Sluggish RevPAR growth, softening forward group booking growth, and increasing costs have Goldman cautious on the hotel REITs, says analyst Stephen Grambling.

In this, Goldman is making a distinction between REITs (think DRH, LHO, HST, PEB, SHO, PK) and C-Corps (think MAR and HLT). The C-Corps, says Grambling, have the ability to "maintain their earnings algorithms."

Grambling and team downgrade Pebblebrook (PEB -2.9%) and LaSalle (LHO-1.8%) to Sell as their large exposure to urban markets puts them most at risk to a further slowdown in corporate spending.

READ FULL ARTICLE HERE