In late July, I told you that real estate investment trusts, or "REITs" for short, were some of the most misunderstood investments out there.
Sadly, it's a misunderstanding that has left hundreds… maybe even thousands… of would-be millionaires starving for badly needed income.
But not us.
Our 10-Minute Millionaire system is designed to sleuth out the best opportunities in the market.
That means it's immune to common market misconceptions that could make you miss out on unworldly gains.
As proof, we added the perfect hospitality REIT to our portfolio – RLJ Lodging Trust (NYSE: RLJ).
With this trade, we tapped into a rare profit opportunity – one that I predicted would be a top performer in our 10-Minute Millionaire portfolio.
And that prediction is starting to ring true.
After experiencing a pullback with the rest of the REIT sector early on, RLJ is on the path to a terrific recovery.
With this trade moving firmly into the green, I want to share the vital lesson this "Dividend Warrior" has to teach…
An Impressive Specimen
Before I breakdown RLJ's recent movement, it's important to remember exactly how this REIT operates.
RLJ owns and operates hotels with a business focus – the mid-tier offerings of big hotel brands like Marriott's Renaissance and Courtyard, Hyatt Place and Hilton's Embassy Suites, Garden Inn and Homewood Suites.
They have limited food and beverage outlets, modest meeting space, and they concentrate on one thing – filling up hotel rooms.
And because they do not try to be a jack-of-a-trades like big, full-service hotels, they can operate with a much trimmer full-time staff. And compared to their larger cousins, these hotels have higher revenue per room and profit margins.
And with smaller buildings (and the accompanying smaller price tags), they also offer the potential for a greater return on investment.
These are the folks that RLJ caters to.
And it's what makes it such an exciting hospitality REIT play.
With a portfolio of over 122 properties, with approximately 20,100 rooms, located in 21 states and the District of Columbia, RLJ is an impressive specimen in the hospitality REIT space.
The Two Aces Up Our Sleeve
When we look at this Bethesda-based hospitality REIT, RLJ has two aces up its sleeve…
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.