Baird/STR Hotel Stock Index drops 4 percent in June
The Baird/STR Hotel Stock Index fell 4.0 percent in June to a level of 4,863. Year to date through the first half of 2018, the stock index was down 0.5 percent.
“Hotel stocks took a breather in June as both the hotel brands and hotel REITs significantly underperformed their respective benchmarks,” said Michael Bellisario, senior hotel research analyst and VP at Baird. “A stronger U.S. dollar, a lack of a material RevPAR growth reacceleration in May and June, and lower interest rates were all relative headwinds for hotel stocks during the month.”
“Macro-economic forces seemed to have influenced investors and overshadowed the healthy performance metrics we have reported,” said Amanda Hite, STR’s president and CEO. “We don’t expect a bearish trend to develop, however, the busy summer travel months should bolster growth from already peak performance levels.”
The Baird/STR Hotel Stock Index lagged behind the performance of the S&P 500 (+0.5 percent) and the MSCI US REIT Index (+3.8 percent).
The Hotel Brand sub-index fell 4.3 percent from May to 7,118. The Hotel REIT sub-index decreased 3.3 percent to 1,769.
As of 1 June 2018, Wyndham Hotels & Resorts replaced Wyndham Worldwide in the Hotel Stock Index and brand sub-index.