11 Best REIT Stocks To Buy Under $10

3. RLJ Lodging Trust (NYSE:RLJ)

Share Price as of October 26: $9.04

Number of Hedge Fund Holders: 23

RLJ Lodging Trust (NYSE:RLJ) is a self-advised and self-administered Maryland real estate investment trust. The firm owns premium-branded, rooms-oriented, high-margin, focused-service, and compact full-service hotels. The firm’s hotels operate under big global brands including Residence Inn by Marriott, Courtyard by Marriott, AC Hotels, Moxy Hotels, Hilton Garden Inn, Hyatt Place, and Wyndham.

RLJ has a high-quality portfolio with an attractive growth profile. Properties remain geographically diverse and concentrated in major urban areas and dense suburban markets providing multiple demand generators by business, leisure, and other travelers. Simultaneously, these locations provide high barriers to entry due to high construction costs, the density of these markets, and high underlying real estate values.

Despite a challenging environment during the second quarter, RLJ Lodging Trust (NYSE:RLJ) reported a Portfolio Comparable RevPAR of $157.30, up 2.6% year-over-year. It also purchased the 110-room Hotel Teatro in Denver which is expected to generate an estimated 10% yield upon stabilization. Furthermore, the firm announced increase of quarterly dividend to $0.15 per share.

Therefore, RLJ Lodging Trust (NYSE:RLJ) is positioned well to benefit from the upside in urban demand. With a promising urban-centric portfolio, acquisitions, and a future pipeline of conversions, the REIT has multiple channels of growth.