Hospitality Industry Seeing Strong Recovery, but are Hotel REITs Still Overvalued? During the height of the COVID-19 pandemic, hotels and other entertainment-related businesses came to a near halt. Luckily, vaccines, natural immunity and other factors are causing life to return to normal. Hotels are expected to lock in 60% of pre-COVID revenues in FY22. In March 2022, Park Hotels and Resorts Inc’s (NYSE: PK ) 48 consolidated hotels had an occupancy rate of 63.0%, representing a 10% increase since February 2022. Per Business Travel News, hotel rates in 2022 are expected to increase 13% globally year over year. While the recovery is going strong, many hotel real estate investment trusts (REITs) are still overpriced. Fortunately, some private equity investments like Hotel Adeline provide opportunity for growth while being undervalued. Is Host Hotels And Resorts Overvalued? Host Hotels and Resorts Inc. (NASDAQ: HST ) is an established REIT, but it’s somewhat overvalued since its Funds From Operations or FFO per share hasn’t grown much since 2019. FFO measures a REIT’s profitability and uses the below formula.