The Baird/STR Hotel Stock Index fell 4.0% in June to a level of 4,863. Year to date through the first half of 2018, the stock index was down 0.5%.
“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%) and the MSCI US REIT Index (+3.8%).
The Hotel Brand sub-index fell 4.3% from May to 7,118. The Hotel REIT sub-index decreased 3.3% to 1,769.
As of 1 June 2018, Wyndham Hotels & Resorts replaced Wyndham Worldwide in the Hotel Stock Index and brand sub-index.
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.
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