Baird/STR Hotel Stock Index rises 0.2% in July
“Both the hotel brands and hotel REITs underperformed their benchmarks again in July, but the sub-indices were up slightly in absolute terms during the month,” said Michael Bellisario, senior hotel research analyst and VP at Baird. “While investors were less focused on changes in interest rates and the U.S. Dollar in July relative to the prior month, a continued lack of a material RevPAR growth reacceleration has caused investor optimism to moderate a bit, which has weighed on hotel stock price performance recently.”
“Market activity was more aligned with performance results in the sector,” said Amanda Hite, STR’s president and CEO. “With Q2 earnings calls underway, it is clear that the hotel industry, after taking a ‘breather’ in 2016 and 2017, is now reaccelerating its pace of growth. Reaching 100 consecutive months of RevPAR growth in June was just another outward sign of strong fundamentals. We hear from our clients and data partners that group demand is healthy, and continued strength in the corporate sector leads to confidence in demand and ADR growth. We will present an upward revision to our forecast later this month at the Hotel Data Conference, which is yet another signal of a robust industry.”
The Baird/STR Hotel Stock Index fell behind the performance of the S&P 500 (+3.6%) and the MSCI US REIT Index (+0.5%).
The Hotel Brand sub-index increased 0.3% from June to 7,138, while the Hotel REIT sub-index grew 0.1% to 1,772.
About the Baird/STR Hotel Stock Index and Sub-Indices
The Baird/STR Hotel Stock Index was set to equal 1,000 on 1 January 2000. Last cycle, the Index peaked at 3,178 on 5 July 2007. The Index’s low point occurred on 6 March 2009 when it dropped to 573.
The Hotel Brand sub-index was set to equal 1,000 on 1 January 2000. Last cycle, the sub-index peaked at 3,407 on 5 July 2007. The sub-index’s low point occurred on 6 March 2009 when it dropped to 722.
The Hotel REIT sub-index was set to equal 1,000 on 1 January 2000. Last cycle, the sub-index peaked at 2,555 on 2 February 2007. The sub-index’s low point occurred on 5 March 2009 when it dropped to 298.
The Baird/STR Hotel Stock Index and sub-indices are available exclusively on www.HotelNewsNow.com. The indices are cobranded and were created by Robert W. Baird & Co. (Baird) and STR. The market-cap-weighted, price-only indices comprise 20 of the largest market-capitalization hotel companies publicly traded on a U.S. exchange and attempt to characterize the performance of hotel stocks. The Index and sub-indices are maintained by Baird and hosted on Hotel News Now, are not actively managed, and no direct investment can be made in them.
As of 31 July 2018, the companies that comprised the Baird/STR Hotel Stock Index included: Apple Hospitality REIT, Chesapeake Lodging Trust, Choice Hotels International, DiamondRock Hospitality Company, Extended Stay America, Hilton Inc., Hospitality Properties Trust, Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, LaSalle Hotel Properties, Marriott International, Park Hotels & Resorts, Inc., Pebblebrook Hotel Trust, RLJ Lodging Trust, Ryman Hospitality Properties, Summit Hotel Properties, Sunstone Hotel Investors, Wyndham Hotels & Resorts, and Xenia Hotels & Resorts.
This communication is not a call to action to engage in a securities transaction and has not been individually tailored to a specific client or targeted group of clients. Research reports on the companies identified in this communication are provided by Robert W. Baird & Co. Incorporated, and are available to clients through their Baird Financial Advisor. This communication does not provide recipients with information or advice that is sufficient on which to base an investment decision. This communication does not take into account the specific investment objectives, financial situation or need of any particular client and may not be suitable for all types of investors. Recipients should consider the contents of this communication as a single factor in making an investment decision. Additional fundamental and other analyses would be required to make an investment decision about any individual security identified in this release.
Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 3,500 associates serving the needs of individual, corporate, institutional and municipal clients. Baird has more than $203 billion in client assets as of Dec. 31, 2017. Committed to being a great place to work, Baird ranked No. 12 on FORTUNE’s 100 Best Companies to Work For in 2018 – its 15th consecutive year on the list. Baird is the marketing name of Baird Financial Group. Baird’s principal operating subsidiaries are Robert W. Baird & Co. Incorporated in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations. For more information, please visit www.rwbaird.com
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com