Lodging DSTs: Why Hotels Can Be a Smart Component in a 1031 Replacement Property Portfolio
Lodging DSTs can be a valuable diversifier and income source within a 1031 replacement portfolio because hotels returns are driven by different forces than apartments, industrial or other real estate asset classes. When investors think about passive replacement properties, they usually start with the predictable categories: Multifamily Industrial Self-storage Medical Senior housing Those categories often feel “safe” because they are steady, familiar, and easier to underwrite. Lodging can add a different kind of value. In the right portfolio, hotels can improve diversification and potentially enhance income. The key is selection, sizing, and sponsor quality. A lodging DST is [...]