Hotel Stock Performance

Baird/STR Stock Index Down 2.4 Percent for June 2017

The Hotel Stock Index reported a year-over-year decrease for the first time since October 2016, but is up 10.6% year to date.
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U.S. Hotel Stocks Down 2.4 Percent for June 2017

STR

The Baird/STR Hotel Stock Index decreased 2.4% in June, closing the month at 4,093. Despite its first negative month since October 2016, the index was up 10.6% year to date.

“Hotel stocks were mixed in June with the brand companies much weaker due to underperformance by Hilton and Marriott,” said Michael Bellisario, senior hotel research analyst and vice president at Baird. “Large-cap momentum stocks—like the big hotel brands—experienced a sharp reversal in early June as sentiment in the broader market turned negative. Hotel REITs fared better, particularly as the retail sector remained under pressure and as interest rates remained volatile.”

“Slow and steady seems to be the mantra around the industry here in the summer months,” said Amanda Hite, STR’s president and CEO. “Demand growth has exceeded expectations in 2017, but we expect that continued uncertainty on the macroeconomic front will lead to a slowing. Rapid supply growth in the major markets also will put downward pressure on occupancy levels in the near term. Regardless, we expect a fairly healthy summer season, and international tourism seems to be holding steady despite the strong dollar and the current political environment.”

The Baird/STR Hotel Stock Index for June lagged behind the performance of both the S&P 500 (+0.5%) and the MSCI REIT (RMZ) (+1.5%).

The Hotel Brand sub-index decreased 4.5% to 5,799 from May to June, while the Hotel REIT sub-index grew 2.0% to 1,600 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 30 June 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.



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