"One long-term opportunity is in the hotel sector," says real estate industry expert Peter Slatin, editor of the Forbes/Slatin Real Estate Report. Here, he finds a trio of opportunities among hotel REITs.

"We think it's misleading to suggest that REITs and other real estate companies are due for a big bounceback this year. They have already picked up some, but the economy, including deepening inflation and weakening jobs markets certainly suggest that those gains are fragile and that further gains will not come easily, if at all.

"In other words, the best posture at this moment is to sit tight and watch. Nevertheless, there are a few opportunities out there for strong income and for growth potential.

"The hotel sector has been hit hard this year. Share prices for Diamondrock (NYSE: DRH) and Strategic Hotels and Resorts (NYSE: BEE) suggest that investors have been running away from a bogeyman that isn't really there.

"Both of these companies possess excellent hotel assets at the property and location level that should outperform their markets during a downturn. Again, it's a good time to acquire or supplement positions in these companies.

"Another stock -- one which we rank among the stalwarts of our portfolio -- offers good value at this point in the market: Host Hotels (NYSE: HST).

"The stock has seen multiple erosion and yet is well positioned to profit from an uncertain market. Host looks particularly cheap for a $9 billion owner of high-quality hotel assets."

We note that for those unfamiliar with these specific REITS, Diamondrock owns (but does not operate) hotels in North America, under brands owned by Marriott International, Starwood Hotels & Resorts Worldwide, and Hilton Hotels.

Strategic Hotels and Resorts has interests in hotels in the US, Europe, and Mexico. Its affiliated brands include Four Seasons, Hyatt, InterContinental, and Marriott. Host Hotels operate under the Marriott and Ritz-Carlton brands and are managed by sister firm Marriott International.

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