With the third-quarter earnings season underway, the early results are drawing investor interest as companies report strong profits. Instead of buying stocks that have already rallied on solid results, it may make more sense to focus on companies that still have room to surprise positively. Earnings beats often serve as catalysts, boosting sentiment and pushing shares higher.

This is likely to be reflected in the earnings releases of Host Hotels & Resorts (HST Quick QuoteHST - Free Report) , Park Hotels & Resorts (PK Quick QuotePK - Free Report) and RLJ Lodging Trust (RLJ Quick QuoteRLJ - Free Report) .

REITs play a vital role in both the physical and digital sides of the economy and often show resilience even in challenging markets. Taking a closer look at the sector’s fundamentals can help investors identify areas of steady performance and long-term growth potential. Here’s a look at where the industry’s strengths lie and how it could still present value amid broader market uncertainty.

The hotel industry, in particular, demonstrated resilient growth in the third quarter of 2026. According to CBRE data, overall hotel occupancy increased 1.8% year over year as demand growth of 3% surpassed the 0.4% rise in supply during the quarter. Revenue per available room (RevPAR) climbed 7% year over year, bolstered by a 4.3% increase in the average daily rate (ADR). Nominal RevPAR rose by 7% year over year, while real (inflation-adjusted) RevPAR growth settled at 3.5%.

The sector faces upward pressure from rising labor costs, as hotel wages grew 4.7% in the third quarter of 2026, outpacing the broader 3.3% national wage growth and inflation of 3.5%.

The Zacks Methodology

Picking the right stock could be difficult unless one knows the proper method. To make the task simple, we rely on the Zacks methodology, combining a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that stocks with a favorable Zacks Rank and a positive Earnings ESP have as high as a 70% chance of delivering a positive earnings surprise.

Here are three Hotel REITs that have the right combination of elements to deliver positive surprises this earnings season.

Host Hotels & Resorts currently has an Earnings ESP of +3.24% and carries a Zacks Rank #3. Over the trailing four quarters, the company’s adjusted funds from operations (AFFO) per share outpaced the Zacks Consensus Estimate on all occasions, with the average beat being 5.63%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Host Hotels & Resorts, Inc. Price and EPS Surprise

Host Hotels & Resorts, Inc. price-eps-surprise | Host Hotels & Resorts, Inc. Quote

Host Hotels is likely to have benefited from its portfolio of luxury and upper-scale hotels across the top U.S. markets and the Sunbelt region. Continued strength in leisure travel demand, healthy group demand and higher room rates, are likely to have supported revenue per available room (RevPAR) growth in the to-be-reported quarter. On its second-quarter earnings call, management indicated that group booking pace for the third quarter had improved from negative low-single digits to positive low-single digits, suggesting a favorable backdrop for group revenues in the third quarter.

The company’s strategic capital allocations are likely to have improved portfolio quality and strengthened its position in key U.S. markets, where it has a greater scale and competitive advantage. This is likely to have given it an edge and driven margin expansion.

Host Hotels is scheduled to release its third-quarter 2026 earnings on Nov. 4, after market close.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1.38 billion, which suggests a 3.8% increase from the year-ago quarter’s reported figure. The consensus mark for third-quarter 2026 AFFO per share is pegged at 38 cents, implying an 8.6% increase year over year.

Park Hotels & Resorts has an Earnings ESP of +0.70% and carries a Zacks Rank #2 at present. Over the trailing four quarters, PK’s FFO per share surpassed the Zacks Consensus Estimate thrice and missed in the remaining period, with the average beat being 5.35%.

Park Hotels & Resorts Inc. Price and EPS Surprise

Park Hotels & Resorts Inc. price-eps-surprise | Park Hotels & Resorts Inc. Quote

Park Hotels is expected to have benefited from its diverse portfolio of hotels and resorts in the third quarter. The company is likely to report positive RevPAR growth, supported by solid group demand and leisure travel demand. Management’s earlier upward revision of its full-year 2026 RevPAR growth outlook to 3-4.5% from 0.5%-2.5% reinforces expectations of continued operating momentum.

Looking ahead, the company stands to capitalize on premium pricing opportunities, portfolio renovations and operational improvements. The company continues to streamline its portfolio through non-core asset sales, with proceeds expected to support debt reduction and improve financial flexibility.

Park Hotels is scheduled to report its third-quarter 2026 results on Nov. 4, after market close.

The Zacks Consensus Estimate for third-quarter total revenues is pegged at $598 million. The consensus mark for the quarterly FFO per share is pinned at 36 cents, suggesting a 2.9% increase year over year.

RLJ Lodging Trust currently has an Earnings ESP of +6.25% and carries a Zacks Rank of #2. Over the trailing four quarters, the company’s FFO per share surpassed the Zacks Consensus Estimate in three estimates and missed on one occasion, with the average beat being 3.75%.

RLJ Lodging Trust Price and EPS Surprise

RLJ Lodging Trust price-eps-surprise | RLJ Lodging Trust Quote

RLJ Lodging’s portfolio of premium-branded hotels in major U.S. urban markets is likely to have benefited from continued strength in business travel, leisure and group demand. Management guided to a meaningful improvement in third-quarter group booking pace, with reservations pacing at 110% of the year-ago period, supporting occupancy and room-revenue growth. Management also expects third-quarter 2026 adjusted EBITDA contribution to be approximately 100 basis points higher than the prior-year quarter.

RLJ’s investment case is further supported by multiple growth drivers, including hotel conversions, high-impact renovations and revenue-enhancement initiatives aimed at increasing food and beverage and other ancillary revenues. The successful ramp-up of previously completed projects and the ongoing repositioning of its portfolio are expected to contribute to operating growth.

RLJ Lodging is slated to report third-quarter 2026 results on Nov. 4, after market close.

The Zacks Consensus Estimate for quarterly revenues is presently pegged at $341.7 million, which indicates an increase of 3.5% year over year. The consensus mark for the quarterly FFO per share is pinned at 32 cents, suggesting an 18.5% increase year over year.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.