Editor’s Note: Today’s article covers a luxury hotel REIT paying a trailing yield of 6.5% — more than quadruple the S&P 500’s average. For a look at where that kind of income discipline leads over decades of consistent dividend raises, Robert Rapier’s Dividend Map tracks 41 essential-service stocks now averaging 33% annual yield on his original investment — with a 923% average total return. See the map →

Las Vegas is back.

I’m not sure it was ever really gone. But the persistent travel lull appears to be easing, with 3.5 million visitors pouring into the town during the month of May. That’s an increase of 68,000 (about 2%) over last year. Most of those guests left behind a bit more money – with gaming revenues climbing 13% for the month.

While June’s figures haven’t yet been released, analysts are pointing towards a further bounce. And preliminary guest counts show 329,000 people flew or drove in for the July 4th weekend, pushing occupancy rates to 88%, versus 85.7% a year ago.

Of course, that uptick in demand typically translates into higher room rates, particularly given the city’s marquee sporting events and sold-out concerts. The latest data shows average nightly room rates on the Strip hitting $226. Multiply that by an average occupancy rate of 87.6%, and you get revenue-per-available-room (RevPAR) of $198.

This key metric has jumped 10%… touching a new record high.

It’s not just Las Vegas. Destinations like Miami, San Diego and Vancouver have all seen sharp upticks. The FIFA World Cup deserves some of the credit, with RevPAR in host cities surging 20% thus far according to data from CoStar – outpacing the expected 13% increase.

But other markets are seeing much of the same. I’m trying to book a hotel room in Memphis next weekend and can’t find too many options below $200. Even the Comfort Inn Downtown is running $274. The more upscale Hilton Garden Inn is asking $487.

It’s shaping up to be a busy summer.

Yes, stubborn inflation and mounting household debt have curbed consumer spending in some areas. But travel clearly isn’t one of them… with 90% of American households planning hit the road or the friendly skies.

Expedia (Nasdaq: EXPE) has a unique vantage point, informed by millions of daily searches and billions of transactional data points. The company expects 2026 to be a “landmark travel year”, driven by everything from a solar eclipse to the 100th anniversary of iconic Route 66.

Pressure from price-conscious travelers has led to a modest dip in domestic hotel room pricing across some markets. But the upper tiers of the lodging space aren’t feeling the same pinch. The Global Travel Collection (GTC), a network of premium, full-service travel agents, continues to see robust demand for luxury properties.

The clientele at this level (be it affluent vacationers or well-connected business travelers) is simply less sensitive to everyday economic pressures. So if travel bookings in general are on the upswing, then luxury lodging would be the sweet spot.

Take Park Hotels (NYSE: PK), which owns the JW Marriott in San Francisco, the Waldorf Astoria in Orlando, the Washington D.C. DoubleTree and about three dozen other resorts clustered in high-density markets. Excluding a South Beach hotel undergoing renovation, the rest of the portfolio generated healthy 5.5% RevPAR growth last quarter.

With solid margins approaching 30%, these hotels are churning out approximately $140 million ($0.70 per share) in quarterly EBITDA. Funds From Operation (FFO) comfortably covers the $0.25 dividend, which equates to a towering yield of 7.2%.

And management isn’t resting here. Park has divested several non-core properties recently and is recycling the proceeds… plowing $80 million into refurbishment projects in New Orleans and Hawaii last quarter.

The stock has had a pretty good run lately. But my favorite in this space has ridden this wave even further – gaining nearly 50% over the past year. It has consistently outpaced its peer group over time. And I don’t think this rally is over.

The real estate trust owns 79 resorts containing 42,000 rooms. Only 1% of the portfolio is classified as midscale – 99% is either upper-upscale or luxury. Think elevated brands like Four Seasons and Ritz Carlton.

The customer base is split 60/40 between leisure and group/business travelers. These discerning guests expect a premium experience and don’t balk at lofty rates. Its two hotels in Nashville are currently getting an average daily rate (ADR) of $339. That figure stands at $565 in Jacksonville, $668 in Maui and a whopping $723 in Miami.

System-wide, the current average daily rate (ADR) is $347.

And that’s just to check in. At these resorts, non-room spending categories account for almost half (40%) of total revenues. There’s valet parking, sure, along with lounges, restaurants, spas, golf courses and other amenities. Including these operations, total RevPAR has shot past $400 per night.

And remember, the company has 42,000 room keys.

Some of that cash goes towards routine maintenance and sprucing projects. But aside from its generous quarterly distributions, shareholders are also treated to a special year-end variable payout that effectively acts as a fifth dividend. Counting this “bonus”, the stock has dished out a healthy trailing yield of 6.5%.

That’s more than quadruple the S&P average… but right in line with our portfolio norm over at High-Yield Investing. I can’t reveal this new ticker symbol just yet out of fairness to subscribers. But join us anytime to get the full scoop.

Nathan’s favorite today pays a trailing yield of 6.5% — more than quadruple the S&P average, as he notes. That’s compelling today. But the real power of dividend investing plays out over decades of consecutive raises. Our colleague Robert Rapier has spent 36 years finding essential-service stocks that keep growing their payouts year after year — until what started as a 3% yield compounds into something most investors don’t think is possible. His Utility Forecaster portfolio of 41 holdings now averages 33% in annual yield on his original investment. Five positions pay over 100% annually on cost. See which 41 stocks are on the Dividend Map →