Whether by planes, trains or automobiles, last year Americans took roughly 1.7 billion leisure trips and 450 million business trips domestically.

Although alternative accommodations like home swapping and homestays are rising, according to a 2014 poll by statista.com, most Americans still prefer full-service or budget hotels. In fact, since 2009 hotel occupancy rates improved along with the U.S. economy, hitting an all-time high for the first quarter, up 3.1% to 61.1% compared to 2014.

More hotel stays mean more travelers passing through rest stops, which bodes well for GIE’s, Hospitality Properties Trust (NYSE: HPT).  This real estate investment trust (REIT) owns about 291 hotels, with 44,107 rooms and suites, and 184 rest stops across the United States, Canada and Puerto Rico. The REIT leases its properties to other companies through long-term agreements. Well-known brands like Carlson, Hyatt, Marriott and Wyndham manage and operate the hotel properties, paying HPT a leasing fee.

HPT’s rest stops typically have parking spaces for 189 tractor-trailers, as well as cars, and have a full-service restaurant. The company leases the rest stops to TravelCenters of America and its subsidiaries under the TravelCenters of America or Petro Shopping Centers brand names.

Protected Cash Flow

Although it’s a REIT, HPT operates as a net lease business because most of its hotels are managed under portfolio agreements that are secured by deposits or guarantees. This arrangement means that cash flow is shielded if property managers can’t cover minimum rents. HPT also offers additional returns because it collects a percentage of property revenues over a threshold amount.

Most of the properties are combined under a single long-term contract, with all but two of HPT’s properties leased this way and the smallest combination lease covering 11 hotels. Leases usually have initial terms of 15 years or more. At the end of 2014 HPT’s weighted average term for all of its agreements was 15.3 years—giving it a great deal of stability.

For example, 68 of its Marriott hotels, such as Residence Inn, Courtyard and TownePlace Suites, are under a combination agreement that expires in 2025. Ninety of its InterContinental hotels, such as Staybridge Suites, Candlewood Suites and Crowne Plaza, are leased until 2036.  The leases for 144 Travel Centers of America properties last until 2022, and 40 Petro Shopping Centers are rented until 2024.

HPT occasionally sells or exchanges properties but its current portfolio hasn’t changed significantly in the past eight years.

Growth Prospects

With properties in 44 states, HPT is geographically diversified so it should benefit from overall U.S. economic growth. Higher average daily and occupancy rates drove hotel-operating revenues to $1.47 billion in 2014—a 12.5% increase and double what those revenues were in 2010. Total revenues for 2014 grew to $1.73 billion from $1.08 billion. As the travel industry bounced back, the company steadily increased its dividend distribution to $1.95 in 2014, compared to $1.80 in 2010.

Although HPT doesn’t need portfolio growth to increase distributions, the company does pursue acquisitions and recently announced it will buy 30 properties from TravelCenters of America for $397 million. The acquisition should generate annual net cash rental income of roughly $30.2 million including percentage rents.

Ultimately, the fate of hospitality REITs is tethered to economic growth, as occupancy rates rise alongside an improving economy. As the graph shows, U.S. hotel occupancy rates and revenue per available room have climbed steadily since 2009. According to statista.com, hotel occupancy rates should grow another 0.7 percentage points this year to 65.1%. Average revenue per available room in the United States will likely rise to $79.06 from $74.28 this year.

The company’s 7% yield is a point higher than its closest peers: Ashford Hospitality Trust, which yields 5.7%, and LaSalle Hotel Properties yielding 5.1%. The higher yield is reflected in HPT shares, which have a price-to-earnings ratio of 23, a premium compared with Ashford’s 4.2 P/E and LaSalle’s 18.5 P/E. And while HPT has a stable beta of about 1, the other two companies are more volatile at about 1.5.

With HPT, you won’t get high-flying price appreciation and dividend growth but rather an attractive, sustainable distribution that steadily grows. Buy Hospitality Property Trust up to $38.