### Question
How does Regulated Investment Companies and Real Estate Investment Trusts define lodging facility?


### Answer
Under *26 U.S.C. § 856*, **lodging facility** is defined as:

> a—


(I) hotel,


(II) motel, or


(III) other establishment more than one-half of the dwelling units in which are used on a transient basis

#### Citation:
  - *26 U.S.C. § 856*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART II-REAL ESTATE INVESTMENT TRUSTS**

