Baird/STR Hotel Stock Down 3.6% in August
U.S. Hotel Stocks down 3.6% in August
The Baird/STR Hotel Stock Index fell 3.6% in August to a level of 5,856.
“Hotel stocks pulled back and underperformed in August with Hotel REITs the laggards,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The Hotel REITs posted their worst month of the year due to weak second quarter earnings reports, reduced full-year guidance expectations, and several weather-related impacts across the country during the month; relative performance would have been even worse if not for Hersha’s take-private announcement during the last week of the month.”
“U.S. hotel performance showed improved year-over-year growth in August, as RevPAR rose 1.7% over 2022 because of a 2% increase in ADR,” said Amanda Hite, STR president. “Overall, summer performance was lower year over year as more Americans traveled internationally, and inbound travel to the U.S. remained at a deficit. We expect stronger performance in the coming months as group and conference demand accelerates to its annual peak.”
In August, the Baird/STR Hotel Stock Index fell behind the S&P 500 (-1.8%) and the MSCI US REIT Index (-3.2%).
The Hotel Brand sub-index dropped 2.2% from July to 11,242, while the Hotel REIT sub-index decreased 9.1% to 1,027.
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.
As of 31 August 2023, the companies that comprised the Baird/STR Hotel Stock Index included: Apple Hospitality REIT, Ashford Hospitality Trust, Chatham Lodging Trust, Choice Hotels International, DiamondRock Hospitality Company, Hersha Hospitality Trust, Hilton Inc., Host Hotels & Resorts, Hyatt Hotels, InterContinental Hotels Group, Marriott International, Park Hotels & Resorts, Inc., Pebblebrook Hotel Trust, RLJ Lodging Trust, Ryman Hospitality Properties, Service Properties Trust, Summit Hotel Properties, Sunstone Hotel Investors, Wyndham Hotels & Resorts, and Xenia Hotels & Resorts.
Categories: Trends