since 2015. Over this period, the price per key for their acquisitions has increased and, over the last four years, stood at around $580,000 per key. This is a $200,000, or 58%, increase from the average price paid between 2015 and 2020.