Hospitality Properties Trust (HPT): Today's Featured Real Estate Loser

Hospitality Properties ( HPT) pushed the Real Estate industry lower today making it today's featured Real Estate loser. The industry as a whole closed the day up 1.3%. By the end of trading, Hospitality Properties fell 21 cents (-0.9%) to $23.09 on heavy volume. Throughout the day, 1.2 million shares of Hospitality Properties exchanged hands as compared to its average daily volume of 690,100 shares. The stock ranged in price between $23-$23.60 after having opened the day at $23.35 as compared to the previous trading day's close of $23.30. Other company's within the Real Estate industry that declined today were: Vestin Realty Mortgage II ( VRTB), down 8.2%, J.W. Mays ( MAYS), down 6.7%, NTS Realty Holdings ( NLP), down 5.3%, and MHI Hospitality Corporation ( MDH), down 4%.

Hospitality Properties Trust, a real estate investment trust (REIT), engages in buying, owning, and leasing hotels. Hospitality Properties has a market cap of $2.88 billion and is part of the financial sector. The company has a P/E ratio of 20.1, equal to the average real estate industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 1.4% year to date as of the close of trading on Wednesday. Currently there is one analyst that rates Hospitality Properties a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Hospitality Properties as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, ZipRealty ( ZIPR), up 10.4%, Income Opportunity Realty Investors ( IOT), up 7.5%, Bluegreen Corporation ( BXG), up 7.3%, and Thomas Properties Group ( TPGI), up 6.3%, were all gainers within the real estate industry with HCP ( HCP) being today's featured real estate industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the real estate industry could consider iShares Dow Jones US Real Estate ( IYR) while those bearish on the real estate industry could consider ProShares Short Real Estate Fund ( REK).
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