Hotel, Mall REITs Continue To Be Risky Economic Recovery Bets

in #money4 years ago

Investing in real-estate stocks has been quite challenging since the outbreak of the COVID-19 pandemic last March. While commercial real-estate teetered on the brink of collapse, home prices surged to record highs in the U.S. as people in lockdown looked for bigger homes and a suburban lifestyle.

That contrast sent the shares of hotels, retail and office landlords tumbling, while home builders and companies managing home rentals soared. But that equation has changed during the past quarter as investors, with their eyes on the post-COVID economic recovery, began to snap up the beaten down stocks of mall operators and global hotel chains.

The shares of Simon Property Group (NYSE:SPG), America's largest mall operator, surged more than 40% since the approval of emergency-use vaccines in the U.S. Similarly, Marriott International (NASDAQ:MAR) has surged more than 30% during the past three months.

Simon Property Group Weekly Chart.

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