The Baird/STR Hotel Stock Index increased 2.1% in July, closing the month at 4,177. Year to date through July, the index was up 12.8%.
“Hotel stocks fell in line with the current industry performance trend of slow but steady growth,” said Amanda Hite, STR’s president and CEO. “Hotel demand growth has exceeded expectations over the past several months, which has been enough to counter weaker than projected hotelier pricing power. We expect moderate performance growth to continue for the foreseeable future.”
“Hotel stocks posted modest gains in July despite mixed second-quarter earnings results and guidance,” said Michael Bellisario, senior hotel research analyst and vice president at Baird. “Fundamentals were a bit weaker than expected during the quarter, especially in June, and sluggish growth continued into July, which is worth keeping an eye on as more markets begin to post negative growth.”
The Baird/STR Hotel Stock Index for July outpaced both the S&P 500 (+1.9%) and the MSCI REIT (RMZ) (+1.1%).
The Hotel Brand sub-index increased 2.5% to 5,944 from June to July, while the Hotel REIT sub-index grew 1.2% to 1,619 during the month.
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 July 2017, the companies that comprised the Baird/STR Hotel Stock Index include: Apple Hospitality REIT, Choice Hotels International, DiamondRock Hospitality Company, Extended Stay America, Hilton Worldwide Holdings, Hospitality Properties Trust, Host Hotels & Resorts, Hyatt Hotels Corporation, InterContinental Hotels Group, La Quinta Holdings, 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 Worldwide Corporation, and Xenia Hotels & Resorts.