Hotel REIT Sector Downgraded To Sell At Ladenburg

Ladenberg Thalman analyst Daniel Donlan has finally pulled the trigger on a downgrade of hotel REITs this week. According to Donlan, investors should now be selling hotel REITs because they face too many potential headwinds in 2016.

“With many economists having recently lowered their 4Q’15 and 2016 assumptions for U.S. GDP growth, commodity prices remaining stubbornly low, the U.S. dollar gaining strength, corporate profits projected to decline for a third consecutive quarter in 4Q’15, and several macroeconomic indicators continuing to weaken or stay depressed; we believe the threat of a recession (both here and globally) is the highest is has been this cycle,” he explained.

Related Link: Is Peter Schiff's Recession Thesis Coming True?

Ladenberg Thalman has downgraded the following six hotel REIT stocks under its coverage to Sell:

• Apple Hospitality REIT Inc (NYSE: APLE)
• Chesapeake Lodging Trust (NYSE: CHSP)
• LaSalle Hotel Properties (NYSE: LHO)
• Pebblebrook Hotel Trust (NYSE: PEB)
• RLJ Lodging Trust (NYSE: RLJ)
• Sotherly Hotels Inc (NASDAQ: SOHO)

Disclosure: the author holds no position in the stocks mentioned.