Baird/STR Hotel Stock Index up 20.9% in ’12
The Baird/STR Hotel Stock Index outperformed both the MSCI REIT (RMZ) (+13.6 percent) and the S&P 500 (+13.4 percent) in 2012. It also outperformed the two indices in December, during which the RMZ was up 3.2 percent year over year and the S&P 500 was up 0.7 percent year over year.
"Given the slow economic recovery, the Baird/STR Hotel Stock Index finished 2012 on an encouraging note," said Randy Smith, co-founder and chairman at STR. "Hotels benefitted from increased demand and limited supply growth, and we anticipate the momentum the hotel industry gained in 2012 to carry over into 2013 for another positive year."
"Hotel stocks continued to rally into year-end as fundamentals remained strong and above expectations post-Hurricane Sandy," said David Loeb, senior hotel research analyst and managing director at Baird. "With the Fiscal Cliff behind us, at least for now, investors are re-focusing their attention on the 2013 supply-and-demand outlook, which remains quite favorable; however, the upcoming debt ceiling debates will likely take center stage in the coming weeks and could be the main driver of hotel stock performance in the first quarter."
About the Baird/STR Hotel Stock Index
The Baird/STR Hotel Stock Index was set to equal 1,000 on 1 January 2000, as its starting point. The Index reached its peak of 3,178 on 5 July 2007. The Index's lowest point occurred on 6 March 2009, when it dropped to 573.
The Index is available exclusively on www.hotelstockindex.com and www.HotelNewsNow.com. The Baird/STR Hotel Stock Index is a cobranded index created by Robert W. Baird & Co. (Baird) and Smith Travel Research, Inc. (STR). The market-cap weighted Index is comprised of 15 of the largest market capitalization hotel companies publicly traded on a U.S. exchange and attempts to characterize the performance of hotel stocks. The Index is maintained by Baird and is hosted on HotelNewsNow.com. The Index is not actively managed and a direct investment cannot be made in it.
The companies that comprise the Baird/STR Hotel Stock Index: Choice Hotels International, DiamondRock Hospitality, Hersha Hospitality Trust, Hospitality Properties Trust, Host Hotels & Resorts, Hyatt Hotels Corporation, InterContinental Hotels Group, LaSalle Hotel Properties, Marriott International, Pebblebrook Hotel Trust, RLJ Lodging Trust, Starwood Hotels & Resorts Worldwide, Strategic Hotels & Resorts, Sunstone Hotel Investors and Wyndham Worldwide.
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 2,700 associates serving the needs of individual, corporate, institutional and municipal clients. Baird had nearly $97 billion in client assets on Sept. 30, 2012. Committed to being a great place to work, Baird ranked No. 14 on FORTUNE's 100 Best Companies to Work For in 2013 – its tenth consecutive year on the list. Baird's principal operating subsidiaries are Robert W. Baird & Co. 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 Baird's Web site at http://www.rwbaird.com//ohttp://www.rwbaird.com/" target="_blank">www.rwbaird.com.
Rachael Spann Urie
Director, Public Relations
Phone: +1 (615) 824-8664 ext. 3305
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 16 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.